Hi All

i running a web hosting business, accepting payments via paypal,

few days back one person purchased a webhosting account and domain name, for that he sent payment in paypal, i registered a domain for him and activated hosting account, after 3 days paypal sending me a mail that was "Unauthorized Claim" and reversed that payment to buyer..

what is going on?? really i cant understand, customer sending payment and purchasing service then reversing payments from paypal, they making us fools..

i think paypal helping to this scammers..

how can identify scammers transaction??
how to protect from them??

sorry for my bad english

Welcome to the world of hosting :)

chalk it up to costs of doing business and be more vigilant about fraud detection

prabhu u can make dispute on them << snipped >> if u have any problem in that trasaction please PM i will help u in this issue

you probably had one of them clients, see the topic at URL:
http://www.webhostingtalk.com/showthread.php?t=692461

i think paypal helping to this scammers..
No, simply trying to protect the innocent PayPal clients, but in some cases they protecting the scammers.

how to protect from them??
do the ID verification checks, mutch the IP location and install/integrade the Fraud protection like Maxmind.

if you having the "Unauthorized Claims" simply refund the money and suspend the hosting account for Fraud activities.

Since you're providing a service, chances of you winning the dispute with paypal would be slim, unless it is tangible goods.