How, for example the commerce site company stays away from users making a chargeback in PayPal for the payment as soon as they receive the item? I am not talking about Amazon/eBay and such, because they are backed up by the buyer/seller protection and have deals with the shipment companies, thus making it impossible to make a chargeback as soon as PayPal knows from the shipment company that you have received the goods, but I'm talking about smaller commerce sites (like DealExtreme.com for example).
Not everyone has intentions of reversing a payment & I am sure they will win 90% of their disputes considering they can provide legitimate documents to prove the item was shipped, the business is licensed, and so on.
its really hard to become untouchable on paypal.... however its possible to stop a user from filing chargeback and paypal dispute.... just google it and search because that is what i did to overcome this problem.... and also make sure you keep the shipping proof.... because proof is the only thing that will make you win a dispute....
So the customer must get into a debate that he did not received the goods, I guess that's why fraudsters will rarely attemt to do chargebacks on big ecommerce companies, because they will most likely lose. Thanks for the response guys, it's really helpful for those who consider getting into the ecommerce business! @Edmond Dantes: What does customer service of the shopping site has to do with a customer doing a fraud and making a chargeback with the PayPal payment system? I ment to point at people that buy the product only with the purpose of getting it for free by doing chargeback and not those that do chargeback because they did not received their item on time, for example.
well, the nets been around for some time and the fraud detection level of those companies are pretty high. they know what to stay away from and i know in some cases, if the price of the item is high, they wont do the transaction without a phone call. things they can check are your email address, IP address, where is it being shipped to and does that match the AVS of the card (this is a popular one, because if the card is in the US, you can check AVS (address verification service), which is the address the cardholder gave their bank, and the merchant gets response (match, mismatch, etc), then if they can match that to where the shipment gets sent, they are pretty comfortable with it. and if paypal sees things amiss in the account, ie many chargebacks, they can close the account as well.