Hi there ,

I recived a payment in my paypal account .
Payment method was instant !

Is there charge back risk on instant payment ?

yes, the person who owns the credit card may claim they never made the payment

I think you're OK as long as it ships to the verified address.

If you received a Confirmed Address with the payment, and ship physical goods to that address using a method with online tracking, you can qualify for the Seller Protection Policy. (I think there may be additional requirements if it's over a certain dollar amount, so be sure to check the PayPal site for specific information.) The Seller Protection Policy protects you from chargebacks that claim the payment was fraudulent or the item was not received. It does not automatically protect you if a buyer claims the item was not as described; in that case, and in any other cases where SPP does not apply, you would need to provide PayPal with any information you have that can be used to dispute the chargeback with the buyer's credit card issuer.

you can qualify for the Seller Protection Policy

1. If you are registered Company
2. If you leave in Canada, USA, UK, if you leave in europe or some other country ferget about it :))))

I hate PayPal - for non tangible goods i.e. hosting or virtual products they are awful. If someone files a claim against you for some hosting its 100% gauranteed they will win the case... :(

Liam

If the person made payment with a credit card through paypal then they can initiate a chargeback through there credit card company.

They can also open up a paypal dispute against you to try and reclaim the money.

If you fil that you aren't right always is the better idea to pay back yoru self. if you wish to go up with business ;)

I hate PayPal - for non tangible goods i.e. hosting or virtual products they are awful. If someone files a claim against you for some hosting its 100% gauranteed they will win the case... :(

Liam

That is true for credit card payment but not for payment from a PayPal account. The simple fact is that all 3pp's will charge you if the credit card company issues a chargeback. Doesn't matter of the goods are physical or non tangible.

Paypal is excellent for selling non-tangible goods. If someone files a complaint, and you disagree, you can simply put NON-TANGIBLE/WEBHOSTING in the complaints "shipping tracking ID" field and you'll automatically win (unless it was paid via credit card).

--Tina

Really ? I've never put it in the shipping field but I have made it very clear that it is non-tangible/hosting and always always lost after providing them with their full address etc

Regards

Really ? I've never put it in the shipping field but I have made it very clear that it is non-tangible/hosting and always always lost after providing them with their full address etc

Regards

The non-tangible/hosting bit has worked for me every single time. I learned that trick from another WHT member awhile ago. :)

--Tina

Really ? I've never put it in the shipping field but I have made it very clear that it is non-tangible/hosting and always always lost after providing them with their full address etc

Regards

It would work if it is a Buyer Complaint, because PayPal doesn't allow members to file Buyer Complaints for intangible goods. However, if the customer has filed a chargeback with the credit card issuer, then it's more difficult to dispute it in the case of an intangible goods sale. For chargebacks, you can't simply say "it's digital goods", but if you can show evidence that would help in disputing the case (e.g. the buyer claimed non-receipt but you can show they received & used the digital goods) PayPal might be able to get it overturned by sharing that evidence with the credit card issuer.

Not always, but once in a while PayPal will side with a buyer in an obvious hit-and-run case with intangibles, like hosting or payments for games and the like. They try not to interfere; but they will intervene if (a) any sort of fraud is occurring or (b) buyer has huge rep.

I've been lucky enough to have very good standing with PayPal, and I rarely lose a dispute.

I've had a few reversed for various reasons and on a couple they did actually reimburse me because of the good rating... strange how they work sometimes though... one staff member says one thing and the next another thing.

The non-tangible/hosting bit has worked for me every single time. I learned that trick from another WHT member awhile ago. :)

--Tina

Same here... I always write non-tangible virtual good, and that's it. PayPal has no (or very little) protection for the consumer buying a non-tangible good via PayPal.
Likewise, I am always wary about spending a lot of money on a non-tangible good via PayPal.. I always use credit card.

