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Help: Payment choices for "high risk" product

by sammy_fox
13 replies
Hello,

I am currently dealing with a "high risk" product that I sell through Paypal. I'd rather not go into details but let's say its similar to the usual "Watch TV from your computer" that used to be all over the net, clickbank, ebay, etc.

For now my ad expenses are less that my income minus refunds so I want to continue till the market gets saturated as It did with free TV.

Problem is it "raises too many flags" on Paypal.

I do *NOT* mind refunds. The problem is that people start Disputes and/or chargebacks BEFORE even contacting me to ask for a refund. Human nature. And I am really afraid about my account. I do not want to be blocked for 6 months because they will "investigate" . (for more info: paypalsucks.com)

Paypal does not accept above a certain percent of chargeback and "un-undisclosed" amount of Dispute which is roughly 5% (?).

In brief:

I already have a Clickbank account with a small product that I dont care too much but I receive my $5 cheques every two weeks. Forget about affiliates too. I can use it right away and that's what I care.

ALL I WANT is to find a payment processor that will not just close my account and leave me hanging. Is Clickbank reliable for "high-risk" electronic products?
If, for example, I pass their 2% (?) chargeback maximum limit, will they just block my account and i forget about my money for the next 6 months like Paypal? Will i be able to "reason" with a human being over the phone or email or will I get canned answers that piss me off so much ?!?!?

Basically, i do not mind paying extra chargeback fess AND give 30% refunds (I exaggerate of course), BUT i want is to be able to get my money - even if it is once every two weeks.

I hate the fact that not only i have to pay to create a new account for a new product i will still have to practically have to wait 2 months to get my money from Clickbank. Despite the fact that i am alredy a "customer".

I am basically looking for a high-risk, reliable, payment processor.


I would REALLY appreciate your feedback.

Thanks in advance warriors for helping a newbie in despair.

Cheers!
-S
#choices #high risk #payment #product
  • Profile picture of the author Loren Woirhaye
    Go with E-bullion or something like that. Of course your
    conversions will sink like a stone because people are used to
    PayPal and don't have accounts with other systems nearly
    so often.

    If your competition takes PayPal why will your customers
    be motivated to jump through hoops to buy from you?

    If the software is worth a damn you should be able to
    position it as something of real value and get people to pay
    on your terms... even sending you money orders in the mail.
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  • Profile picture of the author sammy_fox
    Thanks for the comment but this is something I would not do for the reason you mentioned: unknown = lowest conversions.

    I need more suggestions from you guys that are experts on clickbank. What is the WORST i can expect from Clickbank with a high risk product?
    And is it better if i use my account instead of creating a new one ?

    TIA
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  • Profile picture of the author Monetize
    Try Moneybookers - payments are irreversible.
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    • Profile picture of the author seasoned
      Originally Posted by Monetize View Post

      Try Moneybookers - payments are irreversible.
      If payments are "irreversible", then chargebacks will INCREASE and that means you will STILL have problems. That is a FACT!!!!!! Even Moneybookers acknowledges that! THEIR response?

      NO charge back risk for merchants - just via Moneybookers
      Per a merchant's request we do offer a business model with full fraud and chargeback protection. In that case we do not pass on the charge backs to the merchants but absorb them ourselves. We reserve however the right to withdraw this policy for any particular merchant who we determine is not exercising due diligence or is operating in a way which results in a higher than the normal exposure. If you are interested to benefit from this business model please contact us.

      How we make this possible:
      Moneybookers offers high payment security, and reduces risk with measures such as credit scoring and payment limits.
      Registration information is verified using proprietary and third-party databases. Conflicting information results in an unsuccessful registration. We also monitor account activity for signs of unusual activity that might point to fraud.
      New Moneybookers users are subject to lower transaction limits until their account has been successfully authenticated. Once a customer is successfully authenticated, they are given full payment privileges up to the standard transaction limits.
      We work with law-enforcement agencies to protect against fraudulent activity through the Moneybookers payment system.
      BTW DON'T think that is free! They charge 6.9-7.9% EXTRA for that "business model"!

