What can I do to stop this

I have a site selling digital goods in which someone has bought them and the filed for a chargeback via paypal.

I have said that I will be monitoring whether they use them or not as it's illegal if they haven't paid, I'll be able to tell when/if it gets indexed but if they do get their money back I don't think I should just let them use it.

Is there anything else I should do?

 

Paypal offers their service at a much lower fees compared to their competitors because they cut down on the fraud detection components and rely merely on the verification process which seems to be easily foiled as you have seen here on this board.

The only thing I would think is that you do not offer automated delivery and then go through every order manually. Only accept customers who are verified and whose country matches their IP or name.

The other option would be to select a service like 2checkout.com or Plimus.com which actually do comprehensive fraud checks before accepting the sales but this would mean you be paying more in terms of fees.

 

Thanks for the quick response, I'll look into those services.

 

ya but it wasnt fraud
it was a guy with no intent to pay

paypal is the most worthless in protecting the sellers rights. You should win the appeal since you provided a product and can prove the download.

 

I hope so, I've told them in the dispute that I can provide the shopping cart information w/ screenshots if needed.

I think it's terrible how people try to run a business online and there is a flaw in paypal that let people take advantage of it.

They need to do something about it.

 

Paypal started off supporting online auctions where physical goods are being exchanged for money and where there is 3rd party independent proof that goods are delivered. Although they have grown to support virtual items, they did explicitly mentioned that to get seller's protection, the item must be physical. With virtual items, there is no way you can prove you deliver the items as email headers can be forged.

Paypal is definitely not the right platform to use if you are serious about your business which involved virtual items.

 

True, from my defence they automatically get access to the products and get to see them before they buy so in my opinion they have no excuse to claim a refund.

I guess it's one I won't win and put it down to the nature of the online world. Just a shame people are still willing to steal work from other people.

To be honest they won't get any benefit from it because the content they purchased with it has already been submitted to one of my sites and indexed so they will receive duplicate issues when/if they use it.

 

I sell virtual products myself, typically software and one out of about a hundred turns out to be fraud. No matter how I dislike it, it is probably the nature of the business. I've stopped using Paypal when I did a small trial test using it and then fraud rate was like one out of every 20 orders which was really bad. With Plimus, I have the peace of mind.

 

Ah thanks, I'll look into other methods that will help reduce it although this is only the first one touch wood.

 

re: 2checkout.com
they do not have anything to protect sellers,
true, they do a great fraud check, but refund payment as soon as requested by the customer.
will have a look at Plimus...thanks for pointing it out

 

Plimus encourages your customers to work with you to resolve any outstanding issues because a refund or dispute in the favor of your clients would not do Plimus any good. As a vendor, you could sort of win a chargeback claim if it is not a legitimate claim but those which comes from stolen credit cards you would not stand a chance.

In fact if you grant a refund or if the customer does a chargeback, they would be flagged for future purchases.

 

That's a good idea and would help reduce any problems in the future.

 

I've actually been with plimus for over 2 years now so my initial experience is very hazy but from what I was told, Plimus would keep a close eye on your account for the first 60 days where they would manually verify and approve your customers' orders. If there is no incident, you be switched to the automated processing which still have a comprehensive checks.

With Plimus, you can opt for the system to automatically approve the orders or do all the checks and verifications and then leave the final decision to you to decide if you want to deal with that customer.

 

HI

I also get charges backs some times via paypal but I have a feature with our software so we can dis-able it if people do a refund or a charge back..

Thanks
Tom