Hubby figured out a trick on refunds with Paypal

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  1. I have no idea if this has been discussed, but hubby sells with no refunds. A guy bought an item and changed his mind. He threatened to file a claim. Buyer was rude, difficult and swore he would not send hubby's item back unless hubby paid shipping.

    Instead of hitting Refund, Hubby went to Purchase and sent the guy his money with the item in the description. That way, the buyer had to send hubby the item and got hit with Paypal fees to boot. And if difficult buyer didn't send the item, then hubby could file a claim against him.

    Has anyone else thought of this? Done this? It sounds genius to me.
     
  2. Wow! How smart!
     
  3. Ssshhhhhh! If ebay finds out they'll put an end to it somehow. Good for you and your DH! The rest of us should try this next time!
     
  4. One time when I returned an item that was not as described, the seller refunded my money like this and I was stuck with the fees. I was not happy. In this case, I think the seller just didn't know the correct way to refund.

    This doesn't sound like a technique I would ever use. In my listings, I don't usually accept refunds, but if a buyer complains, I almost always offer to take the item back. In no circumstances will I ever refund the money before I receive the item. I don't know why your hubby would feel threatened enough to do this. How damaging would it be to him to let the buyer file the claim? He could report the buyer to ebay for the threats.
     
  5. The part where the money is refunded before getting the item back didn't sink in with me when I read it earlier. Now it doesn't sound like such a good idea. I would never consider refunding someone before getting my item back!
     
  6. I don't see how this prevents the buyer from filing a claim on the original payment? If this happened to me, I would refund your husband's payment and open a claim on the original transaction.
     
  7. ^thinking the same
     
  8. #8 Oct 5, 2012
    Last edited: Oct 5, 2012
    It sounds frankly misguided. Refunding someone who hasn't returned the item leaves a seller wide open to fraud.

    What if Paypal goes after the buyer (who is now depicted as a "seller") and that buyer explains he/she was actually the real buyer, and has proof of this deception from the original transaction? The original buyer now holds (1) the item and (2) the payment for it, coupled with (3) evidence that hubby has played a trick on Paypal.
     
  9. What if the buyer does a SNAD on the original eBay auction? Wouldn't you be out of twice the money if PayPal sided with the buyer for the original transaction? Because the "Purchase" transaction that follows is not the original eBay transaction, basically.

    I would not refund, just let the buyer file a claim. I think the buyer would have to be responsible for paying the return shipping according to the rules if they open a SNAD, unless it is already built in the refund amount.
     
  10. Your DH also has the original paypal fees to cover too as when you use the refund button then PP return the fees they charged through the refund. So he's actually refunding at a loss to himself.
     
  11. When you refund on PayPal, they reverse the fee, BTW...
     
  12. not smart at all. If ur hubby hits claim he can hit claim on the other payment hence you got 2 cases. Not worth the hassle.
     
  13. I am not so sure I would recommend doing this. Unless you refund from the original payment, paypal won't recognize the refund you sent through a 'purchase'. The buyer could still open a claim through the original payment and possibly end up with two refunds. You husband would then be stuck having to file claim through the 'purchase payment' to get that back. This could be a hassle. The buyer may be vindictive, especially after getting hit with fee's on his refund, and file the claim on the original payment, just to be difficult. This has bad news written all over it.
     
  14. When things don't go your way you still need to play by the rules and not make up your own. That type of refund is just plain wrong.
     
  15. OP hasn't been back, maybe because of all the negative feedback? OP how has the transaction worked out doing it that way?