I am going to start doing business via paypal.But some days back I read one post in DP about a big fraud thing happend to a DP member.He got some offer to have an exchange of paypal with some new member for more cash.After the deal he got money to his paypal and some minutes back the money was refunded to that new member who give offer.The member who get into trap got a mail saying that his transfer is canceled !!! So my doubt is that if I am selling someone through paypal and after receiving the product he cancel the fund : what will I do ? Any alternatives for paypal ?
The problem with that transaction is that virtual services are not protected by Paypal and to make matters worst, money exchanges was explicitly mentioned by Paypal in their AUP to be against policy. Don't get me wrong. I do feel sorry for the member who suffered but I guess in the end, it was a lesson to be learnt. Paypal's strength is in physical products with 3rd party independent proof of delivery. It is not to say that virtual products cannot be traded. It is just that you need to be careful with who you deal with. In the past, a Verification status with Paypal used to mean something but ever since people started using VCC to verify, verification does not give any assurance anymore because cannot can sign up, use an unverified VCC to get a verified paypal account. So if you are dealing with physical product, make sure that you have proof of delivery, make sure that you use a trackable delivery system and if have a signature, it would be best. I have dealt with other services such as Plimus, Regsoft, Share It and Swreg for the sale of my softwares, all of which are virtual. For the most time, people are generally honest but I did encounter several chargebacks before and there are some which I lose. The thing is that as long as you do not have a signature of the customer, the merchant is always at the losing end. However, like I said earlier, most people are generally honest so you should be okay. If anything that seems too good to be true, it usually is too good to be real. If in doubt, call the other party, ask for verification or whatever your business policies are.
If you sell physical products always send them with tracking number. Then if he claims he didn't receive them just show PayPal the tracking number. If the package gets lost in the mail you can just tell them that you can't be responsible for the postal service's actions. If you send international just say that you can not be held responsible for that countries postal service. I always tell before sending something that if it's problem with the post service in my country I will be responsible and take all actions possible before refunding the money. PayPal mostly understand this and the customer as well. For Digital Products it's a bigger problem. I have not so much experience with this But if the item isn't against policy I don't think there is any problems Otherwise you can always show them the e-mail where you sent the products. Make sure that you send the Digital goods to the same e-mail address as the PayPal payment was sent from. If the customers isn't happy with the product then just say that's not your problem. You delivered what you promised. If he don't like it that's to bad for him Anyway it's good that you're specific before receiving a payment Hope this helps! Good luck!
Now, they must ask for verification of address of street address and ask users to fax the credit card statement for them to be verified..it'll solve few problems atleast!