Zero feedback buyers? - EDIT: buyer now claims the transaction was unauthorised

[foalpatrol]

I have over 50 feedback from buying but this is my first time selling on ebay.  A buyer with 0 feedback has bid on one of my auctions.  I'm a little concerned that I could be taken advantage of - especially since paypal holds the money for a certain length of time with new sellers.  Does the buyer get instantly refunded if he/she claims that the item was damaged or didn't arrive?  Any thoughts or advice?  Do I have any recourse if the buyer is dishonest?

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SO this is what happened next.  I get this email from Paypal:

We were recently notified that one of your buyers filed a chargeback and
asked the credit card issuer to reverse a payment made to you on 30/12/2013.

The buyer claims that this purchase was made without authorization to use
the credit card. Their credit card issuer needs additional information from
you about this transaction.

Kicking myself for not just removing the bid.  Now the item is in the post and I don't think I'll ever see it again or the money.  Anyone had this happen?

[ponylady]

I firmly believe that everyone has to start somewhere, so zero feedback bidders do not bother me. The worst case scenario is that they don't pay. In which you will just have to open a NPB case to get your fee's back. Annoying..but you will not be out anything except your time.

As far as PayPal payments from buyers they may hold them for up to 21 days. But you may be able to access your money sooner if item delivery is confirmed or if you receive a positive Feedback from the buyer. As long as there is no buyer dispute, claim, chargeback, or other negative action on your account, the hold will be released after 21 days. 

If by chance your buyer claims that they did not receive an item, the related eBay Buyer Protection case will be found in your favor if you shipped within your stated handling time and provided tracking information (with signature confirmation for transactions of $750 or more) before the case was escalated to eBay. To be protected, the tracking information will need to show proof of delivery from a shipping company that clearly displays the delivery status of the item as “delivered”, the date of delivery (which reflects that you shipped within the stated handling time), and the recipient’s address.

Now if they open an item not as described case, you should address the buyer's concern and offer a solution, such as accepting a return or offering a replacement or refund.  The choice is yours.  If the buyer isn't happy with your response, they can ask Ebay to review the case and make a decision. If they are asked to decide the case, they will review the item description and any other information about the item that the buyer and you yourself provide. If they can't determine whether or not the item matches the listing description, or if you have already offered to accept a return, they will ask the buyer to return the item to you.

In any event eBay will protect you, as long as you follow a few simple guidelines to protect yourself. I wouldn't worry to much, most transactions go pretty smoothly.

[foalpatrol]

Thank you for your detailed response.

I firmly believe that everyone has to start somewhere, so zero feedback bidders do not bother me. The worst case scenario is that they don't pay. In which you will just have to open a NPB case to get your fee's back. Annoying..but you will not be out anything except your time.

I fully agree with you, everyone has to start somewhere.  However, as a first-time seller, I feel I am more at risk than a seasoned seller - should something go wrong, I do not have the feedback and reputation to back me up.  The item I am selling is highly desirable which may attract undesirable people.  I disagree that a non-paying bidder is the worst-case scenario.  The worst-case scenario would be that the buyer lies and says it hasn't arrived or invents a fictitious problem with the item, claims a refund and then deletes his/her account.  I am curious to know if issues like this are common, as they certainly do happen.

If by chance your buyer claims that they did not receive an item, the related eBay Buyer Protection case will be found in your favor if you shipped within your stated handling time and provided tracking information (with signature confirmation for transactions of $750 or more) before the case was escalated to eBay. To be protected, the tracking information will need to show proof of delivery from a shipping company that clearly displays the delivery status of the item as “delivered”, the date of delivery (which reflects that you shipped within the stated handling time), and the recipient’s address.

As I live in New Zealand, where shipping costs are extortionate to say the least, I have not offered a tracked shipping option.  Even if I did offer a tracked option, I would not insist on using it as the cost of it is simply unrealistic.  Would receipts and a photo of the package count as proof of postage?

Would you ever contact a newbie bidder and ask them to verify that their bid is authentic?

[ponylady]

The reason I said worse case scenario was going on the thought you would be shipping with tracking.  A photo of your receipt is not going to be sufficient enough for eBay or Paypal if they open a Item Not Received case. It has to show the item was delivered or they will all most automatically win the case. I just had it happen and Ebay decided in their favor within 24 hours. It's important to cover yourself, even if you think your postage costs are high.  There is no way around it and like I already mentioned the buyer will win the case if the item does not show "delivered".

In regards to contacting your bidder, I see nothing wrong with it. It may help ease your mind.  But if you honestly are that worried, you can also just cancel the bid. It's not worth stressing yourself out over.   

[foalpatrol]

Thanks for your reply, it's helped me to sort things out in my head.  I think I will just leave it and see how it goes.  I have had another interested person contact me so it may not even go to the zero feedback person.  Also, all parcels sent from NZ have insurance up to $250 so even if they did say it didn't arrive, I probably wouldn't lose money, just time in filling out an application.  And in future I think I will insist that people with under 5 feedback purchase tracked shipping (even though I think it's extortionate).

[foalpatrol]

Bump.

[Fisha Seabreeze]

I hope things work out for you.

[foalpatrol]

So what has happened now is that I have had to respond to the claim and provide evidence of postage.  I fail to see what me posting the item has to do with the card issuer deciding whether or not the use of the credit card was authorised.  And now PayPal will take up to 30 days to assess the claim.  And if the use of the card was unauthorised, shouldn't the card issuer or holder have to wear the costs?  It's not my fault so why should I be punished?  Not that I believe for a second that this is a legitimate case.

The surname on the card and the surname on the delivery address were the same.  If PayPal finds a reason to uphold the chargeback, is the person required to send the item back to me?  And if so, at whose expense?

[ClosetAvalanche]

As Long as you have proof that the item was delivered to the address on file, they will rule in your favor.

*edited for use of all caps* PonyLady

[foalpatrol]

AS LONG AS YOU HAVE PROOF THAT THE ITEM WAS DELIVERED TO THE ADDRESS ON FILE, THEY WILL RULE IN YOUR FAVOR.

Please don't shout. 

This is not an issue of non-delivery or non-receipt of goods.  The issue in question is whether the card was used fraudulently or not.  I am hoping to hear from someone who has had experience with a chargeback due to unauthorised use of a credit card.

[ponylady]

foal this is why I stressed about shipping with delivery confirmation 

Unfortunately, as much as I hate to tell you without it no matter what they claim they are going to rule in favor of the buyer.

[ClosetAvalanche]

AS LONG AS YOU HAVE PROOF THAT THE ITEM WAS DELIVERED TO THE ADDRESS ON FILE, THEY WILL RULE IN YOUR FAVOR.

Please don't shout. 

This is not an issue of non-delivery or non-receipt of goods.  The issue in question is whether the card was used fraudulently or not.  I am hoping to hear from someone who has had experience with a chargeback due to unauthorised use of a credit card.

Who is shouting? I didn't realize my caps lock was on. I would be more concerned with the case rather than nit picking on someone who is trying to help.

[Kiwi]

An early warning to keep this civil and on-topic.

[StarFaerie]

The reason Paypal want proof of sending/delivery is that if you can prove it was sent and recieved, eBay seller protection often comes into play and eBay/PayPal will cover the amount for you even if the bank decides it was fraudulent and takes the money back off PayPal. It's one of the benefits of selling on eBay.

[Oneleo1]

Did they leave feedback for the item at all? That could help the situation if they did.