Unwarranted Chargebacks | Ramblings of an e-trader

Saturday 7 January 2012

Unwarranted Chargebacks

Advertisers in Tasmania, Australia, have been alerted of scammers, who would purchase an item and paying by PayPal. The problem comes when the buyers then claims that it is an unauthorized payment once they have received the goods that they purchased.

This is called unwarranted chargebacks. Although PayPal try their best to avoid this, they evaluate each case of chargeback on a case-by-case basis. So, sometimes, sellers are left without their goods and out of pocket too!

Therefore, if you are selling an item, especially an expensive one, and if the buyer sounds fishy, like if he does not require to have a look at the item, better be careful.

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