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Hosts Marking Hosting as a Good versus Service in PayPal? A New Thing?
MTUser2012
Member
I recently lost a PayPal dispute with a shared hosting provider because the provider had coded the service as a good. I couldn't return the "good" to India. So I got my money back from Amex.
Is this a new thing with providers? I would think it is a dumb move. If you lose a service dispute, my understanding is that the host isn't penalized by PayPal. The host is just out the money paid by the customer. But, If I as a customer lose the PayPal dispute (because I can't return the service) and then file a chargeback, I'll win that and then Paypal hits the host with a chargeback fee. So the host is out the service fee AND the chargeback fee.
It doesn't make sense to me as a tactic. What am I missing?
Comments
Not dumb, it's a way to try to protect from chargebacks.
Or, people could just do proper audits on paypal/CC payments but heaven forbid.
Francisco
Wouldn't they need to supply tracking info ?
$100 chargeback, $0.30 stamp.
Francisco
Lmao. True. But sending from india to another country and delivery confirmation isn't cheap either ?
In India, PayPal doesn't have authority to keep money in their wallet. As per Reserve bank mandate, the money is withdrawn automatically to their bank account. I mean the whole amount.
Also it's not easy for PayPal to hold back that amount from seller's bank account.
They could have done it easily, if it's a linked credit card instead of bank account. But in India, cc users are very less.
Not 100% accurate. PayPal can't hold money that's true.
But if a seller lost dispute battle then PayPal will negative the balance in their PayPal accout
So next time when the seller receives any mone from new sales, PayPal will deduct the pending negative balance from that amount.
Yes. You are right. A couple of such events will force PP to lock that account even.