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Refunding Multiple Sales

By Randy

I recieve around $15,000 per month in paypal payments. Two months ago 3-2005 we had chargeback activity on the account. Since we have much money flowing every day into this account we tried to issue refunds, tracking numbers, etc. We could not due this due to multiple purchases.

We called paypal and they said you can’t do refunds on multiple purchases or send tracking numbers. ??? Something new I guess. I really don’t understand this as all the purchases were from eBay and all the customers were trying to do is combine their purchases to save on shipping. Anyway it has become a big sink-hole for our business.

They have put a temperary hold on our account over $1,000 of chargebacks from customer’s that we can not issue refunds to immediately to their accounts for what ever reason. They did this all on Saturday – disrupting our incoming cash flow. So now we no longer have $15,000 a month comming in …all our auction templates state we take paypal however the click on button to pay can not be used.

I called them, as we have a special account manager. We were lectured. The simple fact of the matter is they had a computer glich in their system whereby we could not issue refunds or tracking numbers. They wanted us to email the authorizatioins to them, which we did and on partial refunds they refunded the entire amount of the purchase. So basically if the person buy’s 5 items from us is not happy with 1 of the items and we decide to issue a refund for that 1 item— paypal refunded the entire purchase amount. – Which created a new battle to get back the money for the goods the customer was happy with in the first place.

Note: I have been with paypal since they first started, received personally signed Christmas Cards from this company, have done 1,000′s of dollars of business over paypal. They are based in Omaha, NE … we are in South Dakota and I personally felt I could trust this company. My comments to my office staff is if they are doing this to us they are doing it to other sellers.

We will no longer take paypal payments due to fraudulant or premature chargeback activity that was not responsibly handled – Paypal’s role in internet trading basically is to provide good funds to sellers, they have limited our business by over $300,000 per year due to their click happy rush-to-judgment people.

We put our hand on the stove and it got burned. We remember this. The old saying you can screw me once but not twice. I told my staff last week 5-16-05 that the way they are handling our account is BS and this whole thing is going to explode … well it just did on 5-21-05

My only advise at this point in time: Is paypal is digging their own grave … go ahead and restrict the good sellers, suspend their accounts, limit their ability to accept cash flow, do what every you can to restrict payments comming into the account. Hello … money has to come in to go out? No money comming in – no money going out … Please note that we have in the past zerod out the account every night at these people are not a bank and the funds are not insured – so we take them out every day.

The sad fact of this whole matter is my family is educated and we know what is right and wrong – I’ll just kick this over to family members that are in the law profession or in public office.



Posted: May 8, 2012 at 6:25 am

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