Need advice on how to deal with chargeback

[shari_nat]

I just got notice of a chargeback from an item that was paid for on May 11. The buyer is claiming it was an unauthorized transaction. What exactly does that mean? I haven't had to deal with this issue before.

Also he left me glowing positive feedback about quick shipping and great item a few days later. I've never heard from him since.

I know we don't have the same type of tracking number as USPS but will the CP 'tracking' number do anything for me? I remember reading that as Canadians we are scr*wed when it comes to chargebacks, but I didn't pay that close attention as it hadn't happened to me before.

Thanks for any incite you can provide.

Shari

[youreinthebook]

Shari:

This oftentimes happens when a stolen cc number is used to purchase an item on eBay, in which case you are pretty much out of luck.

However...

If the buyer left you feedback then it's possible they simply didn't make the connection to the purchase of your item when they got the bill. The first thing I would do is try to contact them; pull their information and call them on the phone:

http://pages.ebay.ca/help/tp/questions/member-phone.html

Explain the situation to them, reminding them that positive feedback was left for you and see if you can't get them to call their credit card company back and have the chargeback reversed.

(If the telephone number for them doesn't reach them then you can report it to eBay as "false or missing contact information").

If this doesn't resolve the matter, but you are fairly confident that the member is the person who ordered the item, then there may be other ways to put pressure on them to pay up. You didn't mention the dollar amount involved or where the buyer is located and that will make all the difference on what next steps can be taken.

[scouttech-outfitters]

What country was the package going to?

I've only ever had that happen once before but to someone in China.

You can try to have a chat with them and let them subtly know you will fight the transaction, this usually scares them if they are honest.

Not sure what the value is on the item, but if its worth the effort to you and you shipped to the USA you can send all of that information to the FBI Online Crimes and Fraud Division. I've done this a couple of times for orders over $300 US but you do need to complete a couple of details. Any time I've done this I tend to get a phone call from the recipient and either a payment or offer to send the package back.

Regards,

-Darrell

[scouttech-outfitters]

Also was this a PayPal transaction?

[scouttech-outfitters]

On 2nd thought after browsing some of what your offering, unless it was a large order I definatly would not do the FBI think.

For a small dollar order all you can really do is submit absolutley everything you have pertaining to the transaction including any relevant email correspondence and follow the other advice from wonder

If you used private merchant processing like I often do, its not uncommon for people to not recognize the name appearing on their statement, especially if it differes from the eBay ID.

-Darrell

[futuretech_liquidations]

Shari if the item was paid for using PAYPAL and the buyers address is CONFIRMED then you are protected by the PAYPAL SELLER PROTECTION POLICY.

Goto the PAYPAL trasactions page for the item scroll down until you see SELLER PROTECTION and if the words ELIGIBLE appear the you are covered 100%.

And yes your CP tracking number is 100% good for proof of delivery.

The only case where you are NOT COVERED is if you shipped to and UNCONFIRMED ADDRESS then you are S.O.L. and need to write it off as a bad debt on your income tax filings next year.

If you need more help just email me directly at ebay@futuretechliquidations.com

Good Luck

TIM @ FTL

[shari_nat]

Thank you so much everyone!!

It was a golf shirt sent to the U.S. and cost $13.99. It was bought right out of my store, not in auction. The address is confirmed but the buyer is unverified on paypal. It was paid for using paypal. It was a very simple, easy and straigtforward transaction.

I've sent a copy of the feedback comment to ebay, emailed the buyer and provided the canada post tracking number.

Is that enough?

Shari

[coastwindchimes]

Sorry for what happened to you~ but nice that it is a small dollar amount. Also sorry if I sound like a bit of a broken record on this board~ but phoning is something that I have about 100 % success rate for straightening out problems.

It doesn't cost much to phone (and if, like me, you use Skype, it doesn't cost anything), and you can get quick results. Pull their contact information and give it a try. Good luck. Tim

[shari_nat]

Thank you Tim. I will try calling and see what happens.

Shari

[shari_nat]

I called the number on his contact information and it is no longer in service.

Now what? I know that's against ebay policy but who do I contact next?

Shari

[recped]

I guess you didn't like my advice on your other thread but I'll repeat anyway.

PayPal will not fight a $20 "unauthorized use" chargeback on your behalf. It's so much easier for them to just take the money from you. This situation is completely different from and non-delivery or not as described claim where it does not matter to PayPal who "wins". PayPal has already given the money to the credit card company it's not worth their time to fight to get it back as they would simply hand it over to you leaving them nothing for their efforts.

It doesn't even matter if the buyer is totally scamming, there is NO seller protection in any "card not present" transaction on eBay, with PayPal or practically any other situation. There are of course a few exceptions and there are steps one can take to achieve a reasonable level of risk management.
"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915

[youreinthebook]

Shari:

http://pages.ebay.ca/help/policies/identity-false.html

With any luck, eBay will suspend their bidding priviledges and they will submit a valid phone number with which you can try to contact them again.

[shari_nat]

Recped, I didn't intentionally ignore your advice. I'm sorry if you think I did.

