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  1. #1
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    How to avoid PaYpal Dispute ?

    hello I have an hosting website where i sale hosting , There i gave 30 days money back gurrenty, But people make charge back after 30 days later, Then paypal reversed Payment from my account.

    I told them and give all term & condition ,But paypal support team doing refund, where many payment was too 35 to 42 days.

    So now how to run business ? Anyone can give me good advice ?

  2. #2
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    You can't completely avoid chargebacks and disputes.

    However, using MaxMind and FraudRecord is absolutely recommended. Most fraudulent customers tending to open disputes and chargebacks are blacklisted in their databases. So, by filtering your orders with MaxMind and FraudRecord you significantly reduce orders from such customers.
    Last edited by NetworkPanda; 01-29-2014 at 01:11 PM.
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  3. #3
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    Quote Originally Posted by NetworkPanda View Post
    However, using MaxMind and FraudRecord is absolutely recommended. Most fraudulent customers tending to open disputes and chargebacks are blacklisted in their databases. So, by filtering your orders with MaxMind and FraudRecord you significantly reduce orders from such customers.
    A host friend of mine has just been hit with 6 chargebacks on 6 invoices for 9 domains purchased a few weeks ago, neither MaxMind or FraudRecord flagged the orders as suspicious.
    He got the usual 'unauthorized' payment claim from what seemed the legitimate card holder (probably friendly fraud) and nearly $200 in CB fees. You never know when the income received in a sale is yours in the hosting industry.

  4. #4
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    Quote Originally Posted by LampNetworks View Post
    A host friend of mine has just been hit with 6 chargebacks on 6 invoices for 9 domains purchased a few weeks ago, neither MaxMind or FraudRecord flagged the orders as suspicious.
    He got the usual 'unauthorized' payment claim from what seemed the legitimate card holder (probably friendly fraud) and nearly $200 in CB fees. You never know when the income received in a sale is yours in the hosting industry.
    This why I said

    Most fraudulent customers
    MaxMind and FraudRecord block *most* fraudulent orders (not *all* of them).

    There isn't any way to predict who is going to open a chargeback request, but if you can prevent even the 70-80% of fraudulent orders, it is good.
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  5. #5
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    Take a look back at those customers -- were there unanswered support tickets? Anything suspicious about the signups - address, IP, time of day, etc? Suspicious site or domain name?

    Reviewing the customer details might give some insight as to why disputes are occurring. At least if you can find a trend, you can see what you can do to prevent further problems.
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  6. #6
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    Quote Originally Posted by LampNetworks View Post
    A host friend of mine has just been hit with 6 chargebacks on 6 invoices for 9 domains purchased a few weeks ago, neither MaxMind or FraudRecord flagged the orders as suspicious.
    He got the usual 'unauthorized' payment claim from what seemed the legitimate card holder (probably friendly fraud) and nearly $200 in CB fees. You never know when the income received in a sale is yours in the hosting industry.
    this is a reason, don't need to trust MaxMind or FraudRecord 100% and request ID from customers, some IDs do have signature, this way you will win every chargeback as at the end of the day the Banks and Credit Card companies want to have customer ID with signature to verify identity.
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  7. #7
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    Yes, to require some ID and maybe a utility bill may prevent chargeback's in the future.

  8. #8
    Yes, I ask them ID, they like it or not...

  9. #9
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    paypal

    Quote Originally Posted by NetworkPanda View Post
    This why I said



    MaxMind and FraudRecord block *most* fraudulent orders (not *all* of them).

    There isn't any way to predict who is going to open a chargeback request, but if you can prevent even the 70-80% of fraudulent orders, it is good.


    yea you are right now what can i do?

  10. #10
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    reseller hosting

    Quote Originally Posted by gotlivechat View Post
    Take a look back at those customers -- were there unanswered support tickets? Anything suspicious about the signups - address, IP, time of day, etc? Suspicious site or domain name?

    Reviewing the customer details might give some insight as to why disputes are occurring. At least if you can find a trend, you can see what you can do to prevent further problems.

    bro they make payment via cc, then paypal must refund this payment.so then ?

  11. #11
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    Quote Originally Posted by LampNetworks View Post
    A host friend of mine has just been hit with 6 chargebacks on 6 invoices for 9 domains purchased a few weeks ago, neither MaxMind or FraudRecord flagged the orders as suspicious.
    He got the usual 'unauthorized' payment claim from what seemed the legitimate card holder (probably friendly fraud) and nearly $200 in CB fees. You never know when the income received in a sale is yours in the hosting industry.
    The blind trust in MaxMind with webhosts is why fraud is so rampant.

