PSA: Paypal Just Did a Mass Chargeback on PSN Transactions

If your Playstation account has been suspended, this might be why.

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gangsta_red509d ago

Damn that sucks! Hopefully sony can get their service sorted out soon. Nothing worse than someone messing with your money.

trouble_bubble509d ago

Sounds like it's a paypal issue not Sony. Sony didn't do the chargeback, PayPal did. Article states Sony has contacted them as to wtf.

gangsta_red509d ago

Reading the update Paypal is saying it's actually on Sony's end...regardless it sux

trouble_bubble509d ago

Hmm, yeah the latest update says PayPal is now saying it's a Sony thing, to do with limits on their GDP account or something. I don't even know what that means, but a goof's a goof.

DARK_WOLF509d ago

One of the many examples of why xbox live is better than psn.

Its undeniable.

509d ago
rainslacker509d ago

paypal has limits on commercial retailers or accounts, and the companies need to resubmit their compliance and licenses on a regular basis. If they don't, then they can be limited in how much they're allowed to get in charges. This is an automated process on Paypal's end, and I have had it happen to me with my business. It was quickly resolved, and the money got back to where it was supposed to go, as charge back money doesn't go immediately back to the customer.

This is actually true of any retailer that accepts credit cards, as they are usually given a limit without making sure they have their licenses. It's done so companies can't just skirt showing their revenues. In the case of Paypal, if you have a certain amount of revenue, you do have to have your own CC processing service, as the CC companies require it.

Sony and Paypal will likely be able to sort this out pretty quickly to see what charge backs are because of Sony exceeding their limit, and which one's are actually charge backs, and hopefully it doesn't affect customers for too long, if it has at all.

Zeref509d ago

why is it always sony that has these types off issues?

ThanatosDMC509d ago

From what I noticed on my Paypal account a few weeks ago is that Paypal added something called Paypal Balance to people like me who used to have only Paypal Credit. Paypal screwed us by making the Paypal Balance the preferred payment method on preapproved purchases. The option for "Funding Source" for the merchant "Sony Interactive Entertainment Network America LLC" only had the option for Paypal Balance instead of the old Paypal Credit. Paypal Credit disappeared. Since people like me didnt have money on Paypal Balance, money ended up being immediately taken out of my checking account with my bank. My bank blocked it because it was odd. Sony didnt get there's money so my SEN account was jack full of missed charges. It's fixed now. Paypal Reinstated Paypal Credit as a Funding Source for merchants.

If anyone wants to know the fix, login to Paypal. Click Wallet. Make Paypal Credit your preferred way to pay. Click the gear icon next to logout. Click Payments on the tab selection. Click "manage pre-approved payments". Click any merchant's name that has the most recent date, in this case Sony Interactive Entertainment Network America LLC. Change Backup Funding Source to Paypal Credit. Done. You can now buy digital games and pay it later.

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ocelot07509d ago

It's not a Sony issue. Paypal for what ever reason (most likely a bug in the system) have initiated a charge back on a lot PSN transactions. By doing this people accounts are being auto banned due to this Paypal issue. Sony now have to work with paypal to sort this issue out and re-instate a lot of PSN accounts.

ziggurcat509d ago

I'll have to try, and buy something to see if I am affected by Paypal's goof.

ocelot07509d ago

@ziggurcat just log into your PS4/PS3/Vita. If you are able to sign in and connect online. You should be fine if you can't connect then your account maybe banned and will have to contact Sony.

nitus10508d ago


No problem logging into PSN so it looks like my account is fine. I have also been playing online for quite a few hours without a problem.

LandoCalrissiano509d ago

Wow, people on this site are assholes aren't they? In what way is anything what you said disagreeable?

BLAKHOODe509d ago

Don't put any thought into it.
There are people on this site (and others) who get there kick out of down-voting everything.
Whatever makes them happy.

LandoCalrissiano509d ago


Yeah seriously! People will down vote before anything else. Why do you think Facebook never had it? They knew this was why. Take the cod: iw video for example, so much down vote yet still one the top selling games for 2017 (when it came out last year).

rocketpanda509d ago

Don't bother with the upvotes or downvotes! Anything negative towards Sony will result in downvotes even if you bring up valid points. Diehards will take no heed of your points, unless you talk trash about rival companies and praise on how faultless Sony is.

509d ago
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BadBoyC509d ago

Crap like this is why I will continue you to buy my games physically as long as I'm alive especially after dealing with Sony's customer service and Sony not allowing me to get a refund on a pre-order made. No thank you!

I honestly can't fathom why anyone would wanna go all digital .. Going digital just makes it easier for companies to screw you and gives them more power over you.

gangsta_red509d ago

I personally have not had any problems using paypal to make purchases on PSN so far, hopefully this is just some isolated incidents/ There are a lot of perks with going digital I have experienced.

I used to love just having a physical copy but not only did I find it unnecessarily a waste of space but having digital copies ready to go from your HDD was just more of a convenience. I find myself just having a physical copy of games I rent nowadays.

There are definitely pros and cons with both.

I am sure a situation like this will be resolved soon from either Sony or Paypal.

EatCrow509d ago

I prefer digital for its convenience but youre absolutely right regardless of my preference.

Really baffles me why so many sony fans are huge fans of digital gaming on pc.

jaycptza509d ago

I work in payment operations. It's not SONYs fault charge backs can only be initiated by the "account holder" or the banking institution.

fenome508d ago

Yeah it does! I'm glad I don't use PayPal.

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tyasia0509d ago (Edited 509d ago )

Is this even true? I can't find any information about this on either the UK/EU PlayStation forums or on Paypal. In fact this seems to be the only article on the internet talking about this.

monkey602509d ago

There are a number of users complaining about bans on forums and fan pages. Seems to be real

tyasia0509d ago

Do you have a link? Because I can't find anything at all that relates to this issue

monkey602509d ago

There's a couple Facebook groups I'm in and a lot of people posting screenshots of their ban message

TWB509d ago

Oh, I just realized I saw a few posts on PS4 subreddit about mysterious bans day or two ago. This could be the reason...

Kiwi66509d ago

Maybe you should search outside of those areas to find out about it

KwietStorm509d ago

I was literally just about to buy something through paypal -__-

DigitalRaptor509d ago

I'm going to buy PSN cards for my purchases going forward.

rainslacker509d ago (Edited 509d ago )

I used to use a rechargeable CC. Been doing this for all online purchases since I had my identity stolen a while ago. But lately, I have to buy PSN cards from Amazon for instant delivery, and use those. After I moved, Sony won't let me use a credit card on PSN for some reason, even though I've never had a problem or complaint about any purchase I've made on it. Think it's because I updated my address, and I never bothered to call customer service to remedy the issue. Read that if you change your CC they do this sometimes, which I did since it was more convienant to reload a different card where I moved to, but it's been a hassle.

I think it's one of those things that Sony is being overzealous on trying to prevent fraud. I'm curious how many people just get frustrated and give up, thus causing them to lose revenue. Charge backs aren't that big of a deal for digital content, because they aren't losing anything really, so it makes little sense to be so protective. I'd imagine it'd be easy to remedy though.