I’m starting this conversation to make some suggestions to improve Refund or Chargeback Policy of Fiverr in case of disputes filed by buyers through payment vendors.
I’m sure most of you guys have experienced some order cancellations due to chargeback and PayPal disputes. You may have received an email like:
“Hi [Your Username], We have been informed that a dispute was opened for your order FO4XXDE7XXE2: [Your Gig Title]. As a result, we are forced to cancel this order and ask that you discontinue your work. Please note that in some cases disputes are nothing more than temporary holds that are put on funds to make sure that they were authorized by the buyer. The dispute does not indicate that the buyer initiated it. If the dispute gets resolved, the buyer will receive an offer to reorder your gig. Thanks, The Fiverr Team”
“A dispute was opened via PayPal for your order FO25XXAAFXX3: [Your Gig Title]. As a result, we have to cancel this order and ask that you discontinue your work. If the dispute is resolved, the buyer will receive an offer to reorder your Gig.”
But I’m sure you never received your funds back, right? I have lost over $1500 just because of unethical buyers who filed chargeback for some orders placed here at Fiverr.
I have faced the same issue a few months back and when I contacted the Fiverr Customer care to resolve this issue, they said “we are not in a position to help you because it is beyond our control”.
I understand that there can be some strict policies, terms and conditions set by other parties such as payment vendors, etc involved in Fiverr business, but as Fiverr is a leading company, they should be in a strong position to negotiate with the payment vendors regarding their terms and conditions to resolve such issues. At least, the sellers should be allowed to deal with the payment vendor to prove that the work requested by the buyer is actually delivered. If there are some disputes, everything can be resolved mutually by dealing with buyers. Or, fiverr team should do the same on behalf of sellers because there are some instances we are left with frustration just because an order got cancelled due to a chargeback filed by the buyer through his credit card company or PayPal.
If you faced such issues, you would agree with the fact that, in such cases, sellers have no protection at all. Buyer’s account may be restricted, but what is the point of doing so because they can simply create a new account and start doing transactions using another payment method. Also, it is worth mentioning here that it is essential to evaluate the dispute carefully because there can be some sellers who try to get paid without delivering satisfactory output. So, final decision has to be made after reviewing everything carefully.
In case of fraudulent activity; for instance, “Any person that may use a stolen payment method, such as a credit card or hacked Paypal account, to process an order through a third-party payment system to create an order on Fiverr.” cancelling an order is beyond the control of Fiverr and it is essential to cancel such transactions. But, when it comes to an intentional chargeback (unethical buyer behaviour), Fiverr should handle such cases with utmost care because sellers are losing their funds even after working hard to complete an order.
Please share your thoughts because this chargeback issue should be resolved soon to make Fiverr a better place for everyone to work