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Old 10-13-2009, 04:35 AM   #1
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Default Paypal disputes/refunds an issue for you?

Hi

Just wondering how much of a problem it was for people who are selling non-tangible stuff through paypal? With the 45 days to claim cash back, are you finding lots of people just download and then open a dispute?

Any tips on how I can minimise this?

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Old 10-13-2009, 07:30 AM   #2
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Default Re: Paypal disputes/refunds an issue for you?

It never happened to me like that. At one time I had a problem with a download page and I received a lot of refund requests. Fortunately I was able to resolve the problem, and clients would be satisfied. My problem was that after the problem was solved, people wouldn't close the dispute and now I have a lot of open disputes...

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Old 10-13-2009, 07:42 AM   #3
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Default Re: Paypal disputes/refunds an issue for you?

Once in a while someone opens a dispute but it's rare. The latest guy to open a dispute when asked why said "It's the fastest way to get a sellers attention".

I find this annoying because my customer service is so good. However when I hear horror stories of unresponsive sellers I start to understand this attitude.

I fight each dispute with an email saying we are investigating their account and IP for download fraud. That usually gets the buyers attention lol.

Disputes are fraud if they are not accurate (non receipt for instance doesn't cut it when you have download logs and proof).

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Old 10-13-2009, 07:46 AM   #4
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Default Re: Paypal disputes/refunds an issue for you?

I haven't had any problems except for a few scammers who just wanted to get my products for free or hacked my Paypal code. I think if the product is good enough you don't tend to get problems and if you provide after sales support everything should work smoothly. I think you are always going to have a few people who "try it on" but generally I don't think you have anything to worry about.

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Old 10-13-2009, 07:46 AM   #5
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Default Re: Paypal disputes/refunds an issue for you?

To win the dispute, you really need proof that shipment has been made. But since it's non-tangible... there's no receipt confirmation, etc. It's tough to proof it to Paypal. If you must, use moneybookers instead. Less such cases....
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Old 10-13-2009, 07:49 AM   #6
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Default Re: Paypal disputes/refunds an issue for you?

You can also add another level of protection by utilizing PayPal's "Seller Protection"; which can be enabled for digital goods IF you refuse to accept money from PayPal users that do not verify their physical address(es).

You can do this in your account profile settings.

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Old 10-13-2009, 08:32 AM   #7
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Default Re: Paypal disputes/refunds an issue for you?

interesting thanks guys. I have had a few recently, and am mulling over perhaps creating something to deal with the issue, hell if I do I might even make it a WSO!

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