Question
***Coming Soon: PayPal Dispute Resolution Chargeback Coverage***
June 15, 2006 | 04:00PM PST/PT
Hi everyone, I'm Larry Friedberg with PayPal Trust & Safety. During Tuesday's keynote address at eBay Live!, Meg Whitman announced an important change that will benefit PayPal sellers. Beginning later this summer, PayPal will be offering chargeback coverage for sellers who use PayPal Dispute Resolution. This protection eliminates the "double jeopardy" situation that can happen when a sellers is involved in a transaction dispute.
Chargeback coverage will apply in two situations: if a PayPal seller resolves a dispute amicably with the buyer through PayPal Dispute Resolution, or if the dispute is escalated to a claim and PayPal finds in the seller's favor. In either case, if the buyer then files a chargeback with their credit card company for that transaction, PayPal will fully protect the seller from a chargeback. (Please note that if the dispute or claim hasn't been resolved prior to the chargeback being filed, the seller will not be covered against the chargeback.)
Our PayPal Dispute Resolution page will be updated in the next few weeks with more information about this extra chargeback coverage.
Sincerely,
Larry Friedberg
PayPal Trust & Safety Marketing
Please forgive if this has already been posted elsewhere.
From above and bold: "Please note that if the dispute or claim hasn't been resolved prior to the chargeback being filed, the seller will not be covered against the chargeback."
Okay, does that create one heck of a loophole? Once buyers get wind of this new change, won't they just initiate CBs earlier? Resulting in claims being filed earlier? Where does it end or have I misunderstood?
Answer
Okay, does that create one heck of a loophole? Once buyers get wind of this new change, won't they just initiate CBs earlier? Resulting in claims being filed earlier? Where does it end or have I misunderstood?
If you misunderstood, then so did I. My thoughts were the same as yours when I saw the announcement.
Sheesh. If they are going to throw us a bone, why can't it be one with meat on it?
Answer
Thanks for posting this Vampy--it does seem like it's not much of a help!