It doesn't matter what paypal says. If the buyer pay by credit card, they can dispute it with the credit card and get the money back. Paypal will deduct that amount from your account. I have a contract, emails, etc... At first, Paypal would not give the money back to the buyer. When the buyer dispute with credit card, it didn't matter, the money just go back to the buyer... It pisses me off...
It is like talking with a wall...
I happen to own a credit card processing company so please feel free to ask for any clarification. This is how disputes work:
1. The buyer disputes the charge with the card issuing bank (Captial One, BofA, etc.) and provides them any proof or documenation,
2. The card issuing bank then submits that to the card brand (Visa, MC, Amex, Disc, JCB, Diners, etc.),
3. The card brand then contacts the processor of the transaction to notify them of the dispute and to ask for verification and proof of the charge, signed credit card slip, contract, shipping, or whatever else might be available,
4. The processor will then contact the merchant (seller) to ask for this documentation,
5. The merchant provides the documentation to the processor who then forwards it to the card brand,
6. The card brand then makes a determination and forwards the results to the bank and processor who then notify the buyer and merchant (seller),
7. The losing party is able to submit an appeal but these are rarely ever successful.
In this case, the renter or seller becomes the merchant and Paypal is acting as the processor. The renter is acting as the buyer. I have personally dealt with 1000s of these types of disputes and the card brand almost always gets it right. It is very important as both the buyer or merchant (seller) to provide as much information as possible in order to receive the proper determination or decision.
Online or PIN based debit is handled a little differently as are certain charges such as those that are less than $25. I hope that this information is helpful.
