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PayPal refusing to refund me seller fees after someone tried scamming me with a hacked eBay account??

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[OP]
Deal Addict
Oct 12, 2012
1935 posts
4363 upvotes

PayPal refusing to refund me seller fees after someone tried scamming me with a hacked eBay account??

Long story short, someone tried to buy some electronics from me on eBay. The day I was going to ship the item, the real owner of the account sent me a message on eBay asking me for a refund because they claim their eBay and PayPal accounts had been hacked and the fraudster was the one that bought the item.

Luckily, I hadn't shipped it yet, so I immediately agreed to issue a refund for the case on PayPal. Over a month passed with complete silence on the case and the money was still sitting in my PayPal balance (I wasn't going to touch it because I wanted it to go back to the buyer).

A few days ago, eBay had finally updated the case and taken the money from my balance. But they also deducted the seller fees I paid for the transaction, and also charged me a $20 CAD chargeback fee.

So basically I am out almost $70 even though I followed all of PayPal's instructions and agreed to refund the seller.

I messaged them asking why I am losing the seller fees because I am not at fault here, the buyer had their accounts hacked and I immediately agreed to a refund the same hour they requested it. They agreed to refund the $20 chargeback fee, but after several days of back and forth, they refuse to refund the rest of the $50 because the buyer had did a chargeback with their credit card.

How is this fair to me? I didn't even ship the item and I immediately agreed to refund the buyer! And now I am out $50 because PayPal was slow and didn't move the money from my account back to the original owner for over a month.

This is so frustrating! And I can't even find a customer service phone number for PayPal, all their customer service on their site redirects to their useless chat service, which isn't helpful at all because it's a completely different person responding to me every single time I reply!
23 replies
Deal Expert
May 30, 2005
47766 posts
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Richmond Hill
Sorry to hear about this OP. Something seems off here, though, whenever I had resolved a case in the past, and agreed to refund the buyer, the money was reversed right away. I'm not sure why it would have taken over a month.

A cancelled eBay order should also reserve the final value fees automatically, which goes on to your account as a credit for the following month.
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Nov 25, 2004
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contact ebay over there live chat as the phone support is down. just explain to them what happened they will refund u the final value fee no problem.

the paypal stuff u will have to contact paypal support for. they should refund the fees the charge back one they will probably want to keep
[OP]
Deal Addict
Oct 12, 2012
1935 posts
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aaron158 wrote: contact ebay over there live chat as the phone support is down. just explain to them what happened they will refund u the final value fee no problem.

the paypal stuff u will have to contact paypal support for. they should refund the fees the charge back one they will probably want to keep
I am in contact with Paypal support via their live chat. They already refunded the chargeback fee, but refuse to refund the seller fees which makes no sense.
[OP]
Deal Addict
Oct 12, 2012
1935 posts
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Jon Lai wrote: Sorry to hear about this OP. Something seems off here, though, whenever I had resolved a case in the past, and agreed to refund the buyer, the money was reversed right away. I'm not sure why it would have taken over a month.

A cancelled eBay order should also reserve the final value fees automatically, which goes on to your account as a credit for the following month.
I'm guessing it's because of the pandemic. If they hadn't taken so long to return the money to the buyer, they probably wouldn't have done a chargeback. But they did and now Paypal insists i should be on the hook for the seller fees...
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cursayer wrote: I am in contact with Paypal support via their live chat. They already refunded the chargeback fee, but refuse to refund the seller fees which makes no sense.
when u say seller fees are u talking about the 3% paypal charges for processing the payment or the ebay final value fee? if its the ebay final value u fee then u have to contact ebay they will refund it.
Deal Expert
May 30, 2005
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Richmond Hill
cursayer wrote: I'm guessing it's because of the pandemic. If they hadn't taken so long to return the money to the buyer, they probably wouldn't have done a chargeback. But they did and now Paypal insists i should be on the hook for the seller fees...
You have to be specific here - eBay charges final value fees (10% or less if certain categories with an eBay store), not Paypal. Paypal only charges the 2.9% + 30 cents transaction fees. Which one are you disputing?
[OP]
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Oct 12, 2012
1935 posts
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aaron158 wrote: when u say seller fees are u talking about the 3% paypal charges for processing the payment or the ebay final value fee? if its the ebay final value u fee then u have to contact ebay they will refund it.
Jon Lai wrote: You have to be specific here - eBay charges final value fees (10% or less if certain categories with an eBay store), not Paypal. Paypal only charges the 2.9% + 30 cents transaction fees. Which one are you disputing?
The PayPal 2.9% + $0.30 fees.

