Ask questions and share tips/advice about managing Fraud, Disputes and Chargebacks.
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One of my friend recently moved out of New Orleans to Chicago and now he wants to sell his local online directory he created while he was here in New Orleans. I am more than obliged to buy this virtual product from him but if I pay him from friends and family account can I chargeback in case something goes wrong???
Yes, a friends/family or a gift payment is intended as a transfer of funds from family or friends to each other. This is the reason why there is no processing fee charged when payment is made through bank or PayPal balance. Considering that this is a "gift" payment, there is no Seller Protection as there should've been no exchange of goods or services. The other person can not open a PayPal dispute if the item was not delivered to them or the item is not as described as there is no "Buyer Protection". They can, however, open an unauthorised dispute or do a chargeback via their credit card issuer if they funded their PayPal payment this way and you would lose as you would have no "Seller Protection" in this case. You may also have a risk of having your account limited for using this payment option while you are selling goods as it is against the PayPal rules. Hope this helps!