Advice - PayPal Negative Balance

NikhilSingh25

NikhilSingh25

Galvanizer
A bit of background - My friend started an agency that manages creators and does pre and post production work, as a freelancer too. But sometimes it happens that when a new client gets his videos or thumbnails or whatever done and pays for it. after few days they request a chargeback from Paypal, And Paypal without even discussing this with us just refunds the money to the sender and deducts it from our Paypal account.

Now one of the Paypal account is in negative about 25k INR, What will happen if we just stop using that account, I checked online and in USA and nearby countries they usually sell it to debt collectors. Which sometimes they won't even bother collecting if the amount is low. So can you suggest what should we do, I'm not sure of the amount, but he has lost about 80k+ to these chargebacks.

And yes I have already figured out how to be safe from future chargebacks.
 
NikhilSingh25 said:
A bit of background - My friend started an agency that manages creators and does pre and post production work, as a freelancer too. But sometimes it happens that when a new client gets his videos or thumbnails or whatever done and pays for it. after few days they request a chargeback from Paypal, And Paypal without even discussing this with us just refunds the money to the sender and deducts it from our Paypal account.

Now one of the Paypal account is in negative about 25k INR, What will happen if we just stop using that account, I checked online and in USA and nearby countries they usually sell it to debt collectors. Which sometimes they won't even bother collecting if the amount is low. So can you suggest what should we do, I'm not sure of the amount, but he has lost about 80k+ to these chargebacks.

And yes I have already figured out how to be safe from future chargebacks.
Click to expand...
How to be safe from future chargebacks ?
 
If they user pays you
captivating said:
How to be safe from future chargebacks ?
Click to expand...
Option 1 - ask the user to pay you us friends and family, or
Option 2- Send the client a copy of rough invoice and asked them to sign it with date, which will have a simple lines that says I have received all the services I paid for in it's entirety.
Chargeback is not acceptable in option 1, and in option 2 PayPal will return the paid amount and charge the user if you send the copy invoice to their support.
 
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NikhilSingh25 said:
If they user pays you

Option 1 - ask the user to pay you us friends and family, or
Option 2- Send the client a copy of rough invoice and asked them to sign it with date, which will have a simple lines that says I have received all the services I paid for in it's entirety.
Chargeback is not acceptable in option 1, and in option 2 PayPal will return the paid amount and charge the user if you send the copy invoice to their support.
Click to expand...
In option 2 deficiency of service can be used to chargeback
 
Can't do much, PayPal is pain in the Ass for business, they refund the amount without any proof, All it takes is just a few click for the user to scam the business.
I have suggested to move to a better payment provider, will be getting new GSTIN soon. Hoping we won't have to face issues like this again.
 
Or just find better clients. Over time, you'll find someone willing to pay what you're asking, and they'll become repeat clients. But when you're just starting out, you'll get the odd one that'll file a claim with PayPal.

What worked for me is to make sure I send something in the mail to the client. Like a copy of the "work" on a pen drive, and I'll be sure to save the receipt of the courier and tracking. So if there's any claim, I'll have proof that I sent them something and it was delivered or still in transit, and PayPal almost always denies their claim. And I explain to the client why I'm asking for their mailing address. That a previous client filed a chargeback, and this is how I protect myself. If they're intending on being dishonest, they'll decline, and you're saved the hassle. These days, I ask for USDT exclusively.

"Friends and family" does not work with PayPal in India because you're forced to have a business account, not a personal account, or maybe that's changed.
 
rsaeon said:
Or just find better clients. Over time, you'll find someone willing to pay what you're asking, and they'll become repeat clients. But when you're just starting out, you'll get the odd one that'll file a claim with PayPal.

What worked for me is to make sure I send something in the mail to the client. Like a copy of the "work" on a pen drive, and I'll be sure to save the receipt of the courier and tracking. So if there's any claim, I'll have proof that I sent them something and it was delivered or still in transit, and PayPal almost always denies their claim. And I explain to the client why I'm asking for their mailing address. That a previous client filed a chargeback, and this is how I protect myself. If they're intending on being dishonest, they'll decline, and you're saved the hassle. These days, I ask for USDT exclusively.

"Friends and family" does not work with PayPal in India because you're forced to have a business account, not a personal account, or maybe that's changed.
Click to expand...
If I knew about chargebacks before, I will have set up some terms to keep the company safe. But I got to know about it just a few days ago. So now I'm working on it.
Will see what can be done about this situation.
 
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