Paypal and Worldpay
If you’ve purchased goods or services online before, the chances are you’re familiar with either PayPal or Worldpay. Both offer a secure method of sending money over the internet without having to reveal any of your financial information to them. In return, both services charge a small transaction fee to the seller for each payment made.
DisputesIn the event that a dispute arises after a transaction made through PayPal, there is a specific resolution process that should be followed before the matter can be referred to the claims department. Buyers can raise a dispute over a transaction in the following way: in the Resolution Centre, click on “open a dispute”. This will display any problems that the seller has posted about issues over delivery or availability of goods or services.If this doesn’t resolve the matter, the buyer can then post a dispute which will be notified to the seller by email. This enables the seller to respond and hopefully to resolve the matter amicably. If this doesn’t work, or if the seller fails to respond, the dispute can be escalated into a claim, which will be reviewed by PayPal. It is important to note that disputes can only become claims within 20 days of the original notification of the dispute. If the buyer fails to act in that time, the dispute is automatically closed.
ChargebackIf you pay for an item under £100 using a credit card, you can also request a ‘Chargeback’ from your card issuer. This effectively reverses a transaction that has already cleared. PayPal and Worldpay do not have anything to do with this – it is up to the credit card company to facilitate. Chargebacks are usually used in situations in which the buyer either hasn’t received the goods that the seller sold them, or someone has used their card to make the purchase fraudulently.
Chargeback can cause problems in situations where the seller has already posted the goods to the buyer, in which case the buyer must return the goods in a saleable condition to the seller promptly. It is possible to request a chargeback up to 120 days after the transaction date. This limitation period is extended to 180 days for international transactions. Sellers can however dispute chargebacks, and both Worldpay and PayPal say that they will try to help sellers in this situation.