Hi, everyone -- happy to be in here with you. I'm Colin Rule, the Director of Online Dispute Resolution at eBay and PayPal. (Also, that first post-- ebayharrigan-- was from Sarah, who manages Seller Protections at PayPal.)

I just wanted to add that it’s important to note that within these rules, sellers can dispute any chargeback. One of the benefits of selling with PayPal is that our chargeback specialists will review any chargeback claim made against you and file a dispute on your behalf if you disagree with the chargeback reason offered by the buyer.

The best way to deal with chargebacks is, of course, to avoid having transaction problems in the first place. In other words, your good customer service and business practices are the best way to prevent a chargeback.

However, chargebacks are an inevitable reality of selling online. If you do get a chargeback, a couple pieces of information can be extremely helpful if you want to dispute it. Proof of delivery, such as online tracking offered by both USPS and UPS, can be critical evidence in reversing the chargeback. A copy of the buyer’s signature confirming receipt can also be extremely effective. Finally, if you did refund the buyer at any point in time, proof of the refund (and/or the shipment of a replacement item) is important. Of course, if you used the PayPal refund tool, we already have the evidence needed to fight the chargeback on your behalf.

Most eBay sellers understand the risks associated with doing business online. Most sellers have set up processes or thought through how to handle these typical business problems, but many sellers on eBay haven’t had the experience of running an online business, or even a face-to-face retail store. In reality, as large merchants have understood for a long time, selling (whether as an eBay seller or a large brick and mortar retailer) always involves some risk. Online, there’s always the possibility that an item will get returned, a shipment will be lost, or even that a buyer may attempt fraud (such as payment with a stolen credit card). Offline, there’s shoplifting, bounced checks, counterfeit currency, returned merchandise, or payments from stolen credit cards.

How does seller protection work if the buyer files a chargeback rather than a paypal dispute/claim?

Does seller protection kick in at all?

Hi golfingaddict,

Yes, the Seller Protection Policy applies to chargebacks that were filed because the buyer claims they didn't get the item or they didn't authorize the payment.

In addition, we have something called Chargeback Protection when a issue has been filed and resolved through PayPal dispute resolution. If you resolve the issue or win it outright through the claims process on PayPal and the buyer files a chargeback after the fact, PayPal will protect you for that chargeback, no matter the reason.

-Sarah

golfingaddict:

Seller protection never expires, so even if they manage to file a chargeback six months down the road you're still covered. Also, if you're not eligible for Seller Protection, and you work the issue out in the dispute or claim process, you'll be covered under the Chargeback Protection program, as Sarah just explained.

That said, most card issuers have a limited timeframe for filing a chargeback -- usually about two billing cycles. So I'd bet that kind of super-late chargeback filing is relatively rare.

Colin

Maybe I am misunderstanding.

In post number 1 you are saying that the credit card companies usually side with the buyer, so there is nothing you can do and the seller automatically loses. (Most card companies immediately assume the buyer is right, so they grant the chargeback without too much rigmarole. Then they inform PayPal that a chargeback has been filed. PayPal passes along this information to you, and the payment is reversed. )

Don't you have the means to dispute the chargeback?

And if we don't know that we are paid by credit card, aren't we as the merchants at a disadvantage? I'll fight the credit card company if you won't, but my hands are tied because I don't even know it is a credit card payment.

Will the new PS seller protection save us even from chargebacks if we ship to the address on the payment and have delivery confirmation?

And what is the deal with Fed ex and USPS as proof of delivery. Why is UPS not on the list?

Will the new PS seller protection save us even from chargebacks if we ship to the address on the payment and have delivery confirmation?

And what is the deal with Fed ex and USPS as proof of delivery. Why is UPS not on the list?

When a buyer claims they didn't receive the item, we will protect the seller as long as they can provide proof of delivery to the buyer's address. FedEx and UPS provide online tracking as does USPS Delivery Confirmation. This applies for both the Seller Protection Policy and expanded seller protection for PowerSellers.