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  1. #1
    Join Date
    Mar 2005
    Posts
    56

    Proof of delivery/digital goods.

    Hello WTH members.
    I am selling cd keys and game cards for online game. These are something like a pin code you can activate an game account with or pay the monthly subscription. Recenly i saw a website selling similar products and noticed a nice idea they got there to protect themselves from chargebacks which are not fraudulent but more like "unsatisfied with item" or "item was not like discribed" or "item not received".
    Frist thing they got in ToS a line which pretty much sums to: "Once a box has been opened a the cdkey delivered there can be no refund". I dont think this is something serious that would be taken much into consideration in the chargeback procedure. But combined with another thing they got on the web site could be pretty strong evidence. Once a buyer does make a purchase they do not email plain text codes anymore, instead, they do place in the private area of the user on there website JPEG files with scanned ares of the users manual or the scrached card which contain the codes. These can only be viewed or downloaded by clicking a button, View the Code.
    To pay or view the code u gotta be loged in there shopping chart.
    My main question is: can these logs of pressed button View the Code be considered as proof of delivery ? Only the person who pays for them can view them. As for item is not as described, well a number is a number, it cant be too small or to dark...
    And another thing i want to ask, are there any modules made already which could do same thing ? particulary for oscommerce.

  2. #2

  3. #3
    Mall23.com does something similar to that for you. You can sell digital goods for download and the store will generate a license key for you.

    During the install script for your software, the customer has to enter their license key (they receive it when they download the software). Then your software sends XML back to your store to validate that key. Gathers the date/time of activation and the IP address activated from.

    It isn't bullet-proof for chargebacks, but it is a good step and gives you some good records to send to the bank when something comes up. You have date/time and IP where your software was successfully installed.

  4. #4
    Join Date
    Sep 2005
    Location
    Canada
    Posts
    645

    digital chargebacks

    These methods can be used to fool some customers into thinking a chargeback is difficult, but thats it.

    The origin of the chargeback goes to a SIGNATURE. Thats why you deliver goods with a courier and they log the SIGNATURE. Its the signature that lets you fight the chargeback, not the delivery of physical goods. Fed Ex gives that signature to the sender for their files.

    None of the methods you describe are a signature so it wouldn't help you if a customer initiated a chargeback with their bank.

    If they do so you have 30 days to cough up a signature, or the customer wins the dispute automatically.

    The only way around this is if the customer uses Verified By Visa, which provides fulll chargeback protection for the merchant, even for electronic goods.

  5. #5
    Join Date
    Aug 2005
    Location
    Oxford, England, UK
    Posts
    828
    Quote Originally Posted by gngonline
    Hello WTH members.
    I am selling cd keys and game cards for online game. These are something like a pin code you can activate an game account with or pay the monthly subscription. Recenly i saw a website selling similar products and noticed a nice idea they got there to protect themselves from chargebacks which are not fraudulent but more like "unsatisfied with item" or "item was not like discribed" or "item not received".
    Frist thing they got in ToS a line which pretty much sums to: "Once a box has been opened a the cdkey delivered there can be no refund". I dont think this is something serious that would be taken much into consideration in the chargeback procedure. But combined with another thing they got on the web site could be pretty strong evidence. Once a buyer does make a purchase they do not email plain text codes anymore, instead, they do place in the private area of the user on there website JPEG files with scanned ares of the users manual or the scrached card which contain the codes. These can only be viewed or downloaded by clicking a button, View the Code.
    To pay or view the code u gotta be loged in there shopping chart.
    My main question is: can these logs of pressed button View the Code be considered as proof of delivery ? Only the person who pays for them can view them. As for item is not as described, well a number is a number, it cant be too small or to dark...
    And another thing i want to ask, are there any modules made already which could do same thing ? particulary for oscommerce.

    If they are prepared to go to court with it to fight any chargeback, yes. End of the day, if they win their legal fees would be paid by the party they are suing.

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