A reader who works in the chargeback section of a major credit card company has just about had enough with people tossing around “chargeback! chargeback!” as the solution to every customer service problem. While it is a great tool, you gotta make sure you use it right. To help you do that, here’s our credit card company insider’s guide to the top 10 reasons why your chargeback will get rejected.

Jul 28, 2019 What Happens When You Chargeback Gambling Deposits It’s imperative to remember the UIGEA made it illegal for companies to process transactions to online casinos but it didn’t deem it illegal for U.S. Residents to play at them. Every casino offers free spins, free credit or free money on depositing a certain amount, which is known as a casino deposit bonus. Most popular online casino credit card chargeback casinos online by bonus, software, games, language, currencies and payment options. For many years, live casino developers had a blackjack shaped problem on their. Page 248 of the Mastercard Chargeback Guide released in May 2018 specifies that, if you use 3-D Secure during a transaction, that sale is not eligible for a chargeback involving any of the following reason codes: 4837—No Cardholder Authorization 4849—Questionable Merchant Activity 4863—Cardholder Does Not Recognize—Potential Fraud. Performing a chargeback is like stealing, or, like claiming that the online casino itself is stealing. When you perform a chargeback, you are essentially telling the credit card company that you’ve identified a company with malicious behavior. The credit card company takes your side, since you’re their client, and they cancel the payment. It’s important to understand Mastercard chargebacks and the rules that govern them. If you don’t, your bottom line will suffer. Unfortunately, card brand rules are constantly changing. It can be difficult to stay current and compliant. To make transitions easier, Midigator ® created this Mastercard chargeback guide. We’ll share updates.

10. LYING
Remember, the merchant does have a chance to rebut these things. If you tell us that you ordered widget A but received widget B but have no proof, and the merchant sends proof that you actually ordered widget B, you’ll probably be getting rebilled!

9. THE CHARGE IS TOO OLD
Please, please check your statement every month. We work within very limited timeframes, and, technically, you are required to notify us of a dispute (in writing! Just calling in doesn’t obligate us to do anything), within 60 days of the statement date the charge appears on. Visa gives some extensions: non-receipt and quality. With quality, you have to show you’ve been working with the merchant consistently to resolve the problem. MasterCard pretty much only gives extensions on non-receipt.

8. NOT GETTING A SECOND OPINION LETTER FOR CHARGEBACKS OVER $100
If you’re disputing the quality of something over $100.00 or so, it pays to get a second opinion letter. Within reason, of course. If you’re disputing the quality of a repair, on the other hand, you pretty much have to have one. These need to be on a merchant’s letterhead and have actual details about your dispute. “Car still broken,” will get you started, but if the merchant sends a rebuttal it’s probably not going to fly.

7. YOU BOUGHT IT IN FRANCE
The lovely consumer protections we enjoy in the U.S. do not follow you across our borders. If you buy something overseas, the burden is on you to return the item and prove it the merchant accepted the return before we can do anything. International quality disputes? Forget it. Strangely enough, this is the one category that MasterCard is better in as it does not differentiate between domestic and foreign merchants.

6. TRYING TO CHARGEBACK A DIRTY HOTEL ROOM AFTER YOU STAYED IN IT
If you go to a hotel and the room is filthy, leave within 20 minutes and get proof of your checkout, if possible. If you stay the night, you accept the room.

5. NO PROOF YOU MADE THE RETURN BY MAIL
When you return something by mail, GET PROOF OF RETURN. This can not be emphasized enough. Tracking numbers work best, return receipts work as well. When you return something you have the same burden of proof to show the merchant gets it back as they do to show you have it in the first place.

4. FORGETTING THE DATE IT HAPPENED
When asked for dates, please provide them and be as specific as possible. It doesn’t have to be exact, but if you called around the middle of the month, April 15, 2009 is better than April 2009, especially since we’re going to have to call you to get a more specific range and do the same thing anyway. “Don’t remember” is not a valid option.

3. NOT GIVING THE MERCHANT A CHANCE TO FIX THE PROBLEM
Get in touch with them before you get in touch with us. Believe it or not, most merchants are actually on the up and up! If the merchant offers to try to fix whatever problem you have without charging more, you have to give them the chance. If you’re from New York and got your car repaired in Florida, you get back home and the repair isn’t working right, still have to give them a chance.

2. DISPUTING THINGS FOR THE WRONG REASON
It makes things more difficult and makes it more likely that you will lose. Don’t dispute things as “unauthorized” unless you never gave the merchant your credit card number. Don’t dispute things as “non-receipt” if the merchant did do something but you didn’t get the results you wanted.

