Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Paypal Payment reversed by two Fraud clients!!!!

[techwacky]

ok. so here is the situation. this went so fast that i couldn't understand paypal policy for merchants protection.

client 1 has made payment on 23 feb 2011, with paypal using whmcs backend for a specific service.

client 2 has made payment on 1 march 2011, with paypal using whmcs backend for a specific service.

now after using the service on 5th March 2011 they both opened a dispute as unauthorized claim

screen shot: http://screensnapr.com/e/LAw4rj.png

and they both got there money back on 6th March 2011. when i was in sleep. i just found out this morning.

screen shot: http://screensnapr.com/e/gna73d.png | http://screensnapr.com/e/5RE75v.png

i mean i never had a time to contact with them. how come paypal just hold the money and reversed the payment to them instantly????

this is ridiculous.

P.S: We operate Paypal Business account

i also see that every time a client made a payment i see from paypal that seller protection is not eligible. how can i fix this for whmcs billing.

[BELLonline]

It may have been a credit card chargeback rather than the customer going through PayPal's own dispute system. In that case, PayPal have no control over it as it's the user's card issuer that is reclaiming the funds.

I'd strongly recommend using a fraud detection service such as Maxmind to reduce the number of fraud orders that you get. It really is worth doing - they check all kinds of things such the distance between their actual location and where they have entered, whether using a proxy, etc.

[eth00]

Probably a stolen account which is more uncommon then would be preferred. When posting screenshots you should really remove any personal information like names before posting them.

In the future you should look at what you can do for anti-fraud.

[Subodh M]

We too had a similar experience this week. But we issued a refund ourselves even though paypal allowed 7 days to respond. Because we were already suspended his service as we found that he hosted a "paypal phishing site" in our server. So we didn't needed to think too much to assume that it might be a stolen account.

[musicman153]

Did you try calling PayPal and asking? I've found they are fairly good at resolving issues and letting you know why things happen.

[Kusai]

The amount looks small, and a huge lesson for you. Apart from maxmind and other anti fraud detection system always "always" check the order manually and trust your intuition.

[m8internet]

I always check all orders manually, especially those where the PayPal account is unverified

As above, compare the address on the account in WHMCS to their PayPal account

Nextly, compare the email address on the account in WHMCS to their PayPal account (although it is not always the same)

If in doubt, contact the customers email address in WHMCS and ask them confirm their PayPal email address

I usually have to do this where they are diffrent people, one person administers their account, another pays for the payment

[JDNYSD]

Start checking for fraud, use Maxmind it works wonders. They're automated calling feature is even better!

[tacgrp]

Its called doing business. Nothing you can do, you will get enough clients that it over rides these chargebacks your business gets.

[craig joe]

imho, the real frauder is your "customer"
the cc chargeback commonly happen on the first dates of the month

[tickedon]

Really echo everything everyone has said already Prevention and order checking are very important, and it's also something you're just going to have to get used to.

For that reason, I would also suggest spending a bit of time studying the Paypal protection policies so that you understand how they work, what they include and what they exclude - this information will allow you to respond quickly and concisely, to maximise your chance of defending a claim, *when* it happens again (not really a question of "if"!).

Sometimes though, it's just easier to refund them and be done with it.