Lost $1050 on eBay Due to 'the Buyer Did Not Recognise The Transaction' on eBay, eBay Refunded The Buyer, What My Options?

Hi, I recently sold a second hand high valued item on eBay worth more than $1000, after sending the item in registered post, after the buyer received the item, they opened a case on eBay saying: 'the Buyer Did Not Recognise The Transaction' and opened a dispute. eBay asked me to upload a tracking which I did again after loading it in the original transaction page.

Not long after, I got an email from ebay saying:

''Payment dispute details

Status: Closed

The payment institution has decided to side with the buyer. eBay refunded the buyer for the dispute amount and deducted the funds from you. The dispute fee of $22 was charged.

When I asked ebay why I lost the case as I uploaded the tracking number on eBay. eBay said the decision is in the hands of the Buyers Payment Institution.

I then asked for an appeal on eBay Live Chat, the lady said the case is NOW on appeal and I should be given an answer within 72 hours. A few days later then when I asked again how is the case going, eBay's Live Chat agent said there was no appeal on the case and she can help me to open an appeal…..WTF!

To give you a more understanding on how everything unfolded, this is what's happening:

  1. Sold an item on ebay, buyer paid
  2. send two email through eBay system indicating when the item will be sent and once sent tracking will be uploaded (No reply as this happens a lot so I didn't think too much)
  3. Sent the item using Australian Post Registered mail with Signature on delivery
  4. Item received 2 days after as we are in the same city
  5. 1 day after the item is received, the buyer opened a dispute on eBay saying Transaction not recognised
  6. Contacted eBay and uploaded the tracking to dispute the transaction to prove I have sent the item out (Allow me to explain this: The tracking online by Austpost will only show the delivery suburb not the name of the person who signed for the parcel or the full address it was sent to even with signature on delivery)
  7. eBay sent me an email 3 days later indicating 'The payment institution has decided to side with the buyer. eBay refunded the buyer for the dispute amount and deducted the funds from you. The dispute fee of $22 was charged' So I lost more than $1000+ on this whole transaction
  8. Spoken to eBay live chat and was promised an appeal will be lodged on my behave and not too worry, everything will sort itself out within 72 hours
  9. After 72 hours I contacted eBay Live Chat again and they said it appears to be no appeals on their system, which mean the case is still closed and I lost my money. WFT! After spoken to them again and again they keep direct to eBay links which doesnt help me at all to get the money back.

eBay is pretty much at a dead end here…….

The buyer is in the same city as mine, what are my options here?

Give the buyer a ring and ask to have the item back since now they have been refunded? Sent the buyer a Letter of Demand asking to have the item returned? Go to the small claims tribunal directly against the buyer?

Many thanks

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    • +11

      So you do the reverse charge from…. yourself? Who do you think pays?

      • +1

        that was the funniest shit i've read all day im so creasedd i gave him an upvote and bookmarked it

      • -1

        Then contact eBay and tell them your scamming yourself!

    • +1

      😂 😂

    • +1

      what did i just read?

  • +1

    First thing id do now is CALL eBay, dont live chat, dont email etc.. I've had shitty support multiple times as a seller with similar outcomes against me. Though each time ive called them and explained everything, they have always looked into it and ruled in my favour. There is a special email address they get you send your proof to, and you just add the ref. Number from your call..

    This bs is why I'm using a separate bank acct just for ebay now, as soon as i receive funds i empty the acct.. unfortunately ebay system sucks for selling now.. i used to sell stuff for free with the gumtree promotions etc, but since this new system they still charge the massive fees and it takes like 2 months to get the fees reimbursed (after many many chat sessions)

    • Do you know this special ebay email address?

      • You need to call them first. They won't even look at it if you don't use the format they tell you.. but don't bother with email/live chat etc you really need to call them to get someone looking into it and they'll give you the email address

        • So correct, I wouldnt even go through the Live Chat now its just not very helpful as many information we ozbargainer knows more than them…..lol

  • You have the delivery address. I'd be showing up on their doorstep with a baseball bat in hand, asking wtf is going on..

    • And if the buyer refuses to budge or even talk to you?

      • That's what the bat is for, I'll let it do the talking instead.

        • +3

          And whack yourself to jail for $1000? Are you sure? I think you can try to intimate the buyer a bit but actually using that bat sounds like a very bad idea.

          • @truetypezk: When the police show up, tell them to arrest the scammer as well.

            • +1

              @mrvaluepack: You might have to try and prove they are the scammers in jail. Even if you finally managed to do it, you would have spent much longer in jail than 1000/min wage which is merely 40+ hrs.

          • @truetypezk: Do you want your $1050 back or not?

