Home Forums WC Vendors Pro Support Liability for refunds/fraud through PayPalAP and Stripe Gateways

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Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #56568
    Dan Feeley
    Participant

    Hey there,

    Just trying to wrap my head around this. I’ve read from other forum posts that the liability using the Stripe Gateway is between the seller and the buyer. We (the website marketplace folks) are not liable. This is good.

    What about PayPalAP? It looks like chained payments would cover this as that section clearly shows who is the vendor (primary) and who is the marketplace (secondary) in the setup. But WC Vendors doesnt support chained payments. Instead we are to be using Parallel payments.

    In my tests with Instant Pay I can clearly see both parties are involved in the transaction. But who is declared Primary party? Who takes on the liability for refunds or fraud issues in a PP process?

    Now, what if I decide not to use Instant Pay with PayPalAP and I decide to pay weekly or monthly commissions. Doesn’t that mean that I am really 100% liable for the transaction since the transaction on Paypal is from the seller to me, the marketplace.

    Any feedback on this would be helpful.

    Thanks!

    #56571
    WC Vendors Support
    Participant

    Instant pay vendors = vendors responsible for chargeback

    Otherwise, after checkout, it doesnt matter because after checkout isnt when someone got paid, who gets paid at checkout eats the cake.

    #56574
    Stefan Bolboceanu
    Participant

    Hello Ben,

    Sorry if I jump in this post, but I was thinking about this for a while…From your above statement, I understand that the platform is not responsible for refunds and chargebacks ONLY if the commissions are paid instantly. In any other case the platform is liable. Can you please confirm?
    Also, if a buyer purchases two items for two different vendors in the same order and will have issues with one item/vendor; the buyer raise a complaint with the credit card company or with Paypal if doesn’t find any agreement with the vendor. My question is:
    -If the commissions are not instant, Paypal or the credit card company will block the whole amount of that specific transaction or just the cost of the item for which the customer raise the complaint? I hope it makes sense…

    Cheers
    Stefan

    #56576
    WC Vendors Support
    Participant

    Can you please confirm?

    Common sense confirms this. At checkout, WHO GOT PAID? Did the vendor get the money instantly? If yes, then they are chargeback liable. If the ADMIN gets paid the money, and the ADMIN MANUALLY OR SCHEDULED PAYS VENDOR LATER, then the admin got it at checkout and admin owns the chargeback liability. This is 100% applicable to PayPal, and Stripe.

    Also, if a buyer purchases two items for two different vendors in the same order and will have issues with one item/vendor; the buyer raise a complaint with the credit card company or with Paypal if doesn’t find any agreement with the vendor. My question is:

    Ya, chargebacks are not for an entire order, if you dispute a charge for part of an order, that goes to that vendor. PayPal knows who did what and so does Stripe, becuase we pass them all that data at checkout. If the commissions are not instant, admin got paid, and admin owns the entire cake and all liability for it.

Viewing 4 posts - 1 through 4 (of 4 total)
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