Paypal Site tools and Customer Service

[moltar]

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System: The following 3 messages were cut out of thread at: http://www.webmasterworld.com/ecommerce/3135505.htm [webmasterworld.com] by brett_tabke - 8:22 am on Oct. 26, 2006 (cst -5)

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I think first they should get their customer service act together. A hear a lot of account freezes complaints due to false fraud detection. I see less and less smaller sites accepting paypal, because of fear of loosing money.

It's too easy. One dispute filed with paypal results in account freeze for undefinite period of time. Most of the cases result in money being returned to the buyer.

[Bewenched]

As a merchant it is VERY hard to defend yourself against fraudulent charge backs. Especially on echecks. We now have to wait a full 24 hours after the echeck officially clears before shipping any product. we were burned a couple of times when we shipped the item the day it "cleared" only to find out that they were able to stop the payment on the clear date.

[Brett_Tabke]

> One dispute filed with paypal results in account freeze

That is not true.

We have done 25k transactions through pp and run about .001% dispute rate about 150 over the years. We've never ever had a account even so much as questioned. The dispute process is streamlined and pretty easy for merchants these days.

[jsinger]

echecks? Are you referring to a 3rd party collection mechanism or one where the customer simply gives the seller his routing and account numbers?

According to the Wall Street Journal a few months ago, "echecks" are a sort of bas-tar-dized payment method dating back hundreds of years ago (and virtually forgotten even by lawyers until recently) to help the handicapped or illiterate write drafts.

Offsetting the obvious risks, a defrauded checking account owner is given a few months to report the misuse to his bank. Important to scan checking accounts monthly for misuse.

Seems there is very little case law on echecks. There have certainly been a number of scams using echecks in recent years.

[moltar]

That is not true.

Happened to me personally. For more check the site that was banned from mentioning :).

[ThePailyGuy]

There are better ways of defending yourself against fraud, rather than waiting 24h after an echeck anddelaying shipment to the customer.