I got a chargeback which I can't refund

Discussion in 'Server & Community Management' started by LeapingSpider, May 5, 2017.

  1. Hi! I own the server called Bedrock Network, someone donated $140 some months ago, but now he chargebacked all the money, since I have a lot of monthly subscriptions in the paypal account there is no money left at all, I decided to do some research and it seems that the guy that donated used his parent's account, I don't know if it was with their permission or not, but the chargeback reason is: "The cardholder doesn't recognize the payments", which if you think the literal meaning of the phrase, it's false. Of course the cardholder knows that some money was spent with his credit card, there's a lot of protection in banks which sends you tons of messages of every single penny you spend, so it's not fair to chargeback with that reason.

    I also did some research on spigot, and it seems that the best way is just to ban the guy and return the money, the issue is that... but a ban means nothing to me when we talk about $140, and I don't have the $140 to refund the payments, it may look as a few pennies for you, but I don't have the economical position to deal with this, it's not my fault that the parents doesn't moderate their children purchases, I also heared (it may not be legit) that he have spent a total of $500 (in this year) in minecraft servers, which $140 was from my server, I will do some research to see if I can find some servers who got donations (and maybe chargebacks) from this users, but that will not fix the things, neither a ban will do.

    I really need help, I don't have $140 to throw away :/
    There's something I can do?

    Thank you
     
    • Like Like x 1
  2. JamesJ

    Supporter

    Put simply, you need to find $140 to give back.
    You're not throwing away. Chances are the kid nicked his/her parent's CC/DC and paid without their permission. Not your fault, not the parent's fault, however, it's fraud to not refund it as they haven't authorised that payment.

    Be aware, too, if this is a chargeback and not a dispute (a dispute is for a PayPal payment, a chargeback is sent via the bank) you'll also get slapped with a $20 fee.
    You may hate PayPal for that, however the banks actually slap on a $100 fee, however PayPal reduce it to $20.
     
  3. latiku

    Supporter

    If applicable, you can use your server's no refund policy to your advantage.
     
    • Like Like x 1
    • Agree Agree x 1
  4. I will try to talk with their parents, and of course it's the parent's fault, i'm not a parent but it doesn't take years to teach a kid to not to steal.
     
  5. I will try, however I don't know if it's applicable since the reason of the chargeback is: "The cardholder don't recognize the payments" which is blatantly false, there is no way the kid could use a paypal account to purchase something without their parents being aware of the transactions, it's just false.
     
  6. Interesting. What if you have a solid refund policy though? I mean the kid, even with a stolen CD for example still accepts policies and terms of use.
     
    • Agree Agree x 1
  7. In my ToS says that if you present a dispute/chargeback in paypal you will be permanently banned from the server, also the chargeback will be denied presenting proof that the user haves his perks, however the chargeback reason is not related to the buyer not receiving his perks.
     
  8. Mind giving us a link to all legal documents the player accepts? Terms of use, privacy policies, refund policies, everything.

    Simply stating "you'll be banned on chargeback" doesn't help you in case of an actual chargeback. If you have a refund policy (that the user is then forced to accept) where you clearly state that the buyer accepts to not chargeback 'n shit like that, then as far as I know PayPal will use that to prevent the chargeback. I never had any so I don't have experience with them, but I do sure know that you need everything written down and you need to force people to accept policies.
     
    • Like Like x 1
  9. JamesJ

    Supporter

    No. A refund policy will not save you.

    Two main reasons. Just because you slap it in terms and conditions and they agree with it, does not make it legally binding. For one, you cannot override other laws, or human rights.
    Secondly, the bank has the final say in this. That is the bank's agreements. They want to keep their customers, and as such, 99.999% of the time will side with the their customer.

    No, that's completely not true.
    Just because you teach your kid not to do something, doesn't mean they wont do it.
    I can guarantee you have done stuff which you parents have told you not to.
     
    • Useful Useful x 1
  10. Of course I have, but I haven't robbed a single penny (well maybe some pencils at school) but how the hell the kid paid with the parent's account? he haves to know the password, and of course the parents gave the password to him which contradicts the chargeback reason.
     
  11. And if I use any paypal account, the owner will know it within a max of a week from the purchase.
     
  12. Since it seems that I don't have any legal defense, I will try to just talk with the parent to see if I can resolve this.
     
  13. This is a really shitty situation, I would contact the PayPal account holder, to see their side of the story. Maybe you could explain what happened, and how you don't have the funds to process the chargeback.
     
    • Agree Agree x 1
  14. If it clearly states in your policy that you don't refund, then don't refund and email them with your policy. IF they had read your policy, by now they shouldn't had done a refund request.
     
    • Optimistic Optimistic x 3
    • Funny Funny x 1
  15. Oh the memories... I once had a chargeback of my top donnor. The problem is the guy had bought over 30 packages and refunded all at once by 1st January 2016 (what a great way to start the year).
    It was by then my hate with PayPal started.

    30 chargebacks mean all money gone PLUS 20$ fee FOR EACH OF THEM. And it was just one buyer!!
    Result was my PayPal lost all the money, plus over 100$ negative balance because of the fees.

    I did phone, email them over and over. I was f* up. However one day by miracle, a PayPal agent gave my a follow up (not a regular answer, it was a few days after the regular answer to one of the emails) in which he refunded all the fees... I guess he must have felt sorry for me.
    Can you imagine PayPal doesn't refund you with the chargeback fees if you win the case? What a lost!

    It had an happy ending, but now I limit the amount of purchases per user ahah
     
    • Informative Informative x 1
  16. JamesJ

    Supporter

    Man, could you imagine if PayPal weren't so nice and sent you the entire fee that they get sent. Yeah, PayPal are definitely the arseholes in this situation, damn, they cut our fees by 4 fifths, aren't they such arseholes?

    No. PayPal gets fined $100 per chargeback. You get fined $20. PayPal has it worse, they do you a favour.

    Was the transaction sent from a PayPal account, or via a bank account? If the latter, you don't need a password... You can literally just get your parent's card and copy everything off there.
     
  17. I'm aware of that now, but by the time, I had no idea of it. But it's still a hell of a story, I mean it's just one buyer.
     
  18. What if you would use g2a pay? They're checking transactions a lot, and I don't think they apply charge back fees too(not sure). When I tried buying something from a store using g2a pay for $500 they called me twice to confirm my indentity and even thought I had tons of transactions on my account before.
     
  19. To view the balance nor you want to start a purchase you HAVE to login. After you're logged in you can do whatever you want; e.g. sending money, buying stuff and all the shit..

    My bank requires a 6 numberic passcode through SMS or just through ther app with a push notification, opens the app --> Enter my 5 number passcode of the app --> accept --> enter 5 number passcode and the transaction is finally put in the waiting list for being send to the receivers bank account. But I believe paypal should use a 2fa system for transactions like my bank does to verify that it's me and not someone else
     
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    • Agree Agree x 1
  20. JamesJ

    Supporter

    That's online banking...
    You use the CC/DC Number, CVC and expiry dates for online payments using CC/DC