A friend said, He sent some funds to another friend who promised to pay him in some sorth of currencies perhaps Naira, BTC, Payoneer or whatever currency they have agreed on but after sending him the PayPal funds, only for the receiver to stop responding to his messages.
After about two to three days, The guy chatted him and said “ His PayPal account was limited and that there’s nothing he could do to refund the payment nor make payment to the sender when the money is hanging there. So he insisted that the sender should Initiate immediate chargeback
He was worried, so he chatted me up and said “Kelly” What can I do in this instance because i am suspecting the guy has sent out or used the funds so even when i chargeback I may not get my money back if truly he has spent the money from his paypal balance.
But is it really true that if you send me money and i sent it out or spend the funds through PayPal, the sender can’t chargeback and get his money back? That’s not true at all.
PayPal don’t consider wither you have money in your account at the present or not when the chargeback is done.
Understanding PayPal Chargeback
Taking Example: Jane sent me $483 through PayPal, so after receiving the money i sent it out to other users or cashed it out through bank.
Now some issues arised and the sender decided to chargeback the payment but before then, I’ve already spent the money and my PayPal balance is $0.
So if the sender Succeed in Charging back the funds, paypal will add negative balance to your account and if you didn’t win the case (dispute) paypal will then credit the person who raised the chargeback while they place negative balance on your account.
So anytime the receiver load money in his PayPal account, it will be deducted till the debt is settled.
This means, even when the funds has been spent, PayPal will bear the loss pending any day, anytime the receiver gets to fund their account.
Hope you understand?