Id like to find a better way I have had at least 4 chargebacks since I been doing hosting and services. 2 was probably for stolen paypal accounts. 2 was for people I verified by email, phone, and information and simply said the funds were unauthorized and got their money back.
In reality you can buy all the digital goods you want, get the goods or service and then say your account was stolen and get your money back while the merchant is just left screwed. I have looked into this thoroughly and even provided paypal with extensive proof both times and they just say to qualify for selling protection I have to provide shipping proof tracking info and all this, they are all idiots and dont care if you lose money or not.
They really need to fix this "unauthorized funds"bit. I see people get screwed on ebay all the time like this.
I dont see how anyone can really "love" paypal, sure you use it because everyone else uses it and it is the leading e currency but I just dont see how merchants and sellers could actually be positive about paypals policies and customer service.

I will look in the non tangible good thing, now I am just using a premier paypal account, not even a business account. As I really dont make that much money and its mostly a hobby at the moment I will probably have to stay with the account level I have now.

Hello everyone.

I would like to share my experience on charge backs and how I've won every single one of them. I'm refering to non-tangible, intangible, virtual, digital goods (or whatever you want call it...I'll use digital good for this example). I also want to point out that I don't require anyone to have a PayPal account to be able to purchase. I use IPN to get around the fraud.

PayPal IPN (Instant Payment Notification) is really awesome. In short, PayPal sever talks to your sever to notify you of the paypment process status instantly.

So anyway, someone buys a $75 software from me during the Christmas holiday. 37 freaking days later, PayPal contacted me saying the buyer filed a charge back. To give PayPal some credit, they did point out on their email that charge backs are common fraud. PayPal wanted me to log in to the site so that I can follow their procedures. Forget that, I just replied to the email and gave my case.

Before I tell you what it is, let me brief those who don't know a little about the ins and outs of PayPal's IPN process.

----

The buyer is redirected to the PayPal site containing a page that has the price of the product along with other info I wished shown.

Each step during the payment process, the PayPal server communicates directly to my server through the script I wrote utilizing the PayPal API.

On the script, there's a "VERIFIED" string that I must catch, which is a signal that everything went well and there is now money in my account from the buyer. If I don't get that "VERIFIED" string, I do nothing!!! And the so called buyer gets nothing! PayPal advices that if you don't get a "VERIFIED" string, that you further investigate it.

So once they are verified, I now have access to POST data which contains details such as payment cost, tax, transaction fee, etc. But one thing that is very important to me is the buyer email.

Now this is the part that has been a saver for me. This is somewhat what I told PayPal of how I handle instant downloads.
Once I get the buyer's email through the POST data, I will write an entry in the database containing a unique ID for the transaction. Then an automated email will be sent to the buyer containing a "thank you" and link to a script on my site. The link is only unique to the buyer and the transaction and is not referenced to anyone else. If they click (or type or copy/paste in the url) the link, the script will connect to the database and verify that the buyer is aware that he bought the digital good. Once I verified it, I will then proceed and have the download process begins.

If you're doing hosting, you can have the script activate their account instead of processing the download.

Warning
Actually, since I don't require them to have a PayPal account, I can be considered lucky. All the charge backs I had was with buyers having an existing PayPal account. So even if their username and password had been stolen, the chances of the thief having access to their email account is very slim. And considering that the buyer must open their email that PayPal has on record means a little added extra security. So since homeboy opened up his email to access the link in the email less than one(1) minute later means that the probability is high that it is him that made the purchase and not anyone else. So when he files a charge back claim, he loses.
----

The bad part is that PayPal charges me $20. But that's better than giving away $70 of software that I worked hard for.

I'm not saying people should do what I do as far as checking for integrity, but it has worked for me. Not requiring users to have a PayPal account increased my sales by like 30% (guess!). Surprises me sometimes that I have won every single charge backs through PayPal with non-tangible items! PayPal even told me that I'm not protected through that and especially with digital downloads and then closed my case. But I emailed them back and told them about my instant download process and I was able to convice them.

I think PayPal even had someone bought one of my software to see if I'm telling the truth. In the end, I can safely conclude that PayPal will be on my side for any future charge backs.

nice post, I will look into it more but both times I was changed back I had verified their paypal email address, phone number, and anything else I could, still didnt do any good