Paypal Chargeback Protection Is the Real Deal!

Over the years, I’ve seen many people complain about Paypal, whether it be on forums or on blogs. Allegations of accounts being closed, funds being frozen, all kinds of stuff etc. So, just to tip the scale the other way, here’s a story where a chargeback was actually covered by Paypal’s Seller Protection Policy.

I’ve been using Paypal since I started doing business online. I’ve never had a problem with them. I do find that the fees are quite high at times, but you can’t beat the convenience of the service.

All was great until a month ago, where I received an email from them, one I had never received before, about a CHARGEBACK. Long story, short, some customer was trying to rip me off for an order in the high $XXX. Not the end of the world, like they say, that stuff happens, but, it’s still very frustrating.

When a chargeback occurs, Paypal freeze the funds in your account, and gives you 10 days to email them back with information about the transaction in issue.

Basically, to be eligible for their Seller Protection Policy, you must have shipped the product to the buyer to the address he used when making the payment through Paypal, with shipment tracking.

I had done all this, but, remembering all the horror stories I had read, I felt like this money was gone.

Well, a little less than one month later, Paypal emailed me back to say I was protected, and that they would cover the chargeback. My funds were unfrozen, minus a $20 fee for I don’t know what.

Nice. It was the first time I had faced a chargeback, as it’s not something that is likely to happen in the type of business I run. But still, it’s good to know that there’s some kind of protection. Unfortunately, it only works for goods shipped, not services…

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