I've been selling downloadable products and using PayPal as a payment processor. In the past few months I have noticed an increase in the number of people filing disputes. I believe these people genuinely did not download my product as the download IP address doesn't match the country shown on the PayPal account. PayPal doesn't offer much in the way of protection for sellers of digital products and so each time this happens I lose out. Can anyone suggest an alternative Payment method or perhaps tell me how I can use PayPal without becomming the victim of fraudulent transactions? Thanks
How long does it take before the payment is credited to your paypal account if your selling digital products?
There is not much on offer really, there used to be E-Gold, but the problem with that is you can spend it on....NOTHING!
Use google checkout if u want all secure transactions.If u want to go with paypal only,then use it with Plimus.
Your still not safe with secure transaction if someone filed a dispute or fraud. If your paypal balance is 0 will it become negative if someone filed a dispute on you? Send a money to someone and file a fraud to get even.
The payment is credited almost straight away provided they aren't using eCheck. I have it configured so that the download is delayed for eCheck payments. The problem here seems to be PayPal accounts are being phished and then used to purchase digital goods like software and ebooks. Because PayPal offers no protection to sellers on digital products the seller nearly always loses out.
Is there also a delay for those who don't have a verified paypal account? In Xoom.com if your paypal account is not verified it takes 3-4 days before the transaction is completed but if your verified it will only take minutes to complete it.
The BEST option (imho) is to call the person up, verify that the transaction was indeed genuine, and try to keep a recording of the call. A client of ours sells digital licenses (keys for unlocking the software), and they experienced this problem many times. So they ended up getting a VoIP line with voice-recording built-in as an option. They call for each and every sales they make, confirming the name and telephone number of the card holder, along with the transaction credentials (which they keep for proof). In this particular case, since the onus is on my client to show delivery of the license key, which he does by fax, email, SMS and even sometimes physically posting it, they went from 7 chargebacks per 100 transactions to now something like 1 per 500. The cost of the added phone call, etc. they say is worth it. Since you're selling digital download, there are a couple of providers that specialize in digital software delivery is RegNow.com (a Digital River company). You may want to check them out.
Sounds familar and brings back awful memories! When I first got on the net in 2001 with my first website, I got scammed over $5000 USD with paypal reverse payments. I have a traffic hits website which supplied traffic to people, they paid me via paypal, I delivered the hits, the a few weeks later they would write an email to paypal saying someone had fraudulently used their paypal account ... in other words "they would pay me for the goods, I delivered, then they wrote to paypal and got their money back and the goods for free!"