Paypal
Merchant Loses Chargeback Dispute on $5000.00 in Orders

I have used PayPal for my credit card processing for several years now. Just recently a customer ordered over $5000.00 worth of merchandise from my website over a period of one month. All orders shipped on time and were signed for by the recipient. 2 weeks after the last shipment, the cardholder called their issuing bank (American Express) and stated that they did not authorize the charges. When PayPal contacted us about the chargebacks, we provided them with the tracking information, the sales slip, and the signature of the person disputing the charges.

Several weeks later PayPal emailed me and stated that they had sided with the cardholder and would not reverse the charges in my favor. When asked to produce some sort of documentation from American Express, they couldn't. I was told that because the cardholder did not sign into PayPal, they could not prove that the cardholder actually made the charges, and they refused to send my paperwork and the tracking information from UPS and my website to American Express. So I now sit out $3600 for the original merchandise, plus PayPal is trying to collect $4500.00 in reversed charges and fees.

I don't see how this can be fair. They charge me a fee every month to process credit cards outside of PayPal, yet they refused to send my information on to the issuing bank and made such a decision for my business based on their own opinion.

Company: Paypal
Country: USA
State: California
City: San Jose
Address: 2211 No 1st St

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