Would not accepting credit card transactions protect you from chargeback scam?

Discussion in 'Payment Processing' started by Mazakustrum, Jun 10, 2014.

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  1. #1
    I'm planning on using paypal and I'm thinking of only enabling payments using a paypal account to avoid any kind of chargeback scam from occurring in the first place.
     
    Mazakustrum, Jun 10, 2014 IP
  2. pingpipe

    pingpipe Active Member

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    #2
    If the buyer is funding their PayPal account by using their credit card you could still be subject to chargebacks the same way if a credit card was used directly.
     
    pingpipe, Jun 10, 2014 IP
  3. Mazakustrum

    Mazakustrum Peon

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    #3
    I see...do you know how much the paypal fee is for chargebacks?

    Would selling cheaper products like a 3 dollar product result in lower fees in case there is a charge back?
     
    Mazakustrum, Jun 10, 2014 IP
  4. jestep

    jestep Prominent Member

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    #4
    Paypal actually makes it worse. If a customer loses the dispute in paypal, then they can go to their bank and request a chargeback with their bank. It essentially gives them 2 chances to make a chargeback if they paid with a credit card. Paypal does have seller protection for certain types of transactions, but these must be a physical product as far as I know.

    As far as chargeback fees go, it doesn't matter what the sale price is. The chargeback fee is more of an administrative fee that the issuing bank charges to handle the dispute. Paypal charges $20 per chargeback (not internal dispute). Most traditional merchant service companies charge $15 - $35 per chargeback.
     
    jestep, Jun 11, 2014 IP
  5. Nico617

    Nico617 Peon

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    #5
    What kind of business are you running?? Depending on the industry your chargeback risk will vary.
     
    Nico617, Jun 17, 2014 IP
  6. O-D-T

    O-D-T Member

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    #6
    It might not be exactly an answer you are looking for, but you may consider Bitcoin to avoid chargeback problems.
     
    O-D-T, Jun 18, 2014 IP
  7. Hungryforsuccess

    Hungryforsuccess Active Member

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    #7
    What can cause a charge back to be investigated ?? And who investigates the buyers charges ? What country do these people do this scam in ?
     
    Hungryforsuccess, Jun 22, 2014 IP