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by mzuvella 5021 days ago
'Won't hold their funds' is a reward? That should be the standard.
1 comments

That's not how chargebacks work and even PayPal doesn't have the ability to change that system. When someone charges back a PayPal payment, the funds are removed from PayPal's bank account and deposited to the cardholder's bank before PayPal even gets notified.

Their allowing you to keep the payment until the dispute is decided is actually PayPal floating you a loan on faith that if you lose the dispute, you won't have disappeared along with your balance to reverse it then. Of course, for disputes only within the PayPal system, PayPal's a bit safer not immediately reversing the payment.

Then why there isn't any opposition to chargebacks?

In Europe we just use wire transfer for all electronic payment. It's instant and free. There is no such thing as chargeback.

Because part of PayPal's service to their customers is that you can dispute a transaction and they will work to resolve it. It's one of the features that protects (and therefore attracts) consumers. Clearly, it causes negatives for sellers. It's a trade-off.
Consumers want chargebacks. They let you get your money back when you get scammed or your payment information is stolen. Does that never happen in Europe? Nobody ever takes your money then fails to deliver the product/service? You never have your information stolen and used to pay for something you didn't authorize?
>Nobody ever takes your money then fails to deliver the product/service?

Just call the police?

On auction sites there is also insurance.

>You never have your information stolen and used to pay for something you didn't authorize?

How? They would also need your bank account password and sms token.

Please don't play dumb; it's not the appropriate level of discourse here. Is your police department going to open an international investigation into how many USB cables a Canadian company shipped or didn't ship to you? You know that realistically, if you wire money to an account of someone untrustworthy, you have no recourse at all. There's no guarantee there's even an account on the other end to recover money from.

With credit cards, millions of people pay millions of merchants they have never done business with before while completely protected against fraud. The chargeback dispute process is completely international; the burden of proof is on the merchant no matter where in the world they are. And the protection is guaranteed for months, even if the merchant has disappeared.