If a customer asks you to use their shipping service, review their order for fraud carefully. They may have used a stolen card or bank account to fund the purchase.
Ship to the address on the Transaction Details page. Pre-paid shipping label scam You receive an order from a customer who asks you to use their pre-paid label to cover the shipping charges.
They may tell you that they can get their labels at a discounted price. By providing the label, the customer controls the destination of the package. They may send it to another country, a PO box, or some other untraceable location. To be covered under PayPal's Seller Protection policy , you are required to ship to the address on the Transaction Details page.
The shipping label may also have been purchased with a stolen credit card. How to avoid this scam : If the customer asks you to use their pre-paid label, review their order for fraud carefully. They may have used a stolen card to make the purchase. Do not accept shipping labels from your customers. Package rerouting scam The buyer reroutes the package so they can file a complaint that they never received it.
A buyer places an order and provides an incorrect or fake shipping address. The shipping company tries to deliver the package but isn't able to. The buyer monitors the online tracking information and notices that the shipper couldn't deliver the package.
The buyer contacts your shipping company and asks them to send the package to their correct address. The shipping company delivers the package to the new location. The buyer then files a complaint about not receiving the item. Because the shipment was rerouted, you can't prove the item was delivered to the address on the Transaction Details page. The buyer gets to keep the item and money.
Because the package wasn't delivered to the address on the Transaction Details page, you aren't covered by Seller Protection. Unfortunately, you lost the product, shipping fees, and the money.
To make it worse, you might also have to pay your shipper an additional rerouting fee. How to avoid this scam : Contact your shipping company and block buyers from rerouting packages. Validate the buyer's address before shipping. Only ship to the address on the Transaction Details page. Reshipping packages scam One of the more popular work-from-home scams is reshipping electronics, clothing, and other items out of the United States.
You receive items electronics, jewelry, clothing, etc. Packages may be addressed to someone else's name the stolen credit card victim. Your "employer" provides you with a shipping label also paid for with a stolen credit card.
Your "employer" asks you for personal information, such as your Social Security Number and bank account details, so they can "direct deposit" your check. Most merchants will not ship items out of the country. Fraudsters need you to act as an intermediary to help get the goods out of the country. It also helps them avoid getting caught. They use your personal information to steal your identity or take over your account.
How to avoid this scam : If it's too good to be true, it probably is. Know who you are dealing with and don't reship packages.
If you didn't realize you were involved in a scam until the packages started arriving, refuse delivery or return to sender. Never give your private personal or financial information to anyone you don't know.
Employment scam Someone contacts you about a great new business opportunity. They need an employee or partner to sell cameras or some other expensive product for them.
Scammers trick innocent and trustworthy people into sending them money and merchandise. Use the money from the orders to pay their supplier.
Update your PayPal account address to their address. Instead, they received an empty box from the scammer. You contact the supplier. They inform you that your partner said you would be sending money for gold bullion, so they shipped the gold bullion not cameras to your PayPal account address. You remember that your partner asked you to change your PayPal account address to their address, so they could pick up the gold.
You paid the supplier for the cameras, so you file a complaint against the supplier. Unfortunately, you learn that you may be liable for the money since the supplier delivered the merchandise to your PayPal account address. How to avoid this scam: If it's too good to be true, it probably is. Know who you are dealing with. Don't list someone else's address on your PayPal account. Verify your suppliers and don't send money to someone you don't know. Only ship items to the address on the Transaction Details page.
After you send us the email, delete it from your inbox. If you clicked on any links or downloaded any attachments within the suspicious email or website, log into your account and view your transactions. To view all transactions and activity, log in to your PayPal account and check your recent activity.
If you see any unauthorized transactions, go to the Resolution Center to report them. Related stories. Claims happen when a buyer complaint is escalated to PayPal or the buyer filed an unauthorized transaction. Learn why claims occur, how to respond to them, and what the claims process looks like.
Chargebacks can happen when a customer who has made a purchase from you files a complaint with their credit card company. Whether you own a small business or you have an online store, chargebacks can impact your business. While it can seem like a lengthy process, being responsive and providing proper documentation are key in coming to a prompt resolution.
As a small business owner, you want to do everything you can to protect your business, including processing customer payments smoothly. This is where choosing a payment provider with seller protection can help. To respond to a notice or check the status of a chargeback: Log in to your PayPal account. How can I help prevent a chargeback? Providing good customer service and communicating with buyers will go a long way toward helping to prevent chargebacks.
For instance, making it easy for buyers to contact you could keep a small problem from growing into a chargeback. How can I avoid chargeback losses and increase my chances of winning a chargeback?
First, you should follow seller protection guidelines, provide relevant information when asked, and review orders for fraud. If a chargeback is filed against you, be sure to provide information to help resolve it and be careful to follow any guidelines outlined by the credit or debit card issuer. How will a chargeback be processed? The chargeback process could take 75 or more days to be resolved. During this review process, a temporary hold may automatically be placed on the transaction funds.
