Within the next month or two I am going to release a script for sale on DP. I wish to use PayPal as it's the most widely accepted and convenient method by my understanding. I am aware of the risk of the buyer losing out to the seller who submits a "chargeback" since the seller can not prove the item was shipped. To avoid this, is my only option to mail out the script on disk? I'd rather let my customers get their items instantly through the internet... An alternative I was thinking is that I could make my script require an activation key within 5 days (Just like Windows activation), and I would mail that key to them. This way they could get the script instantly but I still get a little paper trail to prove that it really happened. Finally, what if I just mailed a Thank You / extra instructions booklet? Would PayPal accept postage details for that as proof of delivery? I've never really gone commercial with PayPal so I hope you can appreciate my concern and lack of understanding in this area. If you could offer any advice, that'd be great. I'm heading off for four days now so I wont be able to check up on any replies 'till then Thanks!
I'd say the activation key option is the best. You could always link the script and registration code together, so if a chargeback happens, you can disable the corresponding registration code and block the script. Well, that's what I would do anyway! Hope this helps.
Thanks for your thoughts. My main concern here is not so much losing out to chargebacks while the person escapes with a working script (I'll write a licensing system), rather, I'm concerned about my PayPal account eventually getting canned if multiple people try to scam me through the chargeback system - I hear that an account with many charge backs gets shut down, is this the case? What would be the bare minimum shipping proof I'd have to provide for PayPal to sleep well at night knowing I'm not a liability?
Chargebacks can only happen once if you read the TOS, you are acutally not supposed to do chargebacks. So if the person did do that, they would put their paypal account in jeaoporday
Or just make an activation key, one per use like a serial key. Also ask them the domain they will be installing the script on and allow up to 3 domains per script. Keep a database of the domains and license numbers, if an unlicensed domain with unlicensed key accessed the DB then make the script give out an error and not run. If someone charges back through paypal then just disable or delete their domains/serial from the database and the site is not work.
With Paypal, if you're honest, you lose. So you need a trick to make it. I'll sell the script instantly and if a chargeback occur, I'll send an empty envelope with tracking number. You'll be cover that way because they do not care about anything BUT the track number. I remember I bought something on Ebay from Virginia. Never get the item but a track number was available. It was from an item from China to California and I was in Tennessee. Well, the track number was enough. I never get the item neither money back. So, be careful, there are plenty of way to scam legally with Paypal....
I think Paypal has pissed alot of sellers off, I was one at one time. Google, PayPaySucks. You go here http://www.paypalsucks.com/forums/showthread.php?fid=12&tid=10290 and here http://www.nopaypal.com/paypal-seller-protection-policy.shtml Here http://paypalsucks.org/
Sending the activation key via mail is very smart. You could provide it via email only AFTER you have confirmed delivery of the mail. imho the real question is how much is your product. The cheaper the product the less risk you have. Normally thieves target higher ticket items that they can resell in forums like this. They love to pirate script and claim they have reseller rights as well. Your best script protection is encryption with a license key. Then if payment goes bad...you can pull the license. phpaudit is a fairly good program if used with ioncube encoder.
I like this idea the best, as this is the way I would go personally. Plus you have alot of power when it comes to an invalid keys coming in, just gotta be creative.
No need to worry about chargebacks, use a licensing system and turn off your script with just one click! See my signature for a possible licensing solution.
I've been selling scripts as well using licensing and encode files, its the way to go. With Paypal, i have not had any actual 'real clients' put a chargeback on, however, I have had Paypal reverse numerous purchases as many of these Paypal users use stolen credit cards...
Yup licensing and encoding is what I do too. Check out the link in my signature to see my license system which i use and sell to help me and others protect scripts