1. USING MASTERCARD
With Mastercard (MC) the burden of proof lies on you. If you buy something face-to-face, get home and realize that it’s not as described, you’re out of luck entirely as you had a chance to examine the merchandise. Also, with MC it’s entirely up to you to know the merchant’s cancellation/return policy, even if they don’t disclose it. They didn’t tell you that you couldn’t cancel after three days? Too bad. Seriously, just use a Visa. It’s easier for everyone.

(Photo: frankieleon)

Editor's Note: This article originally appeared on Consumerist.

PayPal holds immense brand authority for online payments, that is one of the reason that PayPal chargeback has become one of the hottest dilemmas amongst online sellers.

To address this concern we have decided to dedicated this post about ‘ how to chargeback on PayPal ’, or put simply getting a refund for your purchases.

In the sections that follow we discuss ‘what a chargeback is?’ and ‘how to do a chargeback on PayPal?

What is a Chargeback?

The PayPal defines it as “…when a customer files a chargeback with their credit card issuer, it means that they’re disputing a charge and asking the card issuer for a refund.”

Buyers can simply demand refunds for transactions and inform their credit card company to cancel/refund the payment.

These refunds are termed “chargebacks” in banking terms.

In case of the chargeback, PayPal will freeze the funds in the seller account. There are several reasons that can lead to a chargeback:

• The buyer does not receive the product(s)
• A buyer receives damaged or defective item(s)
• Buyer doesn’t recognize/remember the credit card payment
• The buyer receives gets the charge more than once for a transaction
• When a buyer did not authorize the payment

In case of a chargeback on PayPal, the seller incurs a chargeback fee but this fee can be waived (few cases) off if the seller is subscribed to the Seller Protection Policy.

A better way sellers can manage chargeback on PayPal is using breakthrough ecommerce assurance & order verification app. These apps charge a meager amount to guarantee verification of orders and a 100% refund guarantee in case of chargebacks.

Generally, when a buyer requests a chargeback, the service immediately contacts the buyer’s credit card issuer. PayPal does not hold any authority during the chargeback process though.

That’s how a chargeback process works with PayPal.

1. The buyer requests a chargeback from their credit card issuer for a chargeback. A phone call or email with complete evidence of the transaction is enough.
2. The credit card issuer then informs PayPal’s official merchant bank and withdraws the funds from their account.
3. PayPal then puts the chargeback funds on hold and deems them untouchable.
4. Both buyer & seller are then notified through email. PayPal will request for all information that can help resolve the chargeback.

That’s the basic PayPal chargeback process.

When dealing with chargebacks, some points you need to remember:

• Buyers are eligible for chargebacks on PayPal transactions for 120 days or more after placing the order.
• Sellers who receive chargebacks have a 10 day time period to respond to the dispute.
• Chargebacks on PayPal usually take a matter of weeks but can take up to 75 day or more depending on the case.

How can Sellers manage chargeback on PayPal

Usually, PayPal sides with the buyer providing them a complete refund while the seller is left hanging. You can always get PayPal’s seller protection, but the feature comes with its own rules & restrictions leading sellers nowhere.

Signifyd, is a leading solution available on the Shopify app store designed specifically to support sellers in case of chargebacks. Signifyd’s eCommerce assurance features allow sellers to mitigate against growing eCommerce challenges.

Signifyd provides sellers some brilliant features that:

• Automatically assess order reliability & validity

Signifyd automatically assesses all transactions and verifies if orders are to be completed or not. All orders are secure with chargeback protection to ensure the seller does not experience massive losses.

• Provide auto fraud prevention

The zero fraud prevention feature guarantees all your transactions. In case of fraud as PayPal chargeback, Signifyd app offers the seller a brilliant verification system that ensures no fraudulent transactions can go through. Refund payments are made within 48 hours to sellers.

• Provide fraud liability insurance

The liability insurance as mentioned above covers 100% of refund & chargeback costs. In case a fraud transaction is ever accepted, Signifyd covers the cost of the sale and the chargeback fees.

• Automatic Order Approval/Rejection

The leading edge Signifyd console lets you manage orders automatically removing the hectic tasks. Signifyd will automatically send verified orders for processing while rejected orders are left out.

To learn more about Signifyd, check out this page.

Among other types of scams that a buyer can commit include:

• Claims that products were not delivered, when actually they have.
• When a buyer claims products were defective, but actually they were fine.
• Disputing the quality of the products or services.
• Claims that the transaction was not authorized by them.

