Web Hosting Talk







View Full Version : Dedicated server not being a physical good in PayPal


pmak0
05-26-2006, 09:27 PM
With dedicated servers not being a physical good in PayPal, have you ever thought of doing a trick that makes it into a physical good?

Like say, a customer buys a $100/mo server from you. Then you sell them a card that you will send them through the mail. The card contains their IP address and root password, and that's what they're paying $100 for.

Would this make one eligible for PayPal seler protection for the first month?

Techark
05-26-2006, 09:40 PM
First I think you are in the wrong forum this is hardly a technical question more running a business question.

Second to what end would that be? Once you got the card then the contract as far as paypal is concerned would be filled if it contained the correct data.

Third it would mean whomever leased the server would have to wait for a card to arrive in the mail before they could use their server.

pmak0
05-26-2006, 09:45 PM
Second to what end would that be? Once you got the card then the contract as far as paypal is concerned would be filled if it contained the correct data.

This would only be for cutting down on fraud for new customers, not current customers.

Third it would mean whomever leased the server would have to wait for a card to arrive in the mail before they could use their server.

It might be useful for people in countries that have high fraud. Or does the seller protection only cover certain countries in the first place?

Apolo
05-27-2006, 12:54 AM
Moved from Dedicated Server Forum to Running a Web Hosting Business Forum.

alpha
05-27-2006, 02:57 AM
I think pmak0 is referring to PayPal's Seller Protection policy. If someone pays for a dedicated server via Paypal, the seller can protect themselves by sending the customer a physical item that you can track online because this is the main thing that Paypal asks for when you get a chargeback or complaint from the buyer. (Actually, from my experience a few years back, they don't ask for anything BUT proof of delivery of whatever item that was paid for even though I stated to them repeatedly it was a service).

I can't see how this would work for recurring paypal subscriptions. Paypal may be able to protect you (the seller) for the first month after you send them proof of delivery but let's say it is the end of the second month and the buyer does a chargeback of the second month's fees they paid. (Unless you send them something every month...)

KGIII
05-27-2006, 03:15 AM
Call and verify... If you have ANY doubts then anyone spending the money to justify your costs for offering a dedicated server (unless you're offering them at rates I can't even begin to imagine) can afford to call your number and you can trace it. You may even institute additional policies such as ensuring a 7 day wait time - you'll loose some customers perhaps but you'll have far fewer fraud complaints.

Registered mail and in that mail a contractual agreement specifically aimed to support paying for the server for as long as they continue using it? What ever... Consult a lawyer and not forum members would be my suggestion.

KGIII

alpha
05-27-2006, 05:30 AM
Call and verify... If you have ANY doubts then anyone spending the money to justify your costs for offering a dedicated server (unless you're offering them at rates I can't even begin to imagine) can afford to call your number and you can trace it. You may even institute additional policies such as ensuring a 7 day wait time - you'll loose some customers perhaps but you'll have far fewer fraud complaints.

Registered mail and in that mail a contractual agreement specifically aimed to support paying for the server for as long as they continue using it? What ever... Consult a lawyer and not forum members would be my suggestion.

KGIII
IMO, this isn't exactly a legal issue... this is an issue of how to take advantage of the seller protection policy offered by PayPal if you are a service provider. Believe it or not, there are people out there who do chargebacks even though they are the ones who ordered the product and/or service. Why? Perhaps people forgot what they bought or perhaps they were planning on starting a chargeback from the beginning for a month of free service.

In the end, it is a question of whether or not PayPal would consider this method of selling intangible goods against their seller protection policy.

Shahbic
05-27-2006, 05:34 AM
With dedicated servers not being a physical good in PayPal, have you ever thought of doing a trick that makes it into a physical good?

Like say, a customer buys a $100/mo server from you. Then you sell them a card that you will send them through the mail. The card contains their IP address and root password, and that's what they're paying $100 for.

Would this make one eligible for PayPal seler protection for the first month?

:peace:
then it going be like as online gift card