The eBay ones were removed immediately.
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cursayer wrote: The PayPal 2.9% + $0.30 fees.

The eBay ones were removed immediately.
those should have been refunded automatically as soon as the refund was processed.
[OP]
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Oct 12, 2012
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aaron158 wrote: those should have been refunded automatically as soon as the refund was processed.
As I explained in OP, they did not refund the seller fees and charged me $20 because the buyer did a chargeback with their financial institution. Now PayPal insists the seller fees are "non-refundable", even though I am not at fault here
[OP]
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Oct 12, 2012
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I know that. That is why I am so frustrated. I agreed to issue a refund to the buyer when they opened their case. PayPal never took the money from my balance for over a month. Eventually the buyer got fed up and just filed a chargeback with their credit card, and now I am out my fees.
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Nov 25, 2004
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cursayer wrote: I know that. That is why I am so frustrated. I agreed to issue a refund to the buyer when they opened their case. PayPal never took the money from my balance for over a month. Eventually the buyer got fed up and just filed a chargeback with their credit card, and now I am out my fees.
why didn't u refund before they opened the charge back?
[OP]
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Oct 12, 2012
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aaron158 wrote: why didn't u refund before they opened the charge back?
I did! When the buyer opened the case, one of the options was "Issue a full refund" or something like that. I chose that, but the money never went back to the seller.
[OP]
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Oct 12, 2012
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Jon Lai wrote: I think what you should have done is physically press the "Issue a refund" button yourself.
Does the money not automatically go back to the buyer if I agree to refund them when they open a case? I was under the assumption that giving the refund would be automated once I agreed to it... I recall there being something that said that once I agreed to the refund, they would take care of it.
[OP]
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Oct 12, 2012
1935 posts
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Jon Lai wrote: I think what you should have done is physically press the "Issue a refund" button yourself.
I looked at an image of the PayPal case that I sent to the buyer prior to PayPal taking the money from me.

Image

The language "You have provided a full refund" seems to imply that I had nothing else to do once I agreed to refund them. PayPal just never moved the money back to them.
Deal Expert
May 30, 2005
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cursayer wrote: I looked at an image of the PayPal case that I sent to the buyer prior to PayPal taking the money from me.

Image

The language "You have provided a full refund" seems to imply that I had nothing else to do once I agreed to refund them. PayPal just never moved the money back to them.
That's weird, it looks quite black and white. Sorry, I'm out of ideas.
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Nov 16, 2006
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Somewhere between Mi…
Just curious if the buyer was able to PROVE his account was hacked or whether he might have changed his mind about buying and concocted a hacking story? Don't even know how one would prove that he's been hacked...other than maybe sending the seller a "today" pic of a drivers licence with a different address than the paypal confirmed address...or maybe Paypal noticed a bunch of unusual transactions?
[OP]
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Oct 12, 2012
1935 posts
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reddyflag wrote: Just curious if the buyer was able to PROVE his account was hacked or whether he might have changed his mind about buying and concocted a hacking story? Don't even know how one would prove that he's been hacked...other than maybe sending the seller a "today" pic of a drivers licence with a different address than the paypal confirmed address...or maybe Paypal noticed a bunch of unusual transactions?
I don't know, the story didn't sound so suspicious. They said they gained access to their PP and eBay accounts and changed the email addresses associated which is why it took them a few days to notice.

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