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  1. #1
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    Unverified Paypal

    I got few web hosting orders via paypal. I saw some of customers paid from Unverified Paypal accounts.

    Is there have a risk taking payments from Unverified Paypal accounts?

  2. #2
    As far i know unverified its because they still doesnt confirm their paypal account with their personal debit or credit card to claim legitimate in paypal side.

    Since they still unverified then have limit for sending and receiving amount.

    Regarding payment there is no problem because nothing correlation between it, but for more trusted information you can contact directly to paypal support asking for this or maybe another here will share their experiences to give you clearly reference

  3. #3
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    From past experience, about 9 out of 10 orders that were paid from unverified PayPal accounts were fraud. If it's also a free email address, there's a 99% chance of fraud. That's why we always cancel & refund such orders immediately, send a polite email to the client explaining why we have declined the order and ask him/her to choose a different payment method, or submit a new order after the PayPal account is verified.

    If you decide to accept payments from unverified accounts, at least make sure to monitor the account's activity and the email queue closely.
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  4. #4
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    Don't worry about them, un-verified means they haven't gone though the process like a few of us have:
    - Verifying bank account
    - Verifying debit / credit card
    - Verified their address
    - Verified their phone / mobile

    All them which are required by Paypal to be verified.

    I think about 80% of PayPal users aren't verified.
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  5. #5
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    If a customer decides to pay as a guest through Paypal the payment will be from an unverified account, this does not mean its fraudulent.

  6. #6
    No, they are not necessarily fraud. we have more fraud from verified customers other than unverified ones
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  7. #7
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    Quote Originally Posted by MH-Stefan View Post
    From past experience, about 9 out of 10 orders that were paid from unverified PayPal accounts were fraud. If it's also a free email address, there's a 99% chance of fraud.
    I don't believe this is necessarily true. We have numerous customers sign up and make payments with unverified paypal accounts and with unconfirmed addresses. There are many people out there who have paypal accounts for the sake of sending and receiving money for personal use. These people may not always want to or feel the need to link their bank and credit card details yet they have a balance on their paypal which they would like to spend online.

    In fact, we even have local customers who would pay us with paypal sometimes and their accounts are unverified, simply because they do not feel the need to go through the process of getting verified.

  8. #8
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    Quote Originally Posted by MH-Stefan View Post
    If it's also a free email address, there's a 99% chance of fraud.
    A majority of customers and users use free email addresses...and many hosts will suggest to have one for signup purposes in case your domain goes down or there's an issue during migrations.

    I used to have a yahoo email for that reason. If the host went down and my email went down, I still had a way of communication between the host and myself. That was a while ago.

    Also a lot of site owners, even from blogs with thousands of visitors just use gmail accounts and have their domain emails forwarded to gmail.

    Would you also block a reputable site because they used gmail?

  9. #9
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    Quote Originally Posted by CW Mike View Post
    Don't worry about them, un-verified means they haven't gone though the process like a few of us have:
    - Verifying bank account
    - Verifying debit / credit card
    - Verified their address
    - Verified their phone / mobile

    All them which are required by Paypal to be verified.

    I think about 80% of PayPal users aren't verified.
    Where did you get that number from?

  10. #10
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    Quote Originally Posted by Hannan View Post
    No, they are not necessarily fraud. we have more fraud from verified customers other than unverified ones
    I agree. This is probably because the ones with the verified accounts actually paid with their credit cards (stolen or not) and issue chargebacks to get refunds. While the ones who are unverified are most likely paying with whatever is in their paypal account balance, which cannot be charged back directly via credit card company/bank.

  11. #11
    Quote Originally Posted by GeneZSolutions View Post
    I agree. This is probably because the ones with the verified accounts actually paid with their credit cards (stolen or not) and issue chargebacks to get refunds. While the ones who are unverified are most likely paying with whatever is in their paypal account balance, which cannot be charged back directly via credit card company/bank.
    What I think is, they usually hacked the accounts with phishing attacks! and use their legitimate PP accounts.
    and in my experience 90% of our new orders with women's names are fraud!
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  12. #12
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    Quote Originally Posted by 48-14 View Post
    A majority of customers and users use free email addresses...and many hosts will suggest to have one for signup purposes in case your domain goes down or there's an issue during migrations.

    I used to have a yahoo email for that reason. If the host went down and my email went down, I still had a way of communication between the host and myself. That was a while ago.

    Also a lot of site owners, even from blogs with thousands of visitors just use gmail accounts and have their domain emails forwarded to gmail.

    Would you also block a reputable site because they used gmail?
    Actually, I was referring to the PayPal email address, not the client's email address. If the PayPal account is unverified and uses a free email address, our alarm bells start ringing. I don't know about you or other hosts, but in our own case most payments from unverified PayPal accounts ended up with a charge-back. Whether it's coincidence or not, since we stopped accepting payments from unverified PayPal accounts, we never had a charge-back or dispute at PayPal again.

    It's always a case-by-case decision that depends on the fraud score and other factors. If we decline an order from an unverified PayPal account, we still give the client the option to choose a different payment method or submit proof of identity if they don't want to verify their PayPal account. This method was reasonable for both sides so far.

    As for the email address that the clients provide us for their billing account - of course, we always recommend them to use one that isn't hosted on our network in case something goes wrong. There's no problem with that.
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  13. #13
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    Quote Originally Posted by MH-Stefan View Post
    Actually, I was referring to the PayPal email address, not the client's email address. If the PayPal account is unverified and uses a free email address, our alarm bells start ringing. I don't know about you or other hosts, but in our own case most payments from unverified PayPal accounts ended up with a charge-back. Whether it's coincidence or not, since we stopped accepting payments from unverified PayPal accounts, we never had a charge-back or dispute at PayPal again.

