How to Fight PayPal Claims & Chargeback Tips

[H0std3m0n]

It just seems ignorant to overlook the direction the buyer/seller relationship is going though these days. The financial institutes almost always side with they’re cardholders while Merchant Gateway Processors give in and alot of Customers won’t start taking financial responsibility for their purchases. Guess that leaves the Merchant holding the short straw on this one.

Although Internet fraud has been on the rise for years, we have always chalked up “Internet fraud as just part of running an online business.”

There are some basic methods for preventing fraud like:

* Using Varilogix Fraudcall and Maxmind to help determine the risk assessment of fraudulent orders placed.
* Screening orders Manually to reduce charge backs and unauthorized signups. Common sense goes a long way and if the order looks wrong it usually is.
* Performing Phone Verification
* Rejecting high risk countries
* Blocking orders where the user is ordering through a proxy

In an effort of dramatically reducing refund rates on e-products, all downloadable products and/or electronic services you sell such as web design solutions, hosting plans, etc, *must* also be shipped with something tangible such as a CD-ROM copy, with tracking and preferably with a delivery signature.

Without some form of proof-of-delivery, you will have a needlessly high refund rate and a zero (0) chance of winning chargebacks, and will lack documentation available for verifying disputed accounts.

We recently started including a copy of the proof-of-delivery tracking, a copy of the transaction receipt showing a positive AVS (address verification) and card code match, and any customer support tickets or e-mails from the customer that would prove they did indeed receive the product.

What you have to consider is weather the packaging and shipping cost for electronic goods/services are worth it? Something you can see & touch can be used as another form of marketing which will bring added value and band awareness to your company.

Following these tips will grant you eligible for Paypal's Seller Protection. If your accepting credit card payments than it equally helps protect yourself.

The advice given by many to combat PayPal temporary hold of funds due to buyer claims of authorized charges, has been to type in "intangible". Truth is, this method only frustrates all parties involved and simply stalls the investigation, which will end up reversed in favor of the buyer. This method can also get your Account taken away in some cases.

My method is not fraud proof by far as there are many other types of claims. Most other claims can be fought with common sense and the methods mentioned above.

I hope this helps those going through the constant battle of chargebacks and PayPal claims properly educate on dealing with fraud.

[greggcz]

Sometimes delivering server information via mail (UPS, Fedex) wins credit card chargebacks (if the physical address matches the card address) as some banks treat it as proof of service delivery.

-Gregg

[pacwebhosting]

Hi,

I would recommend using Verified by Visa and Mastercard Secure Code.

If a customer authenticates using this method the liability shifts from the retailer to the card provider.

This is not used on all cards/countries currently but I would advise those that are able or can get access to use VBV and MSC do.

Thanks

Paul

[DatabaseByDesignLLC]

I have been told by PayPal that if the object is intangible (web hosting) PayPal will take the side of the seller (dispute), although if a customer performs a charge back, they become your proxy for the fight. I have yet to see the outcome of a charge back via PayPal.

[HostiaWeb.Com]

Hello

Thanks for the information. really helpful

[talkntickets]

I would recommend using Verified by Visa and Mastercard Secure Code.

PayPal also provides a verification process. Insisting customers pay through a verified PayPal account (or complete the verification process within a certain time period) should help to reduce the risk of fraudulent transactions.

[Goldtree Hosting Ltd]

Hi,

Paypal is an excellent way to take payments online, like all methods they have their pitfalls etc.

Thanks

Goldtree Hosting Ltd
www.goldtreehosting.com

[tony1234]

it was very nice to read this all

[Adara]

To prevent "significantly not as described" PayPal charge backs be sure to describe all auctions accurately and tell buyer about all flaws and damages the item for sale might have. It is a good idea to insure all packages being shipped. Items broken in transit are a common reason for a customer filing a "significantly not as described" claim. If a customer files a claim for an item broken in shipment, PayPal will find on behalf of the customer and tell her to return it to you for a full refund. Insurance will allow you to recover at least some of your loss from the shipping company.
Following these steps will help to protect you from a PayPal charge back under the Seller's Protection Policy if your customer is filing a charge back because of non-receipt of goods. The Seller Protection Policy does not protect you from a charge back if the customer claims the item he received was different from the item you described in your auction. In these cases the claim is reviewed by PayPal and a determination is made by them on an individual case basis.

[URPad]

Very nice pointers. I will have to use these.

[Technut]

It just seems ignorant to overlook the direction the buyer/seller relationship is going though these days. The financial institutes almost always side with they’re cardholders while Merchant Gateway Processors give in and alot of Customers won’t start taking financial responsibility for their purchases. Guess that leaves the Merchant holding the short straw on this one.

Although Internet fraud has been on the rise for years, we have always chalked up “Internet fraud as just part of running an online business.”

There are some basic methods for preventing fraud like:

* Using Varilogix Fraudcall and Maxmind to help determine the risk assessment of fraudulent orders placed.
* Screening orders Manually to reduce charge backs and unauthorized signups. Common sense goes a long way and if the order looks wrong it usually is.
* Performing Phone Verification
* Rejecting high risk countries
* Blocking orders where the user is ordering through a proxy

In an effort of dramatically reducing refund rates on e-products, all downloadable products and/or electronic services you sell such as web design solutions, hosting plans, etc, *must* also be shipped with something tangible such as a CD-ROM copy, with tracking and preferably with a delivery signature.

Without some form of proof-of-delivery, you will have a needlessly high refund rate and a zero (0) chance of winning chargebacks, and will lack documentation available for verifying disputed accounts.

We recently started including a copy of the proof-of-delivery tracking, a copy of the transaction receipt showing a positive AVS (address verification) and card code match, and any customer support tickets or e-mails from the customer that would prove they did indeed receive the product.

What you have to consider is weather the packaging and shipping cost for electronic goods/services are worth it? Something you can see & touch can be used as another form of marketing which will bring added value and band awareness to your company.

Following these tips will grant you eligible for Paypal's Seller Protection. If your accepting credit card payments than it equally helps protect yourself.

The advice given by many to combat PayPal temporary hold of funds due to buyer claims of authorized charges, has been to type in "intangible". Truth is, this method only frustrates all parties involved and simply stalls the investigation, which will end up reversed in favor of the buyer. This method can also get your Account taken away in some cases.

My method is not fraud proof by far as there are many other types of claims. Most other claims can be fought with common sense and the methods mentioned above.

I hope this helps those going through the constant battle of chargebacks and PayPal claims properly educate on dealing with fraud.

Very well wrote as we do COA of 100% of everything you said. Even though you still have to prove your position to all to reverse a chargeback that the financial institutions will place at the slightest whim of the buyer regardless of what you are selling, intangible or not. As time is money, so any chargeback will still cost you in the end, not withstanding winning the chargeback judgment or not!

[buythiscomputer]

How to fight a chargeback when seller is not in US ?
Customer ask chargeback for false reasons !!!


Hi,


When a US customer ask a chargeback to his credit card company Paypal pretends to help, but they never do anything and just give the money back to the seller for no real reason.

Is there any easy way to fight a chargeback, especially when you are not in US ?

Chargeback is such an easy way for cheaters to order whatever they want for free, it's unacceptable !

I'm desperate as just 1 charge back cancel the profit of 10 orders or more and I don't have so many !


Thanks for help.

[ultimatehostings]

One of the ways would be to have your customers signup a authorization form where they sign and send it back to you stating that they've authorized the transaction especially in cases of dedicated servers.