Hello, I am currently selling virtual game items worth quite a bit of money ($100-500). The problem is that people always charge back on Paypal after they get the item. I was wondering what would happen if I received money on an account with fake details, then spent the money before the buyer charge back. My account would then go into negative but what if I don't pay back what I owe? What would the consequences be if it was a fake account? Would they still be able to track my IP? Will I have to use a VPN?
The moment they discover that there is any kind of problem your account will be frozen - and it might be while there is still money in there. You'd be better off re-tooling your games so that they have to ping your website and if the buyer has done a chargeback then the game reverts to demo-mode.
Will the police or debt collector be knocking at my front door? Is there still a way for PayPal to find out who I am?
Maybe, or maybe not. Yes. Not only your original account being blocked, but also you will never be able to create a new one. The information will be distributed to the global bank network. The banks might block you for transactions, you will never able to get a credit card under your name. Your closest relatives --wife or husband, brothers or sisters, and probably children, too-- will never be able to get a high rank position in monetary business. The banks know who you are. And not only that. If you do that, people will hesitate to deal business with you, they will fear of being scammed. Basically you will return to prehistory: without banks, credit cards, formal jobs, etc, etc. You can still use gmail, but your Adwords or Adsense account will be eternally banned. Go figure.
If you are looking to make money in the internet industry, do not do that. News spread fast. People knows without you are aware of. Karma always comes back. Read and re-read my post above. Unless you are an orangutan or gorilla, you need to think about your family, first. And your future family. Do you not care at all if your brother or sister or your spouse can not get a decent job because of you?
Perhaps you need to explain why you are not willing to consider having a more effective licensing policy?
lol, you haven't screwed up before. It's amazing how being "tainted" can impact the rest of your life. Down here in NZ the Government is trying to bring in tax laws where a family member's financial activity could move you into a different tax bracket. Never mind that you are estranged, living in different cities, have no financial ties...
In Indonesia, if you screwed up with financial system, your brother-in-law can not be a bank director. That's exactly what I have heard from my wife. Also, rumor has it that a new system is started to being implemented to watch your financial activities to be monitored within (at least, South-East) Asian countries.
Well if you are doing genuine business and selling a quality and genuine product then you don't need to worry about these things but it looks like from comments that your business is not genuine. If this is the case then you will not keep the trouble away from you as it will come soon or later towards your way. So it will be good to do an honest business and make your credibility. Thanks