    It's always a case-by-case decision that depends on the fraud score and other factors. If we decline an order from an unverified PayPal account, we still give the client the option to choose a different payment method or submit proof of identity if they don't want to verify their PayPal account. This method was reasonable for both sides so far.

    As for the email address that the clients provide us for their billing account - of course, we always recommend them to use one that isn't hosted on our network in case something goes wrong. There's no problem with that.
    I've never had a chargeback on paypal in my life.
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  14. #14
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    In our experience, if the PayPal account is unverified, there is a high probability that the order is fraudulent. Carders especially like to use unverified PayPal accounts with free e-mail accounts. We stopped accepting payments from unverified PayPal accounts as a result.

    Another thing to look for is if the PayPal account name does not match the name provided during sign up.

    I would recommend looking into something like MaxMind and FraudRecord to help screen out some of the fraudulent orders.
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  15. #15
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    Quote Originally Posted by CW Mike View Post
    I've never had a chargeback on paypal in my life.
    me neither! Also I have had no problems from clients with unverified accounts.

  16. #16
    Quote Originally Posted by CW Mike View Post
    I've never had a chargeback on paypal in my life.
    Quote Originally Posted by TheDemonChild View Post
    me neither! Also I have had no problems from clients with unverified accounts.
    Lucky you guys. how many years been in the business?
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  17. #17
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    Started in 2010, didnt begin going strong until early 2013 though, so lets base my comment off of this year alone lol, i'm sure i got time to run into quite a few.

  18. #18
    Quote Originally Posted by TheDemonChild View Post
    Started in 2010, didnt begin going strong until early 2013 though, so lets base my comment off of this year alone lol, i'm sure i got time to run into quite a few.
    It also depends on the what type of customers your attract. we get many frauds on our instant VPS's. not many on Dedi servers for example.
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  19. #19
    Quote Originally Posted by Hannan View Post
    What I think is, they usually hacked the accounts with phishing attacks! and use their legitimate PP accounts.
    and in my experience 90% of our new orders with women's names are fraud!
    Agree that 90% of orders we see with female names are fraud.
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  20. #20
    Quote Originally Posted by funkywizard View Post
    Agree that 90% of orders we see with female names are fraud.
    Yes, they are usually not into hosting!! and I guess easier to phishing them too.
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  21. #21
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    I don't think we should generalize. We have many female clients, some of them since a few years already, and none of them were fraud (as far as I know). Sometimes they're even more skilled and security-concerned than our male clients. But of course, there can be exceptions.
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  22. #22
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    beware of chargeback as this unverified users will claim that they never ordered your service using their account.
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  23. #23
    Quote Originally Posted by Hannan View Post
    Yes, they are usually not into hosting!! and I guess easier to phishing them too.
    We have plenty of fraud from male names as well as female. Just fewer legitimate female orders. Obviously this will vary by company based on target market. We target hosting companies more than end users. If you target end users I would expect more legitimate female orders.
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  24. #24
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    Quote Originally Posted by Hannan View Post
    Lucky you guys. how many years been in the business?
    I've been in the hosting industry since 2009ish, but worked as a sales rep / manager on a few of my mates businesses back in the day.

    My current business opened in 2011. I suppose we're not aiming at the budget industry, so that helps us a bit.
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  25. #25
    Quite surprisingly, none of our orders from unverified PayPal accounts have turned out to be fraud. What you really need to watch out for is unregistered PayPal payments to be honest.

    I don't think that whether or not a PayPal account is verified or not is an accurate way to predict if a customer is fraudulent and I wouldn't depend on it. We don't; instead we look at whether or not the client's IP matches the address on their client profile, whether they ordered using a proxy/VPN, whether they are listed on FraudRecord, etc.

  26. #26
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    No not necessarily most of the payments go through fine with the unverified accounts you just have to make sure the email looks like a serious one and not really dodgy. I've had verified PayPal accounts charge back.

    Basically they just won't have their bank account linked and they will have a limit of how much they can send and receive a year
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  27. #27
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    We get a lot of those and do not have any issues. Its not a big deal. If you want to have peace of mind you can open a ticket with the customer and ask them for a government issued id.

  28. #28
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    Quote Originally Posted by parky1 View Post
    If a customer decides to pay as a guest through Paypal the payment will be from an unverified account, this does not mean its fraudulent.
    This could be the reason for the unverified accounts. Also some just may have not verified their paypal account.

    I know when I first signed up for paypal I didn't verify my account for a few years and bought hosting and other things.

    We also get a lot of good orders from Paypal accounts that are unverified.

    I wouldn't be too worried about it.

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  29. #29
    I personally allowed them, but would I would make sure their IP matched their address, or email them and ask them to prove validity.

  30. #30
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    Quote Originally Posted by MH-Stefan View Post
    From past experience, about 9 out of 10 orders that were paid from unverified PayPal accounts were fraud. If it's also a free email address, there's a 99% chance of fraud. That's why we always cancel & refund such orders immediately, send a polite email to the client explaining why we have declined the order and ask him/her to choose a different payment method, or submit a new order after the PayPal account is verified.

    If you decide to accept payments from unverified accounts, at least make sure to monitor the account's activity and the email queue closely.
    This is not correct, most of the problems come from verified hacked/stolen PayPal accounts.
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  31. #31
    while registering to paypal require the all cc details; therefore if they are able to purchase they have entered the necesary information. Unverified can mean confirmation of these information by paypal.

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