Ok I have been selling digital products for sometime now and paypal disputes from people clearly buying a product are getting irritating. Case in point a person recently purchased a script from one of my e-junkie affiliates. I tracked the IP address to a city in texas and the next day got a notice from paypal that they claimed "unauthorized charges". Since they gave me the name I did a whitepages.com search and found the same person living in TX, a telling sign. The simple fact that paypal or their competitors has never developed a process to handle digital sales is a travesty to our industry. I know all the tricks, shipping a physical copy, telling paypal it was a service, encoding scripts.. etc.. But we should not be forced to use trickery to protect ourselves and Paypal should not allow peoples accounts to be scammed to purchase digital goods which can then be copied and resold or given away on warez sites My Proposal: 1. Paypal, Google Checkout or Amazon Payments develop an API specifically for downloadable sales. 2. The API would work similar to paypal's current checkout, with a few extra steps. 3. The API would allow integration with various ecommerce systems. Ecommerce Integration: 1. Shopping cart systems could allow user to signup for the site with a paypal email. 2. This email would be verified by paypal 3. Account listed in paypal in a section titled "ecommerce accounts" allowing a user to view all of their ecommerce accounts. 4. When logged in and making a purchase for goods using the digital API paypal detects if the IP address is similar (i.e. pakistan versus usa) 5. If the IP address is similar paypal's digital API tells the shopping cart script to allow the download. 6. If the IP address is not similar paypal tells the shopping cart script they are notifying the users email. - In the email paypal sends a link is provided to confirm the transaction - If customer clicks this link paypal verifies the digital purchase and tells the script to allow the download. Quick Button Check out: 1. Websites like E-Junkie, which dont have user login and use a paypal button, will make download buttons using the digital API 2. Once clicked the button goes to the standard paypal login screen. 3. User logs in and makes the purchase. 4. Digital API checks to see if purchase is to a paypal account that user has purchased from in the past. 5. If so, the API allows immediate downloading of the product. 6. If not the API informs user a confirmation email was sent. 7. Once the link in the email is clicked the API allows the download tell me what you think.
Solution : told your buyers to add note in paypal payment notes "This payment for Services", or "This payment for digital product - Delivery only by Email"
Both of u are missing the point. Digital Downloads represent a multi-million dollar industry, maybe even multi-billion. We should not have to stoop to trickery etc... the ways above describe a perfect union of ecommerce shopping carts and paypal payment gateway with only one or two small extra steps, visible and invisible to the end consumer. niralimarwadi: your solution is especially not workable. If an account is hijacked, or a paypal user has bad intentions why would they go out of their way to protect you? simply put, they wont. This is a REAL solution.