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Chargeback left my account with negative balance

After receiving a chargeback which left my Paypal account in negative balance, I appealed against the decision. However, as the goods I sold via Ebay were “virtual” (An Amazon voucher code I sent via email and Ebay message) – Paypal refused to look into the matter. Even after going back onto Ebay, looking at the buyers feedback and contacting other sellers he had purchased from, all of which confirmed he had done the same to them… many of the items he “purchased” were for online voucher codes and iPods… then giving Paypal all the information… nothing. I offered Paypal every chance to see proof of the delivery, they were welcome to view my Ebay account messages, email messages, contact Amazon… they would not budge. I decided there and then that would be the last time I used Paypal and Ebay. I made sure I removed any authorization / direct debit agreement with my bank so Paypal could not take any money from my account. As far as I was concerned… I was more than happy to leave my Paypal account in negative balance as I was never going to use it again. A few months later I receive an email from Paypal asking me to resolve my negative balance. I logged onto Paypal, and could not believe it, 2 other chargebacks had been issued, one was even 6 months after the initial transaction and I could no longer find the details of the sale on Ebay. All 3 chargebacks were claiming unauthorized account use! After writing many emails to Paypal, and refusing point blank to resolve my negative balance they started harrasing me with telephone calls. I was lucky in that the total amount “owed” was approx £30 ($20) – but still – if I paid it to Paypal, I would in effect be paying for my own items that I sent to someone else… ridiculous!!! They have now passed “my debt” onto debt collectors, I have told them to sue me. I refuse to pay, and I refuse to use their services ever again. I have spent hours sending emails to sellers on Ebay warning them of this scam. Something needs to be done, Paypal cannot get away with riding roughshod over its customers, most of us who have been very loyal for years. This needs to stop. United we stand!

Posted: July 9, 2012 at 3:12 pm


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3 thoughts on “Chargeback left my account with negative balance
  1. Penny on

    Unfortunately when dealing with a business and accepting credit cards there is always a chance of charge back. However with a real merchant account company they will do an investigation to make sure you as a seller are not getting screwed unlike paypal. They seem to be one sided when it comes to stuff like this. This is unacceptable!!!

  2. Branden FB on

    Virtual goods is one of those things that you have zero protection selling on ebay using Paypal. ebay even states on their website that it is not allowed but then if you read further they do allow it but warn about the fraud potential. If they know about the fraud potential they should not allow it at all. But I guess if there is money that can be made ebay and paypal does not want to miss out on that opportunity.

  3. Shawn on

    Unfortunately this is the chance anyone takes when accepting credit cards especially when selling virtual goods. Paypal really doesn’t care about their customers and put in no effort to help resolve issues like this. As long as they get their money they don’t care what happens to you