PayPal chargeback fee scam complaint – PayPal now charges a $20 chargeback fee to the seller for each and every chargeback!

PayPal chargeback fee scam complaint

PayPal is scamming me and all its sellers with a new $20 chargeback fee scam!

I have noticed that as of 2010 PayPal’s newest policy is to charge a $20 chargeback settlement fee for each and every chargeback regardless of whether the chargeback is founded or not and regardless of the outcome.  It is charged each and every time a chargeback is filed regardless of whether the issuing bank charges one or not (I found this out by contacting the buyer and then contacting their issuing bank).

I also found that it is 100% illegal to charge this chargeback fee and then falsely claim that you are charging it because the bank did when in fact the bank did not.  That is a lie and fraud on PayPal’s part.   I feel as if PayPal has found a new revenue or profit center – charging ridiculous chargeback fees whenever and wherever possible.

I think it is just a matter of corporate greed and filth on PayPal’s part.  The management at PayPal just disgusts me.  I work very hard selling books and other items that I buy at garage sales and other avenues and this really costs me on my bottom line.  We all know that 5% or so of all internet sales are fraudulant and we lose all of that.



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Now we have to lose out an additional $20 for each occurance of a chargeback in that 5%.  That is quite a lot.  I bet you that for me alone with these new $20 per occurrence chargeback fees I must be losing $5,000 or more per year.  I bet you they are raking in millions of dollars from their sellers with these fees.

I want those monies for all the fraudulent chargeback settlement fees that PayPal has wrongly and illegaly charged to my account placed back into my account immediately.  And also don’t try to freeze my PayPal account like you did a few days ago in retaliation for my speaking up on the internet against illegal policies at PayPal – that is also 100% illegal. I know this occurred because my customers all told me the PayPal link and website wouldn’t let them purchase my items for those days.

I hope to see my wrongly stolen money returned from PayPal shortly as this is wrong and illegal. Maybe what I need to do instead of selling items on eBay is create a competing money exchange website that’s better than PayPal and put PayPal out of business for stealing from good sellers like me.


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3 Responses to PayPal chargeback fee scam complaint – PayPal now charges a $20 chargeback fee to the seller for each and every chargeback!

  1. Julio on January 28, 2011 at 9:29 am

    You are lucky – I got charged a $60 chargeback fee by PayPal! I even had proof the guy was sent what he ordered (USPS online tracking and delivery confirmation) and still lost my chargeback case.

  2. Nicole on April 15, 2011 at 5:56 pm

    Yeah, I had the unfortunate experience of having this done to me recently. I had someone buy 13 $3.00 items from me (individually…which should have been a red flag) and then a month later, the cc company did a charge back on all 13. So that’s $23 I’m in the hole for a $3.00 item that don’t even have anymore. Luckily, I have no bank account tied to that account, so they can kiss it where the sun don’t shine.

  3. tjcol on August 18, 2011 at 6:01 pm

    I had some little kid on ebay who apparently stole his father’s credit card, he purchased an item and then his father issued a charge back months later, after the kid had already left positive feedback and everything. I even had emails that I sent to paypal, where the kid said how happy he was that I sold the item for so cheap, and thanking me. and then follow up emails saying how he stole his dads credit card and was so sorry and he felt like an idiot, yet paypal not only gave the $5 back for the item, but then charged me a $20 fee….

    absolutely absurd.

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