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trebuchet01 (nice nick) you really need to read posts if your gonna reply. I apologize if I was unclear.
1 - it's not illegal - and you agreed to it...
2 - there's a name for this, it happens every day thousands of times... It's called a charge back. Merchant processors have to stay under a certain percentage to keep their rates under contractual agreement, but this is completely legal and again, happens every single day with ALL processors (like paypal). Discover (or maybe it was Chase - it's been awhile since I've done anything with merc. process) card happens to be a pretty crappy one when it comes to things like this...
Sorry man your so wrong its not even funny. Have you ever run a business? do you KNOW what a chargeback is?
Its not easy to fight them UNLESS you keep very good records. We have a family business. WE HAVE NEVER ONCE lost a chargeback claim. We defeat every one of them.
We check ID compare signatures and we imprint physically every single card we have. So we can prove beyond any doubt it appeared to be the right person the physical card was actually here in the store and it processed normally (if it can not be swiped we do not take it) Not only do they charge a higher "hazard" fee for manually punched in transaction but there almost impossible to defend in a chargeback. I can even send the CC company a picture of the person if they want it.
EVEN if a fraud claim is PROPER we still can defeat the chargeback as long as we followed ALL procedures in our agreement and had no reasonable doubt as to the legitimacy of the transaction. IE in that case the CC company would eat it. For example if the Signature on the ID looks nothing like that on the card then you could lose the chargeback since you should have noticed such a large discrepancy etc.. Of it the Child uses the parents card you lose. Etc.. etc..
The way they are supposed to work is this. A legitimate chargeback is in place when it was a FRAUDULENT transaction.
Stolen card. Wrong amount charged. Fees added not greed upon. Double Charging. etc.. etc.. IE when there is a LEGITIMATE reason for the charge back.
Oh I won this on ebay and you know I just do not want it anymore IS NOT A LEGITIMATE REASON and is in DEFIANCE of the terms of the auction and the terms of the agreement you make with EBAY when you sign up.
NOW its pretty hard to fight a chargeback when you have NOTHING physical (such as with paypal on ebay) to make it worse they are not even DIRECT they are intermediaries.
Paypal got sued for this when they tried to make chargebacks illegal in there Terms of Service since it was a violation of there merchant agreement.
Its doable but its a LOT of legal work. That means someone has to be PAID (and well) to do this work. Its easier for paypal to shaft the buyer than to do the work to defend the PROPER LEGAL CHARGE.
IE buyers abuse chargebacks and its easier and cheaper for the companies to screw the vendor or seller than it is to fight the customer.
WE HAVE LAWS in this country. Your not supposed to be able to CIRCUMVENT those laws with a TOS.
The TOS is wrong. Period. Many parts of it are infact quite illegal Good luck getting it in front of a judge.
Remember the ONLY people these "rules" really affect are the very people who have NO real chance of affording to take legal action to resolve it.
Thats why we have to have such strict protocols when taking credit cards (in our business chargebacks are frequent. Husband buys something from us Wife see's it on the charge card husband has to admit he was in an "adult" store or cry foul and say it was not from him and wife pressures him so now he has to further the lie and process a fraudulent chargeback.)
The transaction on ebay was LEGITIMATE. It was valid and binding. If it had EVER gone to ANY court ANYWHERE in this country the judge would have lauged the lady out of the courtroom and said then you should not have bought it you dummy get out of here.
BUT this costs money. Paypal does not want to spend this money so they STEAL your money back and try to hide behind an all encompassing clause in there TOS.
TOS does not mean you can perform ILLEGAL ACTS. The problem is PROVING and affording to PROVE its illegal. Paypal knows your not likely to take the legal route for financial reasons hence they can get away with it.
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