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I believe that PayPal will notify the seller if the buyer starts a claim, and give the seller some time to resolve the issue.

In this case Ribble could resolve the issue by issuing a PP refund, the buyer would tell PP the matter was resolved amicably, and the case would be closed.

So, if OP is correct in his description, then Ribble should not be telling him to drop the case before issuing a refund.
 

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That's the way it works on Paypal on Ebay where I buy and sell a lot of parts, not worried about Ribble coming through, eventually, but would with some low feedback sellers.
The surprising part of your story is that Ribble appear not to know how the PP dispute resolution process works. They'll be getting a black mark if they don't resolve this quickly. PM me for the email of the CEO if you want.
 
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