    • +1

      Planning to take a day off to do that this week. Maybe even call a sick tomorrow and trying to sort this out

      • So how did it go? Give the guy a good talking? Or too scared to confront him….?

  • Used to be a featured seller on eBay. In this case you should be covered by eBay seller protection. Live chat is atrocious right now. It's happened to me many times without signature but as long as it says delivered they should have your appeal granted.

    • +2

      I think you are talking about item not received disputes raised via eBay. Unauthorized transactions raised via credit card disputes are almost impossible to fight and win. The only recourse is to claim compensation via seller protection.

      I have completely stopped selling on eBay after the managed payment kicked in. I feel eBay only works for professional/large sellers who have a budget for these kind of fraud losses. For smaller sellers or personal sellers you are just waiting to be scammed:)

      • The thing is its hard to know who or which item people will likely to scam me with, hence its hard to put a price on it. Thats why for smaller items if they are not happy or whatever I just block them and refund them. Not much I can do to be honest.

  • +1

    Awaiting an update - been to the house and asked for the person and an explanation would be my first step and I’d record the conversation

    • Yes couldnt do anything today, only had 20min break among other things at work. Monday is never a good day to do anything private. Will update asap.

    • Recording the conversation is generally illegal unless you have their permission

      • depends on state.

        • yes indeed. I had a post sometimes back which had lots of discussing as well

  • +1

    Honestly sorry for your loss but this should be another reminder for people to not sell expensive items on eBay. eBay will always find a way to side with the buyer, and there are a few tricks to scam items even with tracking. + signature.

    • yes be careful when selling, document everything

  • Just a few questions to see what other options you have.

    1. How were the funds processed? Bank transfer? PayPal?
    2. Have you tried calling ebay by phone?
    • I dont know how its processed as its managed payment at the moment. eBay calling not yet as I been busy with work all day.

      I will update this asap.

      • Ebay told me they had split from Paypal. I had bought 450 Items with 100% rating but at the end I have received too many faulty items out of China and one seller admitted he had ripped me off but ebay simply used javascrip to hide the complaint button. Now I have to buy things via Afterpay, it is a darn pain.

        • You can still buy with paypal

          • @USER DC: You can certainly use PayPal still when buying, which gives a bit more protection than just using credit card I think

  • +1

    Name the buyer's username, so we can add it to our block lists?
    I've had a few assholes on ebay waste my time/money recently.

    • they just open a new account and presto!

      • +1

        Yeah but I'd cancel any expensive transactions with low feedback accounts :)

  • +4

    Oh god! WA just announced full lock down. Wont be going anywhere now!

  • +2

    had been a seller on ebay selling mobile phones. Trust me, ebay always sides to buyer.

    It makes you think only buyers are their customer, but forgetting the sellers contributes more to their benefits.

    • +2

      I never sell any phones even second hand ones on eBay. They can claim anything once received and there is nothing you can do about it as its your words against theirs

  • Have you tried contacting the buyer on ebay? Just wondering what ebay told the buyer about the item that was delivered to them. Surely not to keep it

  • +1

    Best of luck, OP. The few times I’ve considered selling on eBay I always had a voice in the back of my head saying just do it on FB marketplace instead with cash on delivery.

    I’d always heard horror stories of eBay siding with buyers regardless of the effort sellers go through. I guess your situation further solidifies my understanding.

    • Make sure you contact the buyer first before sending out to at least can dispute later if they say I didnt buy this

  • +2

    Leak em.

  • +1

    You could consider doing a bit of digging and find out who the buyer is. There's a decent chance it's a teenager or kidult living with parents. Find out who lives at the address and send a letter to the parent explaining what happened.

    • This is harassment and will land you afoul of debt collection laws. Massive fines. Would strongly discourage. You cannot use a third party to tell or tell a third party about a debt unless you have the debtors permission.

      • So I can accrue debt from a bank but the bank cant send debt collectors to me unless I give them permission to do so? Thanks, time to rack up some debt!

        • +1

          You can accrue debt, but the bank cannot send debt collectors to your parents or a third party unless you consent. Maybe if you bothered actually reading you would understand the concept.

          • -2

            @meowsers: I did read and your comment never specified "parents" or "a third party"…. I only read "bank can't send debt collectors onto you"

            • @Zachary: Oh you just mean the part where I actually said third party. And never used the word bank lol. You just disproved your own point. Go read my comment sport.

              • @meowsers: I think I was drunk when I responded, sorry for wasting your time….

  • +1

    After having an absolute shithouse experience on eBay as a seller I now never use it to sell goods. it required a lot of planets to align to finally get something resolved and they are shockingly awful to deal with as a seller.

    …as a buyer on the other hand, I still use them but even that is still relatively uncommon.

