paypal: chargebacks, fraudulent payments, rolling reserve and reversals.......
Has anyone got experience for using paypal as a payment processor? Did you experince chargebacks, fraudulent payments, got rolling reserve and reversals???? Kindly explain.... Does it affect your paypal account?
Any comments, views and suggestions we'll be much appreciated.
I experienced everything as stated in this thread. It's really frustrating that in most cases, buyers always win against us. I run an online dating site, and yes, paypal help us in identifying which are fraudulent payments and place a hold on the fund, and they reversed the payment back to the real card holder. It's okay with me and i understand, since it's a fraud.
But in terms of recurring payments, (legitimate customers) buyers also win against us and indeed created a chargeback... Though we provided information (evidence) as required by paypal and send to them the terms and conditions of our site upon payment which clearly stipulates that it's "non-refundable". The buyer also agreed to the terms, but still. we loss the fight.
Hi, I seem to be following Jacob on similar topics today!! Haha.
In relation to the question about Paypal -
I have a paypal a/c which I now rarely use. I got some chargebacks and unfortunately yes sometimes you lose the battle and have to pay out - this is why i am not a fan of Paypal - they can dip into your bank if they need to retrieve money so you are at their peril per se. In relation to fraud - Paypal payments dont go through '3D Secure' and that will impact on attempted fraud levels. (Nochex for example use 3D Secure). I think 3D secure is essential for merchants nowadays - if you are unsure what it is it's worth familiarising yourself with it on Google. Paypal have only recently introduced rolling reserves and they are set on a a case by case basis, so it will depend on your business model and how long you have been established - however if your business is new then it is very likely they will ask for a reserve (I would say however a reserve is quite common across all processors - for merchant accounts at least). Paypal should have a little more trust in their sellers - Nochex offer chargeback protection and I have to say its been a good service so far - and rates are marginally cheaper too. Paypal has its major benefits like its size and reach but it depends what it important to you as a merchant.