Simply having a chargeback filed against you will not automatically affect your seller feedback. To help avoid chargeback losses, follow the guidelines outlined in our Seller Protection Policy for Unauthorized Transaction or Item Not Received chargebacks. Bank Reversals: When buyers file a complaint with their bank.
A bank reversal, sometimes called an ACH return, is when PayPal receives a request to return funds for a transaction that was funded by a bank account. This request might come from the buyer or the bank itself. Usually this request is filed because of suspected unauthorized use of a bank account. Why might a bank reversal occur? The following events may trigger a reversal: The buyer's bank account was used without their permission to purchase an item fraudulently. The buyer does not recognize the transaction.
How will I know if a bank reversal has been filed against me? A reversal case will also be filed in the Resolution Center. How do I respond to a bank reversal? To respond to a reversal: Log in to your PayPal account.
Click Resolve under Action next to your case. The next steps will depend on how you choose to respond. In some instances, you may not be liable for the reversal. Note that once a reversal has been filed, please refer to the email on the number of days you have to respond. Based on the situation, the response time frame is between 7 and 10 days. How can I help prevent a bank reversal? The best way to help prevent a bank reversal is to follow security guidelines and review orders for fraud.
The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision. Was this content helpful? Yes No. Frequently asked questions. What is a case report? The case report formerly known as the Downloadable Dispute Report or DDR provides a regular operational report of all claims made against a merchant's PayPal account.
This report indicates: The current state of any open cases against the merchant. All claims that have changed state in the past reporting period generally 24 hours. Claims opened within the last two years which haven't been resolved. Changes within the merchant's dispute and claim activity that might affect their daily support operations, financial accounting, or transactional history.
Dispute types Claims: Consumers file a claim against a merchant when they want to reverse a transaction with that merchant. All unresolved disputes automatically become claims. Disputes: Consumers file a dispute against a merchant when they want to work with the merchant to resolve an issue with a payment. No money movement is involved. Merchants are encouraged to reply to disputes to prevent a consumer claim against a transaction.
Chargeback: A chargeback occurs when PayPal returns funds to a consumer. This approach is used when the consumer feels that PayPal will resolve their complaint better than their funding source, or when the PayPal payment was funded directly from the consumer's PayPal balance. This approach is used when the customer used a bank to fund the PayPal account. PayPal often holds the amount of the disputed transaction in an unavailable balance until the ACH return is resolved.
Unauthorized: An unauthorized dispute occurs when a consumer or PayPal has identified fraudulent use of a PayPal account. Reversal or temporary hold: Refers to a PayPal-initiated investigation. PayPal sometimes flags specific transactions based on the appearance of fraudulent activity, or actual fraud.
PayPal often holds the amount of the transaction in an unavailable balance until the investigation is complete. What is a chargeback, and why did I get one? Received a damaged or defective item. Were charged more than once for something.
Choose one of the below options listed to resolve the chargeback: Provide valid tracking information in order to dispute the chargeback received. Provide valid proof of a refund either within or outside of PayPal in order to dispute the chargeback. Accept liability for the chargeback. What are reserves? An account reserve is an amount of money that is on hold in your PayPal account to cover potential financial risk such as payment reversals you may receive like chargebacks and claims.
PayPal uses three types of reserves: rolling reserves, minimum reserves and jumpstart reserves. A Rolling reserve is a reserve where a percentage of each transaction you receive each day is held and then released later on a scheduled basis.
This is the most common type of reserve. The minimum reserve is either taken as a percentage of money held until a certain amount has been reached, or a one-time amount. A Jumpstart reserve is when funds are held from your available balance immediately.
We may also use a combination of a reserve types on your account. A PayPal claim is the process by which PayPal steps in to resolve issues between buyers and sellers. These can be either disputes where the parties failed to come to an agreement or cases where the buyer says they didn't authorize the transaction. How do you fight a PayPal claim? To successfully combat PayPal claims, merchants should thoroughly document transaction and shipping information for later recall, provide compelling evidence to counter false claims, and make sure their sales are eligible for Seller Protection if possible.
What is PayPal's dispute process? When a dispute is opened, the parties involved have 20 days to resolve the issue in a way that satisfies both of them. If the seller declines to respond or if the issue can't be resolved, either party can escalate the dispute to a claim. What is PayPal's claims process? When a buyer opens a claim, the seller has 10 days to file a response, including any documentation they wish to upload to support their case.
If the seller doesn't respond by the deadline, the case is decided in the buyer's favor. How can I prevent PayPal chargebacks? Can you win a PayPal dispute? Yes, provided you have the right evidence. In order to win a PayPal dispute, the merchant needs to provide documentation addressing the customer's reason for the dispute. This often means identity verification records or shipment tracking and delivery confirmation.
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