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Is PayPal protect the Seller enough?

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  #1  
Old 01-12-2004, 09:21 AM
busyman busyman is offline
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Is PayPal protect the Seller enough?


Hi,

I have a question about PayPal payment.

Can the buyer "charge back" the payment after the transaction is completed?

Thanks for your help.

BusyMan



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  #2  
Old 01-12-2004, 09:29 AM
eddy2099 eddy2099 is offline
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Typically, there is not much protection for the seller if the seller does not ship a physical product with proof of delivery. Yes, the buyer can charge back after the transaction is completed and at which time, you just terminate their account.

  #3  
Old 01-12-2004, 09:49 AM
UH-Matt UH-Matt is offline
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If your goods are a service then you have no protection. If you are physically posting something and you can prove good were sent then you can have protection on your sales.

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  #4  
Old 01-12-2004, 09:56 AM
busyman busyman is offline
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Hi,

Actually, I am going to sell my hosting business. I am afraid that the buyer will "charge back" the money after the transaction is completed. Then I will lose my hosting business.

Which is the best method for transaction that can protect the seller?

Thanks for your kind assistance.

BusyMan

  #5  
Old 01-12-2004, 10:17 AM
Deb Deb is offline
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Quote:
Which is the best method for transaction that can protect the seller?
The best method is to have a copy of the client's valid picture ID and to swipe their card using a brick & mortar terminal, along with gaining their original signature on the receipt. Having their ID and their signature while performing the transaction in person gives you more power to dispute a chargeback.

If all of that seems like 'too much hassle' for both you and the client, the next best thing is to screen each of your new clients carefully to avoid accepting payment from anyone that may not be on the 'up & up'. This will lower the number of chargebacks you receive by lowering the number of fraudulent accounts you set up.

Another important thing to do is to try and make it VERY CLEAR to the client what the charge will look like on their credit card statements. Using a third party to process the cards or a name that the client may not remember can cause "innocent chargebacks" by people who wanted to use your services and expected to pay for them, but didn't recognize the charge on the statement as one being for those services.

Taking the credit card via the Internet leaves the seller as the underdog in the world of chargebacks. Note this is not a "PayPal" issue but rather an issue for merchants across the board that accept credit card payments for services over the Internet.

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  #6  
Old 01-12-2004, 10:25 AM
UH-Matt UH-Matt is offline
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Also (depending on the value) you should really sell it properly (contracts etc..). Dont just hand over your stuff and expect a paypal payment. Get the proper channels opened and involved.

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  #7  
Old 01-12-2004, 10:43 AM
eddy2099 eddy2099 is offline
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If you are selling your business, ensure that there is a contract which lays down all the terms and conditions of the sale. If possible, do it through a lawyer so that they have all the necessary paperwork done.

If you intend to do it without being face to face, at least use an escrow service.

  #8  
Old 01-12-2004, 04:33 PM
Mrdredd Mrdredd is offline
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escrow

  #9  
Old 01-13-2004, 10:17 AM
busyman busyman is offline
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Hi,

1. The amount is very small (within USD1000.00) therefore I would like to keep the payment simple.

2. What is escrow service?

Thanks

BusyMan

  #10  
Old 01-13-2004, 10:24 AM
Deb Deb is offline
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Quote:
What is escrow service?
"An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. "

For example: The buyer would give the money to the Escrow Service for the goods and the Escrow service gives the money to the seller once the goods are delivered.

The third party helps to ensure that both of the interested parties receive the product/service/payment involved in the transaction. This helps to prevent a situation where the buyer sends the money and then the seller takes off with the cash and never delivers the goods....

Escrow services are most commonly used for larger amounts but even a pseudo escrow services, that is trusted by both parties, can be used for the smaller ones.

My kids, for example, use Escrow all of the time lol. I have three kids... when one is trading a candy bar for a glass of chocolate milk (thanks to a mistake made by youngest long ago which involved something like quickly guzzling the milk and then not giving up the candy bar), they now give the milk and the candy bar to the third uninvolved child who then delivers the goods to the receiving party. One child does not receive the candy bar until the other child has given up the milk and neither can cheat the other since the third child is on the receiving end until both items are received..the third child then can deliver.

Lucky for them, the third child is honest...otherwise they'd both be out of luck with the candy and milk

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