This is an excerpt from and article I wrote this summer:
When a customer disagrees with a charge on their credit card, they can request their money back. This is known as a chargeback, or reversal. Buyers have the right to request a chargeback on several grounds, the most common of witch are Duplicate Prossesing, Unauthorized Payment, and not as Described/Defective.
This is the beginning. The other thing that happens when a chargeback occurs is that paypay Debits the seller the transaction amount total, plus a fee. Say, for example, you sell an item for $50 and the customer is dissatisfied and requests a chargeback. You, as the seller, would absorb all the costs involved. Here it would have been the $50 plus any fees that PayPal incurred as a result of the fund reversal. PayPal also reserves the right to limit your access to your account, if determined necessary.
It could cost you a lot of money if you do not protect yourself.
The most basic way to protect yourself is to understand how you qualify for the seller protection policy. First of all, protection does not apply to intangible purchases(like ebooks for example), items delivered in person, and claims for items significantly not as described.But it does apply to Unauthorized payments and item not received.
Read the rest at
http://reviewteammagazine.blogspot.com/ ... chive.html. Didn't want to take up too much space...
Maybe it should be called PitPal because of all the damn pitfalls!