This blog will address the subject of PayPal dispute/claim emphatically and why we are implementing the Post Transaction codes (PTC). A chargeback is only included in the subject because many do not really know the difference, so we’ll address that shortly by referencing information from PayPal website.
What is the difference between a chargeback, PayPal dispute and PayPal claim?
A chargeback occurs when a buyer asks their credit card company to reverse a transaction that has already cleared. A buyer may file a chargeback with their card issuer based on credit card association regulations and timeframes.
A PayPal dispute is the first step in the PayPal buyer complaint process. This is when buyers and sellers can post messages to each other in the PayPal Resolution Center and try to find a mutually acceptable resolution to the problem.
A PayPal claim is typically an action taken by a buyer on the PayPal site against a seller, when the buyer has purchased an item and it either: didn’t arrive or did arrive, but was significantly different from the item description. Claims require PayPal customer support to render a decision either for or against the seller based on evidence collected from both parties. A claim can only be filed after going through PayPal Dispute Resolution in the PayPal Resolution Center.
Now, the similarity between PayPal dispute and PayPal claim is that PayPal is able to review the cases and make the final decision. But the buyer’s credit card company can chargeback or reverse payments even after months that the transaction has ended and PayPal can do nothing about this.
How You Can Be Exploited Fraudulently Through PayPal Claim/Dispute
We have recorded cases of freelancers who have exchanged quick digital service or rendered help to get paid and yet, lose their hard-earned money to those who make claims against them after successfully delivering their gigs. Usually, most of these transactions are not officially initiated through email correspondence or any media that could provide evidence that is acceptable to assist you in winning PayPal claim/dispute.
We find that most of these transactions are being initiated through social media groups or chat messages or voice calls before the transaction occurs. And when there’s a claim, the seller/freelancer has no evidence showing that the buyer is expressly satisfied with their delivery beside maybe a “Thanks for this”. The buyer could go-ahead to break a few settings on their website and do not want to pay extra fees fixing what they broke, or they may expect the seller to extend their service or delivery and yet, not willing to pay extra. Any push back from the seller could result in a claim that the delivery is unsatisfactory and thus, can lead to a dispute or claim with the buyer presenting false evidence against the seller.
For example, there is a case where the buyer outsourced service from a customer to a freelancer via chat messages on Telegram. Few weeks after the freelancer delivered service and got payment, another company involved with the buyer sent an email correspondence stating that service was never delivered despite sending payment previously, and this request was different from that delivered by the freelancer, the buyer intentionally opened a dispute inciting that the freelancer did not deliver service as paid while presenting evidence from the company who never received their service. From PayPal’s view, it looked like a direct correspondence between the company(buyer) and the freelancer who is unable to share the preview of his own response via email to the company showing that delivery was made. As the buyer received delivery via mobile chat, the buyer obviously won the case, robbing the freelancer of his earnings. We got to learn from a close source that the same buyer is notorious for such actions with more than aa few victims.
Use Your PTC (Post Transaction Codes)
Although a good number of members already refer to this as Payment To Customer, PTC is an identifier that is interpreted as Post Transaction Code. The entire code that appears as this PAYM.CONFD.ORDER.#XXXX where XXXX is the order ID.
Due to cases of people attempting false claim and dispute on legitimate transactions after closing sales, Post-transaction codes are designed to help the freelancer/sellers (payment receiver) to win false dispute cases when they reference the source of the transaction and pre-engagement agreement between the two parties before they initiate a transaction. First, we require the client/buyer (payment sender) to review and accept that the seller has done a satisfactory job or have met every requirement for the transaction and is expected to include the PTC code in his transaction while making payment to the seller. Once this is done, the receiver can have presentable evidence of correspondence on PEXBANK preceding the close of that transaction.
The buyer/sender should not send payments if the terms of the transaction are not met, and the seller/receiver should not accept the payment if the terms are met but the buyer/sender did not include the PTC code. Once PayPal reviews a claim on your transaction which involves your PTC code which is traceable to a commercial platform like ours, it becomes evident that the sender is a pretender and would prevent you from being victimized.