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Selling digital goods with paypal

Discussion in 'PayPal' started by streetjammer123, Aug 2, 2008.

  1. #1
    Is there any safe way to sell digital products with paypal . like software , website scripts .

    If some one opens a dispute what info i have to provide as tracking number ??

    etc etc .. please share your experiences and ideas in this thread .

    :)
     
    streetjammer123, Aug 2, 2008 IP
  2. mrinal

    mrinal Peon

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    #2
    They don't provide security for digital products so the scamemr is always benefited.
     
    mrinal, Aug 2, 2008 IP
  3. rendez09

    rendez09 Peon

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    #3
    that means that if they filed a dispute they will always win and get there money back even you already sent the digital item.
     
    rendez09, Aug 2, 2008 IP
  4. broco

    broco Peon

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    #4
    If you are too worry about this you will never make a sale.

    Keep on moving, there are more honest buyers than scammers ;)
     
    broco, Aug 2, 2008 IP
  5. eddy2099

    eddy2099 Peon

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    #5
    With digital items, there is no way to provide a 3rd party independent verification that the services or digital item is delivered as such there is no merchant protection here.

    However, it would be important to do your due diligence first before you deliver the item to determine if the customer is for real or not.
     
    eddy2099, Aug 2, 2008 IP
  6. Pervert-For-Life

    Pervert-For-Life Banned

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    #6
    hello, i sell my softwares and i have face this scam problem so now i do not use paypal anymore.... but if you want to use paypal then remember these points below:

    1) Never accept Un-verified buyer.

    2) Always check the IP and the geo location of the buyer. (Example: If the buyers IP on your website is 12.12.12.12 and when you trace the IP then you know where the IP is from. then you can match the Info of that IP with the adress of the payment email where you see the buyers address. if both geo location dont' match the REFUND the payment because someone else have send the payment and sooner you will get unauthorized transaction.)

    3) Make it clear on your website that customers will get there product on the paypal email. no other email should be used.

    4) Try to use a business paypal account and use the options provided by paypal in there business account... also business account do not show your email address on the top of the payment page which is a good option to avoid spam, phishing emails, cracking attempt. if they dont know your paypal email then they cant try to crack it because now a days there are some crackers that do directory attack on the victim's email to crack the password of the paypal account....

    5) Always make encrypted payment button.

    --------------------------------------------------------

    however i will suggest you to use moneybookers because moneybookers dont allow disputes and changebacks.... very hard to take the money back from you at moneybookers.... also check out my signature link for some good payment processing system that dont allow chargeback or dispute.... so you will not lose your money...

    i hope my information is useful to you...
     
    Pervert-For-Life, Aug 3, 2008 IP
    GTech likes this.
  7. seo_jack

    seo_jack Peon

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    #7
    You could e-mail them the software on a CD, that would be a physical object you can trace.
     
    seo_jack, Aug 3, 2008 IP
  8. RedXer

    RedXer Peon

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    #8
    Take a look at EC Suite, we have protections in place for digital products.

    Including our fraud protection system, V-Scrub, it's level of security can be adjusted to block chargeback prone credit cards.

    We have a 24/7 consumer support center for phone and email inquiries as well. Our consumer support staff are able to test downloads and usernames/passwords for digital content to see whether or not complaints are legitimate when customers send in refund requests or threats of chargebacks. We don't just automatically side with the consumer as Paypal seems to do in disputes.
     
    RedXer, Aug 4, 2008 IP
  9. JMN

    JMN Active Member

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    #9
    e-junkie.com
     
    JMN, Aug 4, 2008 IP
  10. mentos

    mentos Notable Member

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    #10
    I suggest you ask the buyer to choose Service as the payment option
    Because paypal does not cover non physical item
     
    mentos, Aug 4, 2008 IP
  11. goforhunt

    goforhunt Banned

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    #11
    Paypal always honor buyers when it comes to digital products,use money bookers instead.
     
    goforhunt, Aug 5, 2008 IP
  12. tsukara

    tsukara Banned

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    #12
    Well, this would be a good suggestion but you need also to pay for the delivery charges. So that means that you include the delivery charges on the amount of your product.
     
    tsukara, Aug 5, 2008 IP
  13. Chris Blood

    Chris Blood Peon

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    #13
    If its a script encode and license it.:)
    See my signature.
     
    Chris Blood, Aug 6, 2008 IP
  14. nQQb

    nQQb Peon

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    #14
    Chris, I think he wants to know what info to provide to paypal, not how to sell scripts using your license system :p

    streetjammer123, from my past experience with paypal, in tracking field, put "OTHER SEE COMMENTS" and in comments box, put "THESE CHARGES WERE FOR A SERVICE. NO PHYSICAL GOODS WERE PURCHASED. THANK YOU!

    Paypal 99% of the time do NOTHING when the charges are related to SERVICE (labor) so you will not have any chargebacks.

    Now, if you're worried about people doing chargebacks, why not encode your script with Chris Blood's NEWLY developed licensing system. I think he sells his for $20 if you're lucky he didn't raise the prices.

    If you want something more expensive (cannot claim BETTER yet without reviews :)), See my signature too!
     
    nQQb, Aug 6, 2008 IP
  15. Chris Blood

    Chris Blood Peon

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    #15
    Thanks for the nice comments.

    But anyway nQQb's script is just as good as mine. Mine is just cheaper.:)
     
    Chris Blood, Aug 6, 2008 IP
  16. epn

    epn Peon

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    #16
    I believe the delivery cost worldwide through kunaki.com is $1.75 (from memory) which is going to be a good thing in 2 ways.

    1. fewer refunds because you can say 'return the goods and get a full refund' - most wont bother sending you the disk

    2. fewer refunds means your total income (sales minus refunds) could be greater.

    Kunaki is not the only one but I do know of it. You get a free copy of the digital product you upload to their site, so you know what is going out under your name.
     
    epn, Aug 7, 2008 IP
  17. epn

    epn Peon

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    #17
    Forget to state the obvious. Because a Kunaki disk is physical, the Paypal insurance/protection kicks in to protect you the vendor. Or so I believe.
     
    epn, Aug 7, 2008 IP
  18. jetblack

    jetblack Member

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    #18
    According to PayPal User Agreement:

    13.3 Filing Deadlines. We will not grant any Claim unless you first initiate a Dispute in our Resolution Center within 45 Days of the date of the relevant payment and then escalate the Dispute into a Claim within 20 Days of the date you file your Dispute. It is your responsibility to keep track of the deadlines under this section.

    As you see, there is an expiration time in order to open a dispute.
    Lock your software to run 45 days and after that period give a license code to your customer to unlock the limitation. If user open a dispute, the software would stop working.

    Regards,
     
    jetblack, Aug 7, 2008 IP
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  19. epn

    epn Peon

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    #19
    Do you have software in mind that
    does that? If so, details please.

    Thanks.
     
    epn, Aug 9, 2008 IP
  20. jetblack

    jetblack Member

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    #20
    I use Ioncube to encode my scripts. If the code is encrypted, you can do everything to protect yourself.

    Regards,
     
    jetblack, Aug 10, 2008 IP