Hello, I have had the same problem with and item that costs £2 and amount disputing is £700+. Contact PayPal and they say they would one refund the £2 BUT will charge you the bank charge back amount of £15!per transaction. This is absolutely mad that for a small transaction going to be changed £15 through no fault of my own. Taken products off marketplace now. It advisable if you have any resent transaction to issue a refund now because they raise the claim and issue the charge back. PayPal Also said that I am going to loose the case anyways as there no seller protection.

We've had some more reports about this sort of activity in the past few days, where small purchases are being contested for outlandish amounts of money in chargebacks. It is likely that some scammers have found a way to exploit PayPal's dispute system.

We do not process any of the transactions or refunds on our side, so we cannot take any action from here. The safe processing of online payments is PayPal's entire job and we'll have to rely on them to take care of this problem.

Any records PayPal might need about your original orders are available in your E-junkie transaction logs to help resolve these disputes.

So far it sounds like PayPal only reverses the original amount of the purchase in the end, but if they apply any other fees as a result of these scam chargebacks I'd recommend escalating the issue with PayPal since these scam purchases only occurred to exploit a flaw in their system.

I would say it's extremely obvious that any $800+ chargeback on a $3.00 purchase is wrong. PayPal administered that original $3 transfer. They know that transaction didn't involve nearly a thousand dollars, and your screenshot from PayPal says it was only $3.

The fact that so many of these cases are coming up in a short amount of time does suggest that some people have found a way to push bad chargebacks into PayPal's system as a scam in hopes that at least a small percentage of them go through before the trend is noticed. If it is not a scam and these mystery buyers actually paid nearly a thousand dollars on a $3 transaction that's still on PayPal's shoulders for overcharging them.

PayPal shouldn't be holding you accountable for any of this and I would personally recommend pressing them to return any related fees beyond the original transaction amounts.

We're going to bring up the matter of these excessive chargebacks with our contacts at PayPal. We've heard from a couple other sellers affected by this, and it seems absurd that you'd be held liable to cover any chargeback fees for what appears to be a scam exploiting some bug at PayPal's end.

Please email the affected Transaction IDs to support@e-junkie.com, and it may also help if you could also attach any screenshot(s) showing the excessive chargeback amount and original payment amount together on the same image (e.g. as @acadianfiddler provided above).

Sorry for any concern. You won't need to do anything.

We opened a ticket with PayPal MTS (Merchant Technical Support) to bring the matter to their attention, Cc:ing you and other affected merchants who reported the issue, to keep you informed of that ticket and PayPal's response to it. We also notified our contact in PayPal Partner Management, who referred the matter to their Risk department.

Just a followup to mention PayPal tells us they have taken action against the offending accounts but cannot divulge any further details, so we hope this has let you off the hook for any fees related to these fraudulent chargebacks.

We also received your email with further details about that latest fraudulent chargeback, so we've added that to the case we opened with PayPal.

Oh dear, how troubling. We will bring this up with our contacts at PayPal and have replied to your email to request further details that should help us try to sort this out for you.