I just got done replying to a chargeback dispute with paypal. So I decided to look at what other people had experience with chargebacks. All of the posts I can across had people writing about their experience after they dealt with chargebacks, reversals, or scams. I am to start a new post on how to prevent chargebacks. So please post things you do that can help you prevent chargebacks and stop losing money. Here are two tips I read on a different forum which are pretty good tips. 1. Provide a free item. So the customer pays for a service/product and to get the free item the customer emails stating that he/she confirms they received what they purchased and are happy with it. They also agree that failing a chargeback at this point is unethical. 2. For digital products(applies to me). Allow people to download the files and then send them the files on a CD. This confirms that you have actually sent the item and should give you more leverage. I am going to implementing both those with my store.
yeah both your tricks to avoid chargebacks are good but what about people like me "who sell links" we cant give any proof to paypal related to sells last year i lost about 75$ is such payment reversal process
Hi, I think the only way to avoid or at least minimize the chargeback risk is to make sure you have no fraud processed. Most of people do not ask for transaction reversal if they really paid for a service or goods. It is very hard to do disputes with Paypal actually - but the serious fraud check is the most important step I think - at least in our business. But it should be the same with any other web offering, of course your propositions are good and will work but I am not sure that will help in all cases. Just make sure your client's base is "clear" and you'll not have many troubles. Good Luck! A.
there is no way to stop a chargebacks and paypal reversals.... unless you spend a year thinking of any possible way to stop a fraud from scamming you.... yes thats what it took me.... but now i can laugh at frauds...
If someone charge back a link, you can always pull the link. But incase of a domain seller or a physical good seller, paypal charge back is really bad.
After sleeping it over, I had pretty good idea on what to do with me latest chargeback. The guy used an gmail email for his paypal transaction. I am going to talk to paypal and gmail about getting information about the accounts and I know gmail requires a cell phone in order to create an account with them. I will talk to a lawyer if I have to but once I get that name and address I am going to call the local authorities stating that person has used a stolen credit card (that's the reason for this recent chargeback). I will see if I can get the credit card provider information and contact them to have them investigate if that credit card has been reported stolen. I am also going to add a Wall of Shame/Moroms page on my web site and at least put that person's email address on there. Also the reason for being on that list. If it turns out that the cc was stolen the reason would be "Being a moron for letting someone steal his credit card." A lot of people on here say you can't do much about scammers, I know they are wrong. If you make living hell for those guys and make sure you let them know you will fight back. Odds are you will deter the casual scammers.
Aside from using another payment processor like e-gold, you should only deal with reputable buyers and sellers. If the deal sounds too good to be true, then it is.
I used 2CheckOut for small items, and quickly learned my lesson. No matter I said to stop the very high charge-back fees, they said it was my fault because I didn't do my part in verifying the card was good. I never approved it, I used their approval service. The circular-logic confused me, and I stopped using them. So moral of story? Shop around, their are good services, and market something where the profit is enough to offset losses. tom
There are losses in every business - it's really frustrating because so many people take advantage of paypal and you know they are keeping a product and gettting their money back, so irritating - It's just like someone going to a store, buying an outfit, wearing it out that night and then returning it the next day - It happens in every business. I think you just need to make sure you always have a cushion in your paypal account. When you are discussing disputes in the resolution center, be VERY specific - talk to the person like you are talking to the people in paypal -
this is good, fight those chargebacks.. we will figure out somehow,, for now im going to get tracking for everything.. even 1cent auctions
-check whether your order comes from verified paypal users. -dont ship to different address other than billing addresses. -use escrow for buying/selling stuff. there is no real way to fight chargebacks, except you need to have awareness and common sense.
lol it doesn't matter wherther the buyer is verified or not because now a days there are more VCC verified paypal... and 40% of VCC verified users have fake address or scammers....
yeah! one reason of buyers filing for refund is sometimes your confirmation email dont reach them and they are spam trapped. be sure to send them a confirmation email that you have received their payment.
i disagree! it doesnt matter if you accept paypal or credit card. you will get orders with stolen credit cards as well. Moneybookers offers some kind of relief to sellers from chargebacks, still if the fraudster uses stolen credit cards to fund moneybookers, you cant escape from it.
I've only had one chargeback - a couple of years ago. And I learnt from it. First off - the problem isn't paypal - it's the credit card company. So although I could provide loads of documentation that strongly suggested the chargeback was on fraudulent grounds, it made no diffrence, because a) I doubt paypal passed it on and b) - the credit card company protects their own customer. So what I learnt was to dot every i and cross every t in every transaction. And any orders over a certain amount - and obviously I never say what that amount is - I email the customer back to ask them to confirm their address. And if anything just feels wrong, I ask more questions until it feels ok, or I make my excuses and refund.
Chargebacks really ticked me off for my downloadable product, so I took a couple of steps which may help others: 1) License keys to software are generated manually -- after I confirm receipt of the money. 2) EVERY user is called (using Skype for international calls) to verify that they intended to purchase my software. 3) The date and time of the call and a short note is made in the event of a chargeback. Since I started implementing this, 3 people have discovered that their CC info was stolen while I was talking to them. Since I then knew it was stolen, I was able to issue a refund before the chargeback came in. Total savings by making these calls is approx $50 and the cost for me to call people was about $3. Additionally, I didn't have funds locked up while the chargeback process was going through (something which can take 6 months!) Additional savings: stolen copies of the software were never able to be obtained through this method. One additional note: I always block my phone number when calling b/c I don't provide phone support.
nice one. i often find many people dont like being called up by phone. Having said that it is also necessary to issue refund than getting a chargeback.