PayPal have created a step-by-step guide to help you through the chargeback process. Take a look at PayPal's Chargeback Guide.
Chargebacks for Sellers & Buyers
A chargeback happens when a buyer asks their credit card issuer to reverse a transaction that has already cleared. This can mean that a payment you've received in your PayPal account could be reversed, even if you've already posted the goods – which can of course be frustrating.
PayPal will help you as much as possible if you wish to dispute a chargeback, but the final decision lies with the credit card company. However you can also get protection with PayPal's Seller Protection policy.
Why do chargebacks occur?
There are a few reasons why a buyer would request a chargeback:
1. An unauthorised payment was made with the buyer's card
2. The buyer didn't receive the item that was paid for
3. There were errors in processing the transaction
4. The item does not match its description
The maximum time a buyer has to file a chargeback with their credit card company is typically 120 days after the expected delivery of the agreed goods or services. Certain exceptions may apply.
Tips to help sellers avoid chargebacks
• Track your delivery: Always use a postal method that provides online tracking and proof of delivery, which you can send to the buyer as soon as you have a tracking number
• Be accurate: Describe items in as much detail as possible, so buyers know exactly what to expect and cannot claim that an item is 'significantly not as described'
• Know your customer: Ask for more information such as their full name and address, get in touch with them and review eBay feedback (if available)
• Deliver on time: Always post your items in a timely manner - where possible, you should aim to dispatch your items within seven days of receiving payment
• Be transparent: Make sure that buyers know about your returns policy
• Be responsive: Don't let buyers feel that their problems are unresolved
• Post carefully: Avoid posting to an address different to the one provided by PayPal
• High-risk countries: We advise extra caution when posting to Macedonia, Lebanon, Ukraine, Lithuania, Nigeria, Romania, Pakistan, Bulgaria and Indonesia.
• Check ID: If a buyer collects an item in person, ask them to bring along proof of identity. If another person is collecting the item, they should also bring proof of identity and a signed note from the buyer authorising them to collect on their behalf. Note: Payments received in person are not covered under the Seller Protection policy.
If you wish to dispute a chargeback, you will need to provide certain information and evidence depending on the case. Below are the two most common reasons for chargebacks and the information you need to provide in each case:
1. The buyer didn't receive the item
You must provide either:
A tracking number as provided by Royal Mail Recorded Delivery and Parcel Force 24
Proof of a refund – this can be evidence from your PayPal account, the back and front copy of a cheque, or a money order used to reimburse the buyer
2. Unauthorised use of credit card
You should provide:
1. Tracking number for delivery of the item
2. Proof of a refund – this can be evidence from your PayPal account, the back and front copy of a cheque, or a money order used to reimburse the buyer
3. Any communication from the buyer, such as emails or positive feedback on eBay
4. Any contracts signed or information on the sent item
5. Date that the item was sent and the address it was sent to
6. For intangible items or subscriptions – any information regarding the item or service
In these and all other chargeback cases, the more relevant information you can provide, the better your chance of reversing the chargeback.
How does PayPal notify a seller when a chargeback has been filed against them?
When PayPal is notified that a buyer has filed a chargeback against a seller, PayPal emails the seller as soon as possible. Then, the seller can log into their PayPal account and go to the Resolution Center to monitor the status of the case and provide information to help resolve the matter.
How can a seller recover funds when a chargeback occurs?
When a chargeback occurs, the money that is subject to the chargeback is deducted from PayPal's bank account. In turn, PayPal places a temporary hold on the same amount in the seller's PayPal balance (i.e., the funds related to the transaction are frozen).
The seller and PayPal can work together to investigate the chargeback with the buyer's credit card company. While the chargeback is being investigated, PayPal will debit the seller for the amount in question. If the investigation is resolved in favor of the seller with the credit card company, the credit card company will reimburse PayPal for the chargeback and PayPal will transfer the recovered funds back to the seller. Depending on the credit card company involved, the process may take up to 75 calendar days. In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal cannot control the outcome.
PayPal and the seller work together to investigate a chargeback with the buyer's credit card company
Sellers can provide PayPal with evidence to dispute the chargeback through the Resolution Center, by email at Tato e-mailová adresa je chráněna před spamboty. Pro její zobrazení musíte mít povolen Javascript., or fax. PayPal uses this evidence plus any evidence PayPal may already have to investigate the chargeback with the buyer's credit card company. Because of deadlines imposed by the credit card companies, sellers must respond quickly (usually within three calendar days) once they are notified of a chargeback. Response deadlines can be found in the email PayPal sends to the seller when notifying them of a chargeback.
PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.
What information can a seller provide to increase the chances of winning a chargeback dispute?
Some types of information that sellers can provide to PayPal to increase the chances of winning a chargeback include:
1. Proof of postage or delivery, such as online tracking numbers
2. Copies of the original item description or auction description, including any photos
3. Proof that the buyer was already refunded
4. Proof that the buyer was provided with a replacement product
5. Correspondence with the buyer or feedback from the buyer
6. Any agreements signed or accepted by the buyer at time of purchase
7. Any returns policy that was communicated to the buyer
Does receiving a chargeback affect a seller's MartFame feedback?
The chargeback system is independent from MartFame feedback. Filing a chargeback does not limit a buyer's ability to leave feedback for a seller. In fact, a buyer can file a chargeback even if they have already left positive feedback for the seller. Receiving a chargeback does not in itself negatively impact a seller's MartFame feedback rating.