    • buyer has a lot pulling power now than sellers

  • +2

    Stop using live chat and physically call eBay, ask to speak to a manger and escalate the case, be nice but firm. Phone always gets better results, I know everyone hates the phone these days but man it's $1000 call and get some actual results instead of copy and paste answers from live chat.

    • +7

      I ran into an issue 3 months ago as an eBay Plus buyer. Bought a $1k item, never got delivered because the store ran out of stock, store said they refunded me but I never got anything. There was no option to call eBay. I have months worth of correspondence with the eBay customer support team (each time I had to explain my situation again since it’s always a new person) and they never bothered escalating to a manager, always promising that it would get resolved within 7 days. I emailed Fair Trading NSW and then one day snapped and ended up emailing the Australian CEO directly - once the exec team got involved that finally resolved things. Dealing with the CS team in India was honestly the worst experience in my life. Exec team promised they’d established new processes to make sure things like this never happen again but I feel like that’s just something a company says to make you feel better.

      I don’t normally go full Karen all the way up to the CEO, but my patience was wearing thin after waiting months.

      • +1

        Honestly from what I have seen, sending something to a CEO or similar tends to get results, I know in the businesses I have worked in, whenever they forwarded on an email like this it got quick high end attention.

        If you aren't getting anywhere and have tried all the other avenues, this is definitely a good option to consider doing.

        • +1

          Yes totally was going to write a long email to Tim if my item was not going to be returned and eBay didnt cover me. Now I got the item back I am just happy to leave it as it is with $66 out of pocket for the experiences

      • Did you paid with PayPal? Just wondering if paying with PayPal will make it easier to get the money back?

  • +2

    You have the buyer's name, address and evidence that they received the delivery of the item from you.

    So go and lodge a small claim at the local Magistrates Court/Local Court (depending on where you are). Will cost you a small amount to file a claim but it starts a legal process which requires the other person to either show up and defend themselves or face default judgment, which is potentially also enforceable through the court. This will not involve lawyers and is geared towards people representing themselves.

    • -1

      While I do agree that this is the legal process for OP too, the other party can rock up and simply say 'I never got it'.

      OP only has AusPost's word that it was delivered to that actual person, and if I were (say) incorrectly summoned to court, my first response would be - What evidence do you have that it was me that received the parcel? I never received no such parcel which is why I commenced the refund process.

      OP only has evidence that that sent it, and it could easily be that Auspost has stuffed up the delivery. Those signature devices they use never properly replicate my personal signature, and they don't take photos of the parcel being delivered or left at the door. As example, when a Auspost parcel arrives for my wife, they ask for my wife's name and I say yes and they just hand me the parcel.

      Again I agree that Magistrate's Court is the only legal process, but I'd say that OP is in a weak position to win.

      • +2

        I guess taking OP on face value, the dispute was "Did not recognise transaction", not "Did not receive", so I'm not sure this is 100% relevant.

        • -1

          I was trying to highlight that OP will need to go to court saying that the other party did receive the package, and yet started the charge back claim.

          The first line of arguement/evidence OP will need to overcome is proof that it was received by the intended recipient. What i am trying to inform OP is that Auspot delivering to the wrong address and that person signing will still have it marked as delivered.

          OP has an uphill fight to prove that the addressed person was the one that actually accepted the parcel.

          • -1

            @Porker: OP doesn't even have proof that the party that received the parcel and the party that claimed the chargeback was one in the same as they do not have any of the payment info. For all we know it could have been genuine cc fraud, with the scammer having used a stolen cc.

            I agree that OP will be hard pressed to make a compelling case in court. For all we know the recipient could have used a fake name and there's no one real to even take to court…

      • That all sounds pretty implausible to me.

        If OP can show the sale, post-sale communications, evidence that she/he shipped to the nominated address and evidence it was received at that address then the burden is going to shift to the defendant. Courts make findings on imperfect evidence every day. Furthermore, registered post is typically a valid form of service even in relation to claims worth millions, costing people their homes, etc., so courts do accept evidence of delivery sourced from Australia Post.

        The defendant should be able to produce credit card statements. It should be easy enough to match up their credit card, name and address with the name and address used by OP. Just asserting that "I never got it" is not going to cut it if those things align.

      • -1

        The case here is buyer claiming NOT RECOGNISING TRANSACTION

        So thats is what OP is required to prove not that if item was delivered or not although if OP want to charge him for fraud then yes need to proove that then

        Also court goes on BALANCE OF PROBABILITIES so OP need to show his case is stronger than respondents

        **Not legal advice

    • Therefore many things I was thinking at the time.

  • +2

    Story is just a prime example of why 'scammers' are getting out of control - they simply 9/10 get away with it

    Im sorry to read this bro and you certainly can fight it in small claims but it will be and is A MASSIVE hassle Ebay should protect its sellers as much as its buyers.

