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  1. #1
    Join Date
    May 2013
    Posts
    177

    PayPal chargebacks

    I have a little problem.

    I'm using PayPal express checkout.

    We as digital goods sellers usually have the PayPal policy on our side and even more so if we keep good logs. Until the user pays with a credit card or bank account. It's incredibly easy to win any case by going to the bank and simply saying 'this isn't my charge' and there's nothing that I know how to reply. I could write a book showing how that user has IP logs for the entire time matching from the same place the card was issued, how I verified their email belonging to them, and for larger orders had some kind of proof of identity/residency. But the user can still win 90%+ of the time.

    So my question: Is there either a way so that I can either force all payments made through PayPal MUST be from PayPal BALANCE, ONLY. Or, that I can know that a payment is not from balance, then refund the customer and ask him/her to make the payment again using balance. OR, add 3-D Secure to express checkout so that I'm not liable for those. OR, do you know any way to win?

    Thanks.

  2. #2
    For credit card payment you may choose 2checkout they have 300+ Fraud rules built over time PCI Level 1 compliance so that reduce your credit card fraud possibility. If you are whmcs user you can try maxmind.com fraud protection rules. They offer 1 thousand free query for whmcs user.
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  3. #3
    Join Date
    May 2013
    Posts
    177
    Quote Originally Posted by Host Dingle View Post
    For credit card payment you may choose 2checkout they have 300+ Fraud rules built over time PCI Level 1 compliance so that reduce your credit card fraud possibility. If you are whmcs user you can try maxmind.com fraud protection rules. They offer 1 thousand free query for whmcs user.
    I have my own merchant ID, I require people who don't manage to pass 3D Secure (which are very limited, either gift cards or corporate cards) to provide a scan of their card (and typically companies don't mind and I haven't really seen many people use visa gift cards). So in this case it's not my problem if someone manages to get through it, that's the issuing bank's problem.

    2Checkout's closed my accounts before, for no fault of my own, and refunded everyone who paid that I haven't gotten withdrawed yet. I am not going to touch them again with a 100 meter pole.

    My problem is that some of my legitimate users deal online, so they pay with everything with PayPal balance, so I need a PayPal account not for any reason but just for those users.

    Till now I still don't understand why PayPal doesn't provide some kind of easy API option or some easy switch in the account panel to do this. Doesn't this mean extra income for them? Balance transactions are free for them, they don't have to pay the interchange rate etc. but we're still charged 2.9% so I don't understand why they're making it hard for me to do something that is only profitable for them and safer for me as well???
    Last edited by derp; 12-01-2013 at 12:52 AM.

  4. #4
    Join Date
    Aug 2011
    Posts
    79
    Howdy,


    What if you require the user to scan a bank statement showing a unique 4 digits code (Same when you verify the PayPal account?)

    I know that you can fight against a dispute made and maybe you can send this as kind of proof that the customer was verified and he owns the card?


    --

  5. #5
    Join Date
    Jul 2011
    Location
    SriLanka
    Posts
    2,073
    Quote Originally Posted by Host Dingle View Post
    For credit card payment you may choose 2checkout they have 300+ Fraud rules built over time PCI Level 1 compliance so that reduce your credit card fraud possibility. If you are whmcs user you can try maxmind.com fraud protection rules. They offer 1 thousand free query for whmcs user.
    Its not true , 2co even not allow you to challenge chargebacks. Everyone used it says its worst. lost money etc.
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  6. #6
    Use Maxmind with your Payment Gateway always.

  7. #7
    Who dare to recommend 2co ? You really must know nothing !

    So easy chargebacks with just a phonecall seem to be possible only in US, I wonder why they allow the monkeys to cheat us so easily... ?

  8. #8
    Join Date
    May 2013
    Posts
    177
    Quote Originally Posted by AlbertHost View Post
    Howdy,


    What if you require the user to scan a bank statement showing a unique 4 digits code (Same when you verify the PayPal account?)

    I know that you can fight against a dispute made and maybe you can send this as kind of proof that the customer was verified and he owns the card?


    --
    But the problem is I don't know whether the user paid via balance or bank account/credit card. If PayPal let me know this then I could, but they don't.

    Quote Originally Posted by LankapartnerHost View Post
    Its not true , 2co even not allow you to challenge chargebacks. Everyone used it says its worst. lost money etc.
    2CO refunded at least an entire month of my earnings back to users. not making the same mistake twice.

    Quote Originally Posted by fastneasy View Post
    Use Maxmind with your Payment Gateway always.
    Maxmind prevents against some fraudulent transactions. It does not prevent against the legitimate card holder lying and saying someone stole his credit card and PayPal do not accept that as proof.

    Quote Originally Posted by buythiscomputer View Post
    Who dare to recommend 2co ? You really must know nothing !

    So easy chargebacks with just a phonecall seem to be possible only in US, I wonder why they allow the monkeys to cheat us so easily... ?
    It'd be nice if I could just call, but then they tell me 'we're powerless, the bank has the final say here' and banks usually side with their customers.

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