The absence of proper eCommerce chargeback laws are the primary reason many of these buyer scams are a success. The developments in eCommerce have led to great ease but also encouraged scams from different parts of the world.

You can take several steps to ensure your shop is not hit by scams:

1. Never ship to a freight company, always ship to the buyer’s home address
2. Verify buyer IP Address. Then verify if billing & shipping address complies with, the IP and location
3. Use a customer & order verification tool that identifies fraudulent buyers. E.g. No Fraud app on Shopify
4. Be sure your store complies with all FTC Regulations
5. Create accurate and easy product descriptions, so there is no objection later from buyers
6. Be very clear about product quality & features, don’t forget to mention anything
7. Be in contact with the customer 24/7 over phone, email or WhatsApp
8. Publish your contact information on the webstore
9. Always consider having PayPal Seller Protection – it may not be perfect but still a great way to protect against scams
10. Always check the email address that sent you the PayPal chargeback notice. Sometimes scammers create fake PayPal related emails to send out scams. (see example below)

Differences between Chargebacks and PayPal Disputes

Since we already know what a chargeback is, let’s quickly overview of PayPal Chargeback vs PayPal Dispute.

In case the buyer & seller fail to agree terms, the buyer can launch a dispute through their dashboard. PayPal freezes the funds till both parties reach a resolution.

The buyer & seller are required to negotiate from this point on, in case the two parties fail to agree PayPal moderation gets involved to resolve the issue and this is then called an “escalated claim”.

Parties Involved

The first difference is of the parties involved. Chargebacks on PayPal involve the buyer and their credit card issuer.

In case of a dispute PP administration keeps the issue in house to get it resolved between buyer & seller.

Account Suspensions

In case of chargebacks on PayPal, the buyer cannot conduct transactions and their account goes into “suspended” status.

In disputes, only the amount for that disputed transaction remains on hold, the buyer’s account remains active for other transactions.

Decision Making

The credit card company holds authority and makes the decision in a chargeback.

In a dispute, first buyer & seller can reach an agreement without escalation. If both parties don’t agree, PP moderators steps in and offers a resolution best for both.

Resolution Times

A chargeback can take up to a minimum of 6 weeks to arrive at a result.

A dispute takes no longer than a month, with both buyer and seller required to act quickly.

Other Types of Objection on PayPal

The objection means any unwanted event happened in PayPal transaction. The Buyer, seller or even the bank could initiate the objection.

Generally, three types of objection occurred on PayPal,

• Dispute

Buyer initiates the dispute when the problem with the transaction occurred.

Reasons for Dispute
The dispute can occur for two reasons:

• Item Not Received (INR): In this case, buyer claims of not receiving the order after the payment.
• Significantly Not As Described (SNAD): In this case, buyer claims the product is not up to the expectation as described by the seller or product is different.

The complaint is through PayPal’s resolution center however, PayPal would not involve in the scene of dispute. Seller will receive an email where he can directly contact the customer to resolve the dispute.

• Claim

Claim is an advanced version of dispute when the disputes is not resolved in 20 days and buyer escalates the issue to PayPal.

Another reason for the claim is ‘Unauthorized Transaction’. It means the buyer’s account may have been compromised or hacked and someone made a purchase from the account without their permission.

In the claim, the seller has 10 days to respond. If the seller does not resolve it in the given time, PayPal will close the claim in favor of the buyer.

If sellers respond within 10 days, PayPal will evaluate the claim and resolves the case within 30 days. However, in complex cases, it could take a long time.

• Bank Reversal

It happens when the buyer or the bank request to refund the transaction made by the bank account.

The Reasons for Bank Reversal:

Bank reversal usually happens when someone uses the buyer’s account information without their consent. The situation in which bank reversal happens,

• The buyer’s bank account was used to purchase an item without their permission.
• Buyer identity unknown transaction.
• When the purchased item did not arrive.
• The buyer was charged twice for the same item.

how to get a refund on PayPal if scammed?

For a buyer, getting money from PayPal, after being scammed, process is very easy and can be done by reporting a dispute with PayPal using their dashboard. Decisions usually take 5 to 10 days and are mostly ruled in favor of the buyer. PayPal will return money to the buyer after an investigation.

For sellers, it is tough to get a refund. PayPal is not an ideal method to use without its Seller Protection service, but even in the case of the protection, some cases are ruled in the buyer’s favor. As a recommendation, sellers should keep all evidence of the transaction and sale, keep track of shipping and delivery, and have a solicitor just in case a large amount is involved. There are no types of PayPal chargeback fees.

Can PayPal Payments be Reversed?

