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PayPal Chargebacks

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Tim of Woodbridge VA (2/3/03):
I sold something on eBay, the customer paid through PayPal. The item was damaged in transit, so I refunded the money through PayPal. A month passes and PayPal allowed a credit card chargeback from the customer's bank to hit my account. The amount in question is roughly $2300.00. Even after providing PayPal with proof from their own site (this makes no sense to me, its their company, they have records, look at my account and see that the refund was sent), they still keep telling me "It could be up to 75 days while we investigate this matter".

What is there to investigate? Paypal processed both the original payment and the refund to the customer. Contact his bank and give them the information of the transaction you processed. My account balance is -$2300.00, so any payments that come in while they "investigate" never make it to me, they just reduce the negative balance.

My business has come to a standstill. I cannot ship items sold or do anything. What is the point of being honest and refunding a customer if companies like PayPal don't recognize the refund they issued and take another $2300.00 from your account?

Keith of Head of the Harbor, NY (6/5/02):
I refunded a buyer who had paid me, due to a problem with my merchandise. However, PayPal deducted the money from my account twice instead of just once. I received a payment for another item which WAS delivered and the buyer left positive feedback for me. However, Paypal said that I never "collected" my funds within 30 days so they deducted it. However, I did collect the funds. They answered one of my emails saying that they would look into it but never got back to me and never answered any other emails. This has been going on since last year.

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