I thought with the new information of an invalid phone number, ebay may do something but I see now that as a seller I have absolutely no rights and anybody can issue chargebacks and win.

Why aren't more buyers doing this, if it's that easy? It sounds like a great way to get free items. Maybe we should all try it.

Does ebay have a system to limit the amount of chargebacks one buyer can attempt?

This whole concept just feels so ridiculous to me.

Other than moving to the U.S. to ensure I can use DC and USPS tracking system is there any way to protect myself in the future? I only send to confirmed addresses. I can't send a $4 dollar shirt to the U.S for much more than I am already charging. I wouldn't stay in business.

Thank so much for everyone's help. I guess I'm just totally frustrated with the whole ebay experience. I'm trying to be the best seller I can and don't understand why someone would feel the need to scam me.

Shari

[youreinthebook]

Shari:

Chargebacks are a fact of life for a business who accepts credit cards whether through eBay or through their own merchant account. Brick and mortar stores have shoplifting, and we have chargebacks - it's one of those pesky costs of doing business.

However, I don't see that it can be determined yet that your buyer intentionally filed the chargeback for purposes of defrauding you. Right now you should continue to try contacting them via e-mail and eBay's contact member form, and file the invalid contact information report with eBay to try to get them to update their phone number. Also use Superpages.com to try to see if they have their new phone number listed there. When you exhaust efforts to contact them, or contact them but fail to get them to reverse the chargeback, then THAT would be the time to consider that they may have filed the chargeback with intentions to steal from you.

Although chargebacks are a loophole that could allow buyers to steal goods it doesn't have to be that way if business owners are diligent and file reports with the agencies that accept them. In this case, the FBI and USPS. Although it's unlikely that either one of these agencies will get your money back for you, it places your buyer's information in their databases. If you buyer has a habit of doing chargebacks then your complaint could assist building a record of repeated complaints against them that can get them investigated and possibly charged. The only thing that's certain is that if nobody files the reports then it's guaranteed that chargeback abusers will carry on doing it.

It could be argued that $20 is too small an amount to make a fuss over, but if your buyer does indeed have a habit of doing them that may be exactly what they are thinking and why they do it -- they figure no one will take them to task over such a small amount. That's why it's really important to contact them one way or another -- when they find out that someone WILL bug them for such a small amount and even be willing to try to get their eBay privileges revoked it may make them think twice about trying to make a habit out of it.

Also, go back to the feedback you left for them and make a follow-up comment stating that the transaction resulted in a chargeback. Don't state the buyer did it intentionally or anything like that. You don't really know that for sure so just state the facts as you know them as of now.

The pages to file complaints with the FBI and USPS are here:

http://www.ic3.gov/
http://www.usps.com/postalinspectors/fraud/MailFraudComplaint.htm

Also, in the U.S., filing a complaint with a person's local Sheriff's office occasionally results in someone from the office actually calling or visiting them in person to talk to them about it. Obviously that would be the best-case scenario in terms of making an impression on your buyer.

Hopefully by now you can see that we aren't completely helpless when it comes to things like this and if we are just a little persistent we can make chargebacks something buyers won't resort to without a second thought.

Hope this helps, good luck.

[shari_nat]

Thankyou wonderlandartifacts!! Your advice is so kind and helpful. I'll look into all of that as soon as I can. I really hope I am not being defrauded and its just some kind of mistake. It would restore my faith in humankind again, lol.

I'll let you know what happens.

Shari

[shari_nat]

Sick of me yet?

Well its getting a bit more suspicious. Since yesterday, he's deleted his contact information.

I did a reverse search on his phone number and address. The address is for Signet Heatlh Corporation, in Denton Texas. The phone number he used was registered to someone in Arlington Texas and there is nobody with his name in the state of Texas.

I know I won't get my money back, I'm just curious about what's going on.

Thank you all for putting up with me.

Shari

[youreinthebook]

Well unfortunately it looks like you've run into someone who deliberately meant to defraud. It could also be an account that was hijacked by somebody else but who knows?

Luckily it was for a relatively low-priced item. It really doesn't happen all that often for sub-$20 items. I've had it happen once in five years of active selling.

It would still be a good idea to report the invalid contact information to eBay to try to get the account locked down and also to leave follow-up feedback indicating that the transaction had a chargeback.

Cheers,
Ernie.

[shari_nat]

Thanks Ernie!!

You've been incredibly helpful! I really appreciate it!

I checked out your store too. Great stuff!! I may buy some T's for my husband.

How have you managed to keep 100% feedback?? I am so impressed. I think you are my new hero.

I left follow-up feedback and reported the invalid phone number a couple days ago.

Thanks again,
Shari

[youreinthebook]

Well, the 100% feedback status I think is a bit of luck in not running into a truly difficult buyer! I think there have been a few close calls, but I've been able to calm those customers down by just communicating well and not taking it personally.

Every Christmas season I actually expect to receive one or more negs from buyers who buy items after my posted Christmas mailing deadlines and get they angry because the item arrived after Christmas. So far no one has actually left a neg because of it.

Ernie