PayPal Chargebacks

I don't know if it's a new trend or what, but I just had my eleventh chargeback from PayPal this month. All of them came from users who purchased digital products directly via our software store, getting the download instructions at their PayPal address in every case.

I'm disgusted. PayPal sends an email each time saying 'you are not eligible for seller protection in this case.'

Just needed to rant a bit. PayPal is great, but this is tarnishing them in my mind a bit Anyway with similar experiences, or even someone seeing more chargebacks as of late?

 

That's the only disadvantage of Paypal!!
I've never encountered this kind of problem.
How many days did they do chargeback after people paid you?

 

What is the chargeback reason? Are the not satisifed with your product? Or is the consumer say he / she did not do it?

 

I had someone do a chargeback on a $1.95 directory submission. Needless to say, I stopped charging on the directory.

 

A couple of them were over a month back. There was never any communication with the buyers via at all, they never opened a ticket, send an email, nothing. Also no dispute in PayPal, just this message after the fact.

PayPal stated that the funds used to make the purchases were fraudulentally obtained. I don't know if that means that the account itself was jacked, but all of the purchases were made using the PayPal email as the email to receive download instructions, so it isn't likely.

 

That is pretty sad... I think the smallest chargeback I've ever had was a lady that flew off the handle on a $2.98 set of 500 cellphone wallpaper/backgrounds.

 

That's a great business move!

PP's crappy chargeback policies really need fixing. They are much harder to deal with than a normal merchant account. It is too buyer oriented and caves to buyers - sometimes unreal - expectations in delivery time and other factors.

 

Be careful when getting too many chargebacks on PayPal.

Your account will be subject to verification (account locked with PP asking for SSN and another collaterals) followed by a more aggressive lock followed by account suspension for 180 days if chargebacks/disputes don't improve.

 

I've been doing research on recurring non-essential bills, looking at how consumers can deal with recurring bills they want to eliminate or bills they're trying to eliminate but can't.

What I'm finding is that the *entire* credit card and merchant billing industry (and arguably U.S. regulatory bodies) are aligned against the consumer and for the merchant.

Before people get pissed at PayPal for facilitating chargebacks, think about how you feel as a consumer when dealing with bills you rightfully want to eliminate.

I predict a huge consumer revolt in the not-too-distant future, and European-type legislation to enable this.

-Shorebreak

 

This is basically credit card fraud. We've been hit with it, too.

I just don't know how Paypal can continue to operate this way with so many merchants delivering digital goods and services.