well, i am thinking of getting a few help. as i will start a small shop which is digital products. but the main thing i need to know.. how will paypal protect me, if someone sends from hack paypal. or chargeback me . would like to know.. Experience users
PayPal are rubbish 50% good in chargebacks most of other times they are rubbish and you just lose out!
even thought paypal is on top in the business and 95% customers prefer paypal, its not really good idea to sell digitial products through paypal as paypal dont provide any protection to the seller (digital products).... however there are certain to avoid paypal frauds like send you payment from a stolen paypal....
then paypal will remove those funds from your account. In short, you'll lose the money and the product as well. I am not sure if there is a way to protect yourself against a chargeback
So this mean.... it will really sux... :eeK: any more thoughts... As will the account get limited everytime someone chargeback or use hack paypal or credit card.
No, your account would not get limited because of that. It will only get limited if you have a negative balance, ie when you have withdrawn the funds and a chargeback happened. There is nothing really much you can do to protect against chargeback since it is between the customer and their bank and their decision is final. With digital products there is simply no way to proof that you actually delivered the product and the banks would usually side their customer. It is the same if you use any other payment processor as long as credit card is involved. Remember that it is in Paypal's best interest to prevent any chargeback or refunds because when that happens, paypal would lose what tiny fees they earned from the account. If you have withdrawn from your account already, they will have to pay the customer from out of their own pocket the amount which is paid to you plus fees and would weaken their reputation with the bank when the customer does a chargeback. But Paypal knows the risk with online transaction. Sometimes it is not possible to fight a chargeback unless you physically ship the product and uses a courier service with online tracking and signature proof to back up the sales.
AAHH!!!!... then how come many members make some digital sites... .. i dont know how would they react in this cases.
Well, I've been selling my softwares online for the last 10 years now and although I have about 1 or 2 chargebacks a year, the majority of my customers are honest. Paypal isn't really a great platform as it was conceived and built around eBay and online auctions where physical items get transferred. With digital products, paypal although is amongst the cheapest option isn't the best. I use Plimus.com for the last two years and found them to be professional. They are more expensive than paypal but they do have pre-checks and fraud detection system in place to minimize the risk of exposure. Paypal minimize the fraud protection and mainly trust their members and thus by doing so, they can offer you a lower fees. Although the concept of Paypal is nice but the system get easily abused. I guess you need to decide if No fees or no risks is what you want. In the end, chargeback is just part and parcel of doing business but like I said before, people are generally honest. As a side note, I believe the risk factor primarily stems from the type of product/service which you provide and the customers you deal with. If you deal with corporate clients then the risk is minimized. If you however deal with shady activities then the risk is increased.
I don't think I had problems with Paypal. Yes, for the infamous phishing scams, I would suggest my readers to do this: 1) Use Mozilla Firefox. When logging into Paypal, ask it to remember passords for that domain. So when you get a mail "verification failed and account is limited at Paypal" from some scum and you happen to click the login page link, the username/ password won't get filled up automatically because you have instructed Mozilla to remember passwords only from Paypal.com This way you know it's a scam! 2) Install AVG Anti Virus free version and alongside with it, use Spybot. While AVG takes out Trojans, Spybot takes care of keyloggers (this stupid thing when it gets acitivated submits all form information to the hacker at the end of the day) 3) Do not visit porn sites or submit any information there. The best way to know an active email user, is to get lists collected by these porn website owners. Also some malicious software gets installed without your knowledge and approval. Turn your AVG resident shield on when you are connected to the Internet!
yes there are certain ways to stop chargeback and paypal reversal... and also protection from frauds... whenever i get a paypal payment, i quickly send an email to the sender and if i dont get reply within 6 hours, then i quickly refund the payment and hence stay away from reversal and fraudulant payments.... and i use different tricks to fight chargeback because chargeback cost me big lose because i had to pay the chargeback fees of $20.... so its double lose.... i learn my lession on chargeback last year when i lost a huge amount of money because of Credit Card thieves... who later chargeback the money and i had to pay the fees for chargeback.... so now no one can chargeback from me once they pay me.... and also the verification is done by PHONE to make sure that the CC owner knows or agree about that transaction he/she is going to make... this cost me few $$ for phone verification but it worth the pain and lose.... so this is how i fight CC frauds...
Consider using Share-It - they will do most of the fraud screening for you. A bit more expensive but worth it in the long run.
I was thinking about using phone verification. I sell digital products and 40% of my orders are fraudulant. I think it's the competition trying to put me down. They are almost successfull, last month I had a huge lost because of fraud. I was in the minus in my account, very minus.
i use cubecart to sell my digital products, i have just started ..if i am selling through cubecart and cubecart is providing the download link to customer's email address after they make payment via paypal gateway..then how can paypal take side of customers,in case they charge back ??? plz reply.
i read all the post above and found very interesting points but most of you are sellers as many of you explain above. i will like yo to put on our shoes. what do you think if YOU as the buyer (HONEST) need to purhase digital good, for a seller who YOU dont know,. what can you do in this case???? do you trust and 50% change to received goods and 50% chance to lose you money..
One additional check is to try and deter fraud - track IPS and display an agressive anti-fraud policy with the users IP address displayed back. You can also make them sign a contract with an official electronic signature. These measures will often scare away the scammers and can help in conjunction with using a processor with some protections for you built into place.