Managing Chargebacks on PayPal

[mandy]

Many misunderstandings persist around the difference between PayPal’s complaint processes and credit card chargebacks. The word “chargeback” is sometimes used inaccurately to indicate any buyer complaint against a PayPal seller. I’ve had several sellers tell me that they had a chargeback, only to later learn that the buyer had in fact filed a PayPal Buyer Protection claim.

To be specific, a chargeback is the result of a buyer contacting his or her credit card company asking to reverse a charge that had been placed on the card.  The credit card company then asks the buyer what kind of chargeback this is: did the buyer not authorize the purchase?  Did an item they ordered not arrive?  Or did the item delivered not look at all like the item they bought?  Most card companies immediately assume the buyer is right, so they grant the chargeback without too much rigmarole.  Then they inform PayPal that a chargeback has been filed.  PayPal passes along this information to you, and the payment is reversed...

full article: http://www.thepaypalblog.com/weblog/2007...harge.html