    It is very, very easy to fool MaxMind and, thus, nearly every webhost.

    Quote Originally Posted by alex-developer View Post
    this is a reason, don't need to trust MaxMind or FraudRecord 100% and request ID from customers, some IDs do have signature, this way you will win every chargeback as at the end of the day the Banks and Credit Card companies want to have customer ID with signature to verify identity.
    That won't help you if it's a stolen ID and credit card.

    Requesting copies of ID also has a direct negative impact on revenue, which may or may not be greater than the savings from reduced fraud.

  12. #12
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    Quote Originally Posted by Mr X View Post
    It is very, very easy to fool MaxMind
    That "very, very easy" is a bit too much, isn't it?

  13. #13
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    If you are using WHMCS then you can make clients verify their identity by making them upload their photo ID. There's a WHMCS addon for it: http://www.whmcs.com/appstore/1578/C...ification.html

    It was advertised at WHT too which is located at http://www.webhostingtalk.com/showthread.php?t=1292416

    Then if the client makes an unauthorized transaction dispute then you can provide PayPal with their photo ID. If anything else, you can just give PayPal a call saying the buyer bought an intangible item and they'll close the case in your favor.

  14. #14
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    Quote Originally Posted by gingir View Post
    That "very, very easy" is a bit too much, isn't it?
    What MaxMind does constitutes the bare minimum of what one should expect from an automatic anti-fraud tool these days.

    Compared to what's out there in the market currently - yes, MaxMind is very, very easy to fool.

    You only need to get two or three parameters correct to pass through nearly all MaxMind configurations.

  15. #15

    Avoiding Chargebacks

    A few tips to identify suspicious transactions.

    1. Is it a returning or new customer?
    2. If it is a new customer is their transaction amount unusually high?
    3. Force customers to provide a telephone number and call them on a case to case basis when you think it is suspicious.
    4. Is the customer name or email written funny?
    5. Does the customer comes from a high risk country e.g. Nigeria. You can a more extensive list from the internet
    6. Do you have several transactions from the same IP Address? while but the email being used is changing.

    Regards

    Tommy

  16. #16
    All the above suggestions can and do help sometimes, but in the long run there is no way to completely stop the determined fraudulent buyer. There's a bunch of people on the net that does that for fun and play. I guess it's what they do in their spare time. Then there is the kind of person that submits 2-3 nonsense support tickets each day for a month. After 30 days they will do a dispute or a charge back.

    The dispute or charge-back is not a reflection of the great service that you may provide, it's just that some people get their kicks, playing and doing mindless games. It's how they get their self esteem, sometimes.

    Then there's the straight up scammer that pays for your service and uses the service to do a Email or ****** Blast of some sorts, for 24 hours and then initiates the charge back or dispute claiming they never received the service. It's all a game for some people, at another persons expense.

    There's also a lot of nut jobs out there as well !

  17. #17
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    We've found blocking free e-mail domains more effective than using Maxmind. Most people have a secondary e-mail issued by their employer, university or ISP. The only free e-mail domain we allow is Gmail. For some reason there's a lot less frauds on Gmail than elsewhere.

    Maxmind helps, but it also creates false positives. Keep in mind that losing one legitimate sale because Maxmind accidentally blocked it may be more costly than refunding 10 fraudulent ones. The actual cost incurred by a fraudulent order is usually quite low. It's just a hassle and disappointment.

    Last but not least, try to make your service unattractive for frauds. E.g. ban certain types of content, limit bandwidth and e-mail sending for the first 30-days. Most legitimate customers will not be in a hurry to have this all "unlocked", and if they are you can call them or do some other extra checks.

  18. #18
    This kind of people i publish their name and all details on the Internet and I an happy when they find their personal page !

  19. #19
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    Quote Originally Posted by buythiscomputer View Post
    This kind of people i publish their name and all details on the Internet and I an happy when they find their personal page !
    That's tempting, but how can you be sure you know their real name? Many frauds will use stolen credit cards/paypal accounts.

  20. #20
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    You should provide exact proof for avoid dispute and you need to look up your services and quality

  21. #21
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    Probably the chargebacks are all from the same person, do you notice any patterns to the orders.

    Scammers seem to be very greedy once they get one order through they will submit a few more within the same hour.

    Block all orders from proxies/VPNs and high risk countries, I noticed that we have more fraudulent orders coming from Croatia and Malaysia than legitimate orders so I blocked these countries.

  22. #22
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    I would say always check them on FraudRecord and just manually approve high paid orders as you're always going to get the charge backs here and there
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