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Fraud/Chargeback Protection - Digital Products

by SoloSmith
4 replies
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Hi guys,

Nearing the launch of a new site so I begun looking into potential problems that we can avoid before release.

I've found quite an alarming number of PayPal horror stories and once again need the help of you great Warriors

I'm looking at selling digital products that will be deliver by email. From what I understand PayPal do not offer any protection for this whatsoever. I know thousands of sites sell images, videos and other digital media and still use PayPal, what am I missing?

If anyone has experience in online sales of digital items and is aware of any problems I may have yet to research, I would greatly appreciate a heads up
#digital #fraud or chargeback #products #protection
  • Profile picture of the author sbucciarel
    Banned
    Nothing can really stop determined thieves from filing a chargeback or dispute if they want to. I do fight them though and often win. It's really the buyer that has "no protection" for digital products, although I've seen Paypal protect the buyer anyway and give them a refund.

    Why are you delivering via email? That's a very insecure way to deliver digital products. Not only do you have Paypal fraud, but you also have piracy fraud. It's very easy to share a product via email.

    I use DLGuard for quite a few products. After payment, it gives the customer an expiring url. It also shows whether or not they downloaded it, which I've used in Paypal disputes to prove that the customer received the product.

    I've found that the products that I deliver through a membership site get stolen a whole lot less.
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    • Profile picture of the author SoloSmith
      Thanks for taking the time to reply guys

      We'll be selling images (JPG, PNG etc) Audio files in MP3 format and some basic text documents. I'd be surprised if we did suffer a lot of chargebacks/fraud initially but I want to investigate it so that we're prepared should it be the case.

      The individual items will typically be very cheap, $5-15 although "package" deals will be more. Is it worth investing in the more expensive protection or services like DLGuard?
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      • Profile picture of the author sbucciarel
        Banned
        Originally Posted by SoloSmith View Post

        Thanks for taking the time to reply guys

        We'll be selling images (JPG, PNG etc) Audio files in MP3 format and some basic text documents. I'd be surprised if we did suffer a lot of chargebacks/fraud initially but I want to investigate it so that we're prepared should it be the case.

        The individual items will typically be very cheap, $5-15 although "package" deals will be more. Is it worth investing in the more expensive protection or services like DLGuard?
        It's been worth it for me. There's no limit on how many products you can use it with. If you have a serial refunder, you can also ban by email and ip and that's a feature that I've used as well.
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  • Profile picture of the author yuliak
    Just the thing I was looking for. Thanks Suzanne.
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