    Good luck i hope you get your money but it make my angry this idiot that purchased your item will likely get away with $1000 item scotch free - anyone saying you can take the buyer to small claims have no idea how useless small claims is, 4/5 times they person your taking doesnt show up and it is all at your expense. Even if they rule in your favor the police wont help you, you need to pay further costs to try get your money/items back.

    • Op can sue for things like mental harm suffered with this instance too so not limited to $1000

    • I think the scammer are getting very smart to use the holes in the eBay system, so have a read my updates and maybe it will help in the future.

  • -1

    True justice here would mean you would do things to the buyer…. i think we're a bit too reliant on all these little "systems" in society.

    • +1

      I actually agree with this. The systems are crap

      • Everyone negging just because it worked out for them or they've never experienced this. It's all sunshine and roses until you have to trust the process of policies, procedures and guidelines and realise they're perfect in theory but dead in practice. You'll end up a loonatic if you keep it up half the time.

  • I feel for you OP. They charge 10%+ final fee on top of transaction fee for private sellers yet the service quality is rather poor.

    Long time ago I've setup some rules around minimum requirements for the bidders & buyers and that solved my issue mostly as it doesn't allow people with poor ebay history to buy my items.

    • Yes is 10.7% fee + $0.30 + $22 dispute fee. Not cheap at all

  • My thread of Ebay Scam where I was wrong ( with who paid the return ) ended up with the buyer demanding 3 X the postage rate to return the item . Which I expressed to Ebay he was scamming . Ebay closed the case with the item not being returned and full refund to him . It was worth just short of $500 ( Ebay total price and postage ) but fortunately my cost like $150 total including postage . I've been busy with EOFY but will follow up with return protocols of OZ . But defiantly my bad debt provisions are being lifted to double current rates for next year .

    • This really sux. You didnt take this further?

  • Why i stopped selling on ebay ! If i sell, its cash on pick up only.

    • I think small low value items are ok still……

  • What do all the big stores on eBay do? I guess that eBay reverses the presumption; Instead of seller having to prove item was received by buyer, buyer has to prove they didn't.

    • I think they have their own policy maybe?

  • +2

    Not sure why you bothered with live chat for a $1000+ item dispute, that was never going to go anywhere. Calling definitely the way to go

    • yeah I should have rang in the first place

  • +2

    Saw a video of a similar scam where parcel arrived to a house and person there accepted it. But house was an Air B&B and they were a guest there, intended to be there to accept the parcel.

    When sender door knocked the house at a later time, the owner was there and said they received no such parcel.

    Parcel was addressed to fake name at this address

    • there was one on youtube also similar to what you just described

  • $22 now for lodging a dispute…WTF!

    Do not delude yourself… you are dealing with a militaristic regime, pure and simple. They function as if in attack mode. Everything is in accordance to "regulations".

    There is no personality in them. This is why they are the world's Mose abusers of opioids.

    Your only chance is to get the item back, pay the crappy fines, etc, and re-sell.

    I hate it when you read the status as Finalised in favour of the other SCAMMER!

    • Yes $22 indeed. And it was charged the min you received a result. Not worth fighting for if you are selling low value items. Only thing is maybe you get it back if you won the case? Thats something I dont know abut

      • Might be eBay passing on the chargeback fee? Very poor of them to do that. Before managed payments pretty sure PayPal covered that under their seller protection.

        • eBay said to me the $22 is the costs it to cover the dispute to raise with the banks. I am certain it doesn't cost $22 to send 1 screen shot to the bank. You can get a bank cheque issued for less……

  • +6

    Whenever I chat to eBay customer service it feels like I am talking to a solid brick wall

    • +1

      They just read off a template of responses from the screen. I kept on face palming last I spoke to ebay customer services.

  • +1

    Sorry you have to pour time and effort into this, lying, stealing and feigning ignorance combo is the worst.
    Great to see you are taking it on as a challenge, the results will help others in the same boat (hopefully).
    Please do take someone else with you if you rock up at theirs.

    • I was going to take a friend. But glad its all solved now

  • My advice is always over charge on Ebay. If your item is worth $200 list it at $299- $350 range. The time and effort for selling on ebay is not worth the measly returns especially after they take their cut.

    • Yeah I was shocked when I sold something initially. Pretty high fees

    • Still need someone to buy, so if it's too expensive the item just won't sell.

  • This is why I stop selling in ebay. I hardly sell anything and my experience with ebay is poor as they always side with the buyer with no protection to seller.

    There is so many way for buyer to get a refund and as a seller you cannot do anything.

    I remove my automatic payment method from ebay and avoid using it unless absolutely need to,

    • What about low value items? Do you also not selling any low value items?