solved Foxycart/Paypal - Chargebacks and Disputes - How are They Handled?

Ken Rich
Ken Rich
@ken-rich
11 years ago
926 posts
Just a quick question before I set up my shopping cart enabled quotas. I need to make sure I am understanding this correctly.

With the PayPal module, my current understanding is that all transactions go through the member's own Paypal account. In that sense the site owner is divorced from all responsibility. So if they fail to ship, it is the member (who sold the item) who is held accountable. Also, if they ship but there is a chargeback, it is they who are responsible to return the funds. Is that correct?

I am unsure how those two scenarios would play out, if I enabled a quota to use the Foxycart module. To save me from sifting through reams of help files, can someone answer these two quick questions:

1) With Foxycart, if the member fails to ship, but pocket the money, who is held responsible and forced to pay back the money, them or the site owner (me).

2) If a shipment is made, but some time later there is a "chargeback" due to some sort of credit card issue, who is forced to return the money and eat the loss on the shipped items, the member who made the sale, or the site owner (me)?

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I understand that a delay can be set in the releasing of funds to the member making the sale, but I have been told by someone experienced with ecommerce, that chargebacks can occur even months later. So I'm a little bit nervous to enable the Foxycart for members. Not unless there is some sort of built in insurance, or these scenarios have been anticipated and the site owner is protected by design.


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Ken Rich
indiegospel.net

updated by @ken-rich: 10/24/14 01:39:34PM
brian
@brian
11 years ago
10,149 posts
Ken_Rich:
Just a quick question before I set up my shopping cart enabled quotas. I need to make sure I am understanding this correctly.

With the PayPal module, my current understanding is that all transactions go through the member's own Paypal account. In that sense the site owner is divorced from all responsibility. So if they fail to ship, it is the member (who sold the item) who is held accountable. Also, if they ship but there is a chargeback, it is they who are responsible to return the funds. Is that correct?

I am unsure how those two scenarios would play out, if I enabled a quota to use the Foxycart module. To save me from sifting through reams of help files, can someone answer these two quick questions:

1) With Foxycart, if the member fails to ship, but pocket the money, who is held responsible and forced to pay back the money, them or the site owner (me).

2) If a shipment is made, but some time later there is a "chargeback" due to some sort of credit card issue, who is forced to return the money and eat the loss on the shipped items, the member who made the sale, or the site owner (me)?

-------------

I understand that a delay can be set in the releasing of funds to the member making the sale, but I have been told by someone experienced with ecommerce, that chargebacks can occur even months later. So I'm a little bit nervous to enable the Foxycart for members. Not unless there is some sort of built in insurance, or these scenarios have been anticipated and the site owner is protected by design.

Refunds and Chargebacks are not handled by Jamroom - they need to manually be handled by the site owner (or whoever received the money). There are just too manu "variables" when it comes to chargebacks or refunds to automate it reliably.

It's important to understand that with FoxyCart, all money goes through you, so:

1) If you allow your members to sell physical goods, and they pocket it without sending the item, you will need to refund the user (since the money came to your account).

2) Again - you would need to refund the money from your account. However, if you have not paid out your profiles at this time, you can remove that sale from the user's (who is selling it) account so they would not get the money.

So I would recommend only allowing profiles and users you trust to ship physical products, since you do run the risk of a chargeback (although it's probably minor).

Hope this helps!


--
Brian Johnson
Founder and Lead Developer - Jamroom
https://www.jamroom.net

updated by @brian: 09/20/14 08:00:42AM
Ken Rich
Ken Rich
@ken-rich
11 years ago
926 posts
Thanks Brian - that just saved me loads of time and possibly some future grief. Much appreciated.

My solution, Paypal for most members, Foxycart for the site itself (and a few trusted people). I am going to purchase the Paypal module to implement.


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Ken Rich
indiegospel.net
brian
@brian
11 years ago
10,149 posts
Ken_Rich:
Thanks Brian - that just saved me loads of time and possibly some future grief. Much appreciated.

My solution, Paypal for most members, Foxycart for the site itself (and a few trusted people). I am going to purchase the Paypal module to implement.

No problem - that sounds like a good solution ;)

Thanks!


--
Brian Johnson
Founder and Lead Developer - Jamroom
https://www.jamroom.net