What are sales reversals?

A sale reversal is a transaction that has been reversed by a payment provider (PayPal, Moneybookers/Skrill or credit card provider) due to unauthorised activity on the credit card, PayPal or Moneybookers account. Transactions are reversed when the payment provider detects unauthorised activity on the purchaser's credit card, PayPal or Moneybookers account. The payment provider investigates the account activity, makes an internal determination, and reverses the funds. They inform Envato Marketplace staff of this action, and we update the author's statement to reflect the reversed transaction. 

What is the difference between a sale reversal and a refund?

Sale reversals that are recorded on author statements are not the result of a refund request or a poor customer experience. A refund can occur if an item purchased on the Marketplaces is broken or is not as it was described on the item page. In this case, the buyer has dealt with the Envato Support team and an assessment is made on the complaint. A sale reversal is the result of a reversal process initiated by PayPal, Moneybookers or the credit card company based on their own fraud detection policies. 

What happens to the item purchased if there is a sale reversal?

As soon as a reversal occurs, Envato immediately disables the buyer's account, removes the item from the downloads page and invalidates the purchase code of the reversed sale. 

Why can’t Envato dispute the reversal with payment providers or have a policy of no sale reversals once an item is downloaded?

In the case of these sale reversals, we are notified after investigation has been completed and a decision made by the payment provider that the transaction must be reversed. We are unable to dispute these actions, as the payment provider has already determined that an unauthorised transaction has occurred. Envato does not benefit in any way from these events or retain funds from these transactions. In some cases we are also charged an additional fee along with the reversal. This fee is paid for by Envato and is not passed along to authors. 

What is Envato doing to protect authors from sales reversals?

Our support, development and finance teams work actively to secure the Marketplaces and make it a great place to do business. As part of an industry that is at the forefront of changes to the way people buy and sell goods online, the policies and processes that credit card companies and online payment providers have established are integral to our use of their services. We work actively with these payment partners to ensure that we're doing all we can to reduce the risks to our community of authors and buyers.

If you have any questions about a specific sale reversal, please open a ticket with our support team.

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