Our investigation concluded that services providers are completely unprotected by PayPal.
“PayPal has no intentions to providing sellers of services with protection from chargebacks and will always refund the client – no matter how compelling or complete your evidence is”
In recent months Rao Companies Australia has partnered with a start-up and services provider named Infinite Web Solutions (IWS) based in India, which are targeting global clients who are seeking service providers who can fix their PC’s remotely.
IWS offers services from a single service of USD$99.99 to annual subscription with unlimited services for anywhere between USD$199.99 to USD$999.00 depending on the number of devices you wish to cover and the length. The higher end of he package covers 4 devices for a period of 7 years.
Naturally with such business practices and price points certain clients do seek a refund once their PC’s are fixed given their short term views combined with PayPals’ ever so customer focused refund policy.
Upon refund requests, IWS has ensured to protect itself by making clients sign a comprehensive Service Agreement and in-depth contract outlining that the refund is only available until IWS has yet to make any repairs. Once repairs are made the contract is final and non-refundable.
PayPal was provided all terms and condition and approved the business operations at hand.
The problems started once clients requested chargeback requests through their card providers. After a few clients were provided refunds by PayPal we contacted PayPal to enquiry as to why refunds were given to client even though receipts and signed contract where provided as evidence.
PayPal employees clearly stated that seller protection does not exist for service providers and nor does PayPal have any intentions to introduce such.
So whilst PayPal is happy to take fees and money for your services rendered it has no intend of protecting you from dodgy buyers or arguing your case.
Staff at PayPal extended to state that they would not even forward your evidence to card issuers who are investigating the evidence.
We understand risks and that PayPal is protecting innocent clients from predatory service providers but a genuine business that provides evidence must be protected likewise. Perhaps a step too far towards client protection from business by simply crippling service providers from doing honest business.
So there is no hope for service providers with PayPal and we highly recommend service providers to steer clear of PayPal.
Modern providers with more foresight like Stripe, WorldPay and many others realise that service providers account for much of the economy and have a far more business friendly policy.