Buyer's Protection
If an eligible item that you've purchased online, eBay or otherwise, doesn't arrive or doesn't match the seller's description, we will look into it. If it's discovered that something is wrong, our Purchase Protection will reimburse you for the full purchase price of the item plus shipping costs.
For more information, see user agreement
Examples
You bought a book but got a DVD, you bought a new item but got something that was used, you purchased 3 items but only got 2, the item was damaged during shipping, the item is missing major parts (that the seller didn't disclose), or you purchased an authentic brand but got a knockoff instead. Tell us.
Guidelines
If the seller has accurately described an item, but you're just not happy with it, if you fail to open the dispute within 45 days of purchase, or if your account is not in good standing, you are mostly likely not covered.
Items Not Covered
Intangible items like digital goods or services, real estate, motorized vehicles (of any kind), custom made items, travel tickets, industrial machinery (for manufacturing), prepaid cards, or items that violate our policies or eBay's policies, anything you buy in person, or money transfers to friends or family. You must open any dispute within 45 days or you will not be covered.
Account Protection
You're not liable for unauthorized purchases made from your account if you report an eligible incident within 60 days.
Refunds
If an order doesn't arrive or match the description, we'll reimburse the full cost of eligible purchases and paid shipping costs.
Responsive Support
We're here to help. Get full support with suspicious activity, identity theft, or phishing. Report your suspicions to PayPal or MartFame directly.
Tips to help sellers avoid chargebacks
- Track your delivery: Always use a postal method that provides online tracking and proof of delivery, which you can send to the buyer as soon as you have a tracking number
- Be accurate: Describe items in as much detail as possible, so buyers know exactly what to expect and cannot claim that an item is 'significantly not as described'
- Know your customer: Ask for more information such as their full name and address, get in touch with them and review eBay feedback (if available)
- Deliver on time: Always post your items in a timely manner - where possible, you should aim to dispatch your items within seven days of receiving payment
- Be transparent: Make sure that buyers know about your returns policy
- Be responsive: Don't let buyers feel that their problems are unresolved
- Post carefully: Avoid posting to an address different to the one provided by PayPal
- High-risk countries: We advise extra caution when posting to Macedonia, Lebanon, Ukraine, Lithuania, Nigeria, Romania, Pakistan, Bulgaria and Indonesia.
- Check ID: If a buyer collects an item in person, ask them to bring along proof of identity. If another person is collecting the item, they should also bring proof of identity and a signed note from the buyer authorising them to collect on their behalf. Note: Payments received in person are not covered under the Seller Protection policy.
If you wish to dispute a chargeback, you will need to provide certain information and evidence depending on the case. Below are the two most common reasons for chargebacks and the information you need to provide in each case:
Seller Protection
If you are sent an unauthorized payment (for example, from a hacked account) or a buyer claims they never received their item, our Seller Protection covers you for the full amount of the payment on eligible sales.
For more information, see User Agreement
Protected Sales
Tangible items that are sold and shipped with proof of delivery from within the United States to buyers worldwide. To ensure you're protected, ship within 7 days to the address that the buyer specifies during checkout. Be upfront about all the details of the item, specifically defects, use, and abnormalities. Also disclose an accurate delivery estimate.
Proof of Delivery
Required for protection eligibility. A digital or physical proof of delivery from the shipping company that should include: ship date, buyer's address, and delivered date.
Items Not Covered
Items that don't match your description, intangible items like services or digital goods, items that violate our or eBay's policies, and items you sell or deliver in person. All are not covered.
Reassuring Buyers
Become a Verified seller to give buyers additional peace-of-mind and attract more customers.
Resolution Support
We provide full support to help resolve any buyer disputes or fraudulent payments.
Tips
For payments over $750 USD (or local currency equivalent, including shipping and tax) or more, be sure that you have signature confirmation of delivery in addition to proof of shipment (See above). If a buyer files a claim, you must respond to our requests for information as outlined in our communications to you.
You ship the item to the shipping address listed on the PayPal Transaction Details page. If you're not selling on eBay, make sure you ship to a Confirmed Address. This means that you're shipping to an address that PayPal has validated to help reduce chances of fraud.
MartFame's Role for Buying & Selling on MartFame.Com
MartFame provides a platform for third-party sellers ("Sellers") and buyers ("Buyers") to negotiate and complete transactions. MartFame is not involved in the actual transaction between Sellers and Buyers, except as set out in Section 5. As a Seller, you may list any item on the Site unless it is a prohibited item as defined in the procedures and guidelines contained in the Help section, or otherwise prohibited by law. Without limitation, you may not list any item or link or post any related material that (a) infringes any third-party intellectual property rights (including copyright, trademark, patent, and trade secrets) or other proprietary rights (including rights of publicity or privacy); (b) constitutes libel or slander or is otherwise defamatory; or (c) is counterfeited, illegal, stolen, or fraudulent. It is up to the Seller to accurately describe the item for sale. As a Seller, you use the Site and the Services at your own risk.
Overview of MartFame Selling Policy
All Vendors/Sellers must adhere to the following policies when listing products on MartFame.com. Vendor/Seller offenses and prohibited content are direct violations of our Participation Agreement, of which these Selling Policies are a part, and can result in suspension of your MartFame.com account or involve Local/International arrest depending level violation.
Where can I get more information?
PayPal have created a step-by-step guide to help you through the chargeback process. Take a look at PayPal's Chargeback Guide.
