Paypal or Alertpay chargebacks, what if the seller has already withdrawn money?

New Zealand
October 22, 2008 1:20pm CST
Well, we all know that we can do chargebacks with Payapl and Alertpay. There are certain restrictions like the transaction should have been made within 90 days and a more possibility of getting a charge back if the purchased item is intangible products etc. When we request paypal or alertpay a charge back, what if the seller has already withdrawn all the money that he had in his paypal/alertpay account? How exactly do you think that Alertpay or paypal going to refund us the money if the seller has no money in his/her account?
1 person likes this
2 responses
@maru_047in (1007)
• India
22 Oct 08
AS per my knowledge there will be the transaction receipt which tells that we have paid the correspondent for so and so. hence we can file a case if the money is not returned and if the product is not delivered hence there are few principles or description which is mentioned in paypal before logging a complain check that it is met. and there seem to be an option where you can with held the money until you receive the product. Thanks Maru don't forget to rate my comment.
@mirage108 (3403)
• United States
22 Oct 08
That works if all the money's are through paypal. When it is an outside credit provider, the person files a charge back through there credit card provider paypal at least has no choice but to refund the moneys. then your only resource is to go through the legal system.
@mirage108 (3403)
• United States
22 Oct 08
Well if there is no money in the account as a seller or a business person doing business and using paypal or Alertpay you need to have a backup funding source so when there is a charge back you have a way of covering it. They are going to get there money. Paypal at least is suppose to put a freeze on your money while they investigate. Where the problem comes is when they use a normal credit card to pay and they call there credit card provider to get a charge back issued. Paypal has no choice but to refund the money's immediately. You can file your stuff with paypal but they cant do anything as your money is all ready refunded, you might have to take them to court. Now on your end you will have a negative balance in your account until you bring the balance back to zero.
• New Zealand
22 Oct 08
The seller will have negative balance then? And what if he no more uses paypal? Then is it a loss for paypal? And what if the credit card isn't used for purchase and the funds that already were in the paypal account was used for purchase?