Forum Moderators: buckworks
I heard people can do chargeback on paypal.So I want to know
1)Will paypal give us a fair chance to counter the "charge back" i.e by submitting proof of delivery?
(We deliver just by email as its only graphics files)
2)How the chargeback process actually works in paypal?
Are there some tips/precautions we can take in advance?
Oh, and PayPal holds the disputed amount in reserve until the chargeback is resolved.
My guess is that in your case, your odds of winning chargebacks would be pretty low. What is your success ration in disputing normal CC chargebacks?
My guess is that like a real CC transaction, the customer's funds are initially reserved. When PayPal go on to charge for that transaction, the funds are then withheld by the customers' bank.
Just to give more details about these occurances. The first was acknowledged by the customer who paid again when she received the product. The second claimed that it was an unauthorized purchase by his cousin who had access to his computer. It seems that in both instances, the customer did contact their bank to reverse the transactions.
I am not sure how you can counter this except by delaying shipping for a few days.
I am not sure how you can counter this except by delaying shipping for a few days.
Must be tricky for us as we don't physically ship anything.
we just send email the files.
[webmasterworld.com...]
I read paypal have 2 type of chargebacks.
1)That is done by CC companies on behalf of buyer.
2)Arbitration files at paypal by buyer
is there a way we can ask paypal to accept payments when source of funds are from paypal account and not from credit card payment.This will atleast keep us out of CC chargebacks?
is there a way we can ask paypal to accept payments when source of funds are from paypal account and not from credit card payment.This will atleast keep us out of CC chargebacks?
Basically I sold a 'consultation' for X dollars with the understanding from my clients that they'd receive the secondary product for free.
To receive their free product they had to complete an email which confirmed they'd received their paid consultation, were happy with it and that they understood that by making a reversl or chargeback in the future would be both fraudulent and unethical.
Once I received this email from them with their recorded IP address I'd then provide them the membership credit as a free bonus.
I had one person try to do a chargeback on me and I emailed him with a copy of his email statement. I explained that if I were forced to take the time to defend this chargeback then I'd certainly go the extra mile to try to get his credit card and his paypal account closed too. He withdrew his claim immediately.
Best wishes,
Martin
1)That is done by CC companies on behalf of buyer.
2)Arbitration files at paypal by buyer"
What happened to me recently did not belong to the above. I think the customer cancelled their credit card accounts before PayPal can charge them. This resulted in a reversal of the transaction.
In my case, the first customer did pay us eventually on receipt of the item. The second case may be covered by the seller's protection policy and is being investigated by PayPal at the moment.
All the same, I feel this is a worrying development as it introduces another risk scenerio with PayPal transactions.
1. If you provide a service [or your customer selected paymant type as: Service] -- you are screwed; you will never win against a chargeback case.
2. If you send a completed product or service by email -- you are screwed; you will never win against a chargeback case.
You could somehow protect yourself if: You send the graphic file on a CD via a registered mail (with tracking number/delivery confirmation).
For Paypal email is NO PROOF (they pretend like it was still XIX century). For them the only "proof" is written postal delivery confirmation.
Welcome to ecommerce.
[webmasterworld.com...]
And "online graphics" sent by email is a non-tangible product. Same with ANY type of "service" (like copywriting, for example) - with Paypal YOU ARE NOT protected at all from chargebacks.
You can read more about it in their TOS: [paypal.com...]
PayPal agrees to reimburse sellers of physical goods from reversals resulting from (a) a buyer's unauthorised use of a credit card and/or (b) false claims of non-dispatch of goods. This protection applies only to the sale of physical goods, and not to any non-tangible, non-physical goods, digital content or any services.
And "online graphics" sent by email is a non-tangible product. Same with ANY type of "service" (like copywriting, for example) - with Paypal YOU ARE NOT protected at all from chargebacks...
Aha..
We have been dealing with a company that does our fancier graphics (we just don't have time for the special stuff), and they ALWAYS send a copy on a CD for just that reason - to have proof of delivery. I asked them once why not just send it by email, and that is the reply I got. They will send urgent files by email, but they still insist on having a "hard copy" delivered. Since that is handy for us also to have it all on a CD, it works for us.
[edited by: Wlauzon at 11:40 am (utc) on June 1, 2007]
I'm just passing by to thank you for your tip - to be honest, I've never thought of sending a CD copy of any digital product. Seems smart enough and so easy to think of...Anyway, when using PayPal, you need something very secure, that's for sure. Interesting thread, everyone.
