I have been using Paypal for a few years now. First as a buyer and now, as a business owner. Let me preface this by saying that Paypal was not the only one to blame but if they keep allowing this to happen, then there is no hope for small business owners who provide services versus products.
Let’s call the perpetrator “Joe.” Joe purchased two tables for a charity gala worth $2,000 that we produced. Six days after the event, Joe issued a charge back claiming this was an unauthorized charge. Clearly, I was perturbed because this has affected the amount of donation that we had promised the charity to donate after all was reconciled post event.
At first I was hopeful because Paypal allowed me to show them evidence that this was an authorized charge. I sent them text messages and emails and photos of the event for proof that the gala happened and Joe and his 19 guests ate their dinner. Paypal said it takes 30 days for them to review the case but on the 15th day, they sent me an email stating:
As you know, one of your buyers opened a chargeback with their credit card issuer. This means that the buyer has asked their card issuer to reverse the money for this transaction.
We want to help you fight this chargeback, and are disputing it with your buyer’s credit card issuer.In the meantime, the disputed amount has been debited from your PayPal account because of the following reason(s):
– Intangible items are not covered under Seller Protection.
In addition, you have been debited a chargeback fee.
When I called them to rebuttal this unfortunate conclusion, I told them “Of course it was tangible! Joe and his 19 guests ate all their 20 dinners! Am I wrong?” The Paypal Associate calmly replied: “But it wasn’t something that was shipped.” – PAUSE RIGHT THERE!
You’re reading this… you mean to tell me if I had shipped their dinners then Paypal would cover this with insurance? So the difference between tangible and intangible is “shipping.” Complete nonsense but hey, what’s done is done!
Then the Paypal Associate continued “We have the best dispute team and they are working on disputing this with the credit issuer. It will take up to 80 days to find out whether or not we were successful with the dispute.”
I was speechless so I hung up!
I just felt like I was robbed! I work hard to do something great and help raise money for a charity and this is what I get in return? Joe pretty much screwed me and Paypal was not able to help with the situation? On top of that, I was charged $100 more because of a (false) chargeback? I’ve been doing events for almost 10 years and this was a first.
Don’t worry, As mad as I was, I now realized, why the CREDIT CARD AUTHORIZATION form exists and I will be using one moving forward!
Mae Day Marketing 
WOW!!! I have a feeling I know which group this is! That’s just wrong! Sorry that happened to you! 😦
Exactly… it eventually got corrected by that group but it was a stressful 3 weeks and Paypal charged me $100 for the chargeback…. smh – unnecessary stress. So yup, I gotta have people fill out a credit card auth next time. Who would think??? It’s a charity even!
WOW!!! To use the term you felt like you were molested is not only sad; it is offensive. For all the children that are; have been or will be molested; this crime is not a word to use in your ‘charity’ event.
I now sympathize with Joe. How offensive of you to make that statement. Shameful.
Hmm… obviously everyone has their own opinion but for you to take it to that level is also very offensive. I can only assume that you’re smart enough to know how the word was used as the whole story was unfolded for you. Molested doesn’t only refer to sexual acts. Synonyms include hassle, pester, torment, amongst others. But just to satisfy your offended feelings, I changed the word to “robbed” I hope that also doesn’t offend you and future banks. I rarely change anything because one person doesn’t agree but your comment really frustrated me. So I hope that suits your standards because Lord knows I am not writing to offend any children. Unless of course you are the “JOE” I’m referring to and just wants to take a stab (not meant to offend anyone with that word either.)