Yes, the PayPal payment can be reversed when a chargeback occurred. The buyer has the authority to ask their credit card provider to reverse the payment that has been made through PayPal account.

Is PayPal safe for sellers on Craigslist?

Sending and receiving payments on PayPal are safe most of the time. Nonetheless, on these websites, there is higher for you to come across with a scammer who would promise to make payment via PayPal but does not follow through it. To identify the Craigslist scam here are some points PayPal mentioned for your guideline.

If you come across any of these conversations just back off, it is a scam.

How to get money back from PayPal friends and family dispute?

There no guarantee of getting a refund from PayPal friends and family dispute. Because there is no buyer’s protection option available if you transfer money as a friend.

So, avoid transfer money to anyone as a friend or family if you do not know the receiver.

Can you get scammed by using PayPal?

There have been cases occurred in the past where some scammer hacked someone’s PayPal account. You have to be sharp to identify forged email or any uncertain activity on PayPal account. PayPal usually reimbursed the payment if you could confirm about being scammed or hacked.

How do I link a debit or credit card to my PayPal account?

You can link your debit/credit card to your account as follows:

1. Sign into your account
2. Click the Wallet button on top of your dashboard page
3. Click + Link a card or Bank
4. Next, click Link a Debit or Credit Card
5. Fill the provided boxes with your card details

What is the PayPal chargeback time limit?

A buyer can file a chargeback 120 days or more after making the purchase. A Seller has 10 days to respond to a chargeback. Usually, chargebacks take up to a few weeks to process. Depending on the complexity of the case some chargebacks can take 75 days or more to process.

What happens to the Seller PayPal Dispute?

In the case of a chargeback, no accounts get freezes or puts on hold, the buyer and seller are requested to come an agreement. If that doesn’t happen, then the PayPal dispute resolution comes to resolve the issue and moves the dispute to claim.

Can I cancel a payment on PayPal?

Recurring payments are canceled through your dashboard, but, one time payments cannot be canceled and must go through the dispute process or chargeback.

How to chargeback on PayPal debit card?

You can get chargebacks on PayPal debit card like any other credit/debit card by demanding a refund from the bank. The amount should take 3-5 days to come back to your account.

How does PayPal Work for Sellers

Chargeback Mastercard Online Casinos

PayPal was a payment gateway primarily designed to help buyers make secure payments for online purchases. The service has never really been an ideal method for sellers. This is largely due to the lack of protections available for sellers. PayPal does, however, accept payments in 25 different currencies from 200+ countries around the world.

Types of Seller Accounts

PayPal allows sellers to receive and send out payments through all of its 3 account types namely basic, premium, and business.

A basic account allows receiving payments but only allows withdrawals of $500 per month. When a bank account is connected to the PayPal account, it is then classified premium and removes the withdrawal limit. A business account is more or less the same as a premium account, it provides the facility for multiple users to access the account.

PayPal Seller Account Fees

Sellers with registered businesses on PayPal also pay a 2.9% fee + $0.30 for every sale transaction. E-store owners who are not using Shopify or an eCommerce platform can embed PayPal for $5 a month. E-Store owners can also make use of the PayPal Payments Pro service which basically allows sellers to accept credit card payment over the phone.

Receiving Payments

When a buyer pays for purchases payments can take upto 5 days to appear in the seller’s account. Usually, if the payment is made by a buyer account linked to a bank, card, or current PayPal balance it is immediately sent to the seller, who can then dispatch the goods. In case of an eCheck payment, the payments usually clear between 5 and 7 days.

Seller Protection

PayPal offers sellers protection from fraudulent buyers through the Seller Protection feature. The process is quite simple:

Mastercard Chargeback Program

1. Sellers only ship items to a PayPal authorized address for the buyers
2. PayPal registers authorized buyer addresses beforehand
3. Authorized addresses are verified through bank account or credit card information
4. Sellers are recommended to provide a tracking number as poof of delivery

In adding to the points as mentioned earlier, there are several other conditions to meet to qualify for a Seller Protection payment. The first of these is that if an order is above $250, sellers need to provide a signature for authentication. This is followed by the principle that goods must be shipped within 7 days of the order. Once all these terms have been met, PayPal guarantees payment for shipment and the product(s).

In a Nutshell

PayPal remains one of the most popular payment processors for online transactions. Buyers unaware about refunds and disputes will definitely love learning about making chargebacks on PayPal transactions. Remember to share my article and leave your feedback to improve my content accordingly. Subscribe to our mailing lists to get the latest Ecommerce tips, hack and strategies for a prosperous business experience.