      Steve
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      • Profile picture of the author Monetize
        Originally Posted by seasoned View Post

        If payments are "irreversible", then chargebacks will INCREASE and that means you will STILL have problems. That is a FACT!!!!!! Even Moneybookers acknowledges that! THEIR response?

        BTW DON'T think that is free! They charge 6.9-7.9% EXTRA for that "business model"!

        Steve
        Thanks but I read all of that and so should anyone who signs up
        to use them. The OP's problem is chargebacks and according to
        MoneyBookers, they absorb those themselves. Beats the heck
        out of PayPal.
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        • Profile picture of the author MarketingFast
          I would recommend 2Checkout. I have been using them for about 6 years. Great service.
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          • Profile picture of the author Sami
            Originally Posted by MarketingFast View Post

            I would recommend 2Checkout. I have been using them for about 6 years. Great service.
            Don't you find them a little expensive compared to Paypal or is it my imagination?

            Sami
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            • Profile picture of the author MarketingFast
              Originally Posted by Sami View Post

              Don't you find them a little expensive compared to Paypal or is it my imagination?

              Sami

              Hi Sami,

              Good question. Yes, they are a little bit more expensive than Paypal, and not quite as convenient to use, but I gotta tell you, after having my Paypal Business account locked over something I had absolutely nothing to do with, (someone bought something from me with a hi-jacked Paypal acct) and them keeping over $2400 of my money for 180 days, I really think 2Checkout is the easiest alternative without going to a full blown Merchant Account. Go to PaypalSucks.com to read more about how often this happens to people.
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              • Profile picture of the author Sami
                Originally Posted by MarketingFast View Post

                Hi Sami,

                Good question. Yes, they are a little bit more expensive than Paypal, and not quite as convenient to use, but I gotta tell you, after having my Paypal Business account locked over something I had absolutely nothing to do with, (someone bought something from me with a hi-jacked Paypal acct) and them keeping over $2400 of my money for 180 days, I really think 2Checkout is the easiest alternative without going to a full blown Merchant Account. Go to PaypalSucks.com to read more about how often this happens to people.
                Oh I agree about Paypal's rough treatment of inncoent marketers. And I'm well aware of their horrific attitude of "shoot first ask questions 6 months later".

                I have friends who talked to them AND recorded the conversation ... notifying Paypal of a "medium sized launch" and on Paypal's advice got their receiving limit increased and were then given the go ahead ...

                ... you can guess what's coming right? ... the account got locked in the first hour! ... they unlocked it 6 months later. My friend paid all his affiliates (lots of them) thousands from his own pocket!

                And there are many more stories like this. SO anyone reading this should take note, if you're expecting a rapid rise in income.

                "Fore warned is fore armed" ... usually.
                Sami
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  • Profile picture of the author Sami
    Hi Sammy

    I have 3 options for you:

    1- Talk to CB. They are reasonable. Ask your question about your "expected" and high refund rate and that you yourself don't mind. ALso mention you are happy to pay the fees. But don't mention the subject matter.

    CB will tell you where they stand on the high refund requests and chargebacks.

    Also note, very recently they switched to weekly bank transfer so you no longer have to wait for checks every 2 weeks and of course this costs a lot less.

    2- AlertPay

    ... is are a Candian co. Thy do everything Paypal does and more. And appranetly they do look at more risky stuff such as multilevel marketing/payments etc.

    I don't know their attitude to chargebacks but again ask them. I think they are OK with the kind of product you're into.

    3- 2Checkout

    ... process credit cards. BUT they recently started accepting Paypal...

    Here's the beauty: the customer can choose to pay by Paypal. Paypal pays 2Checkout immeditely and have nothing to do with you. They deal directly with 2CO. 2CO send you bank transfer evey Thursday and pays you everything you have earned into whatever account you specify. But you need a US bank account for speed and security.

    Again talk to them about the chargebacks and explain to all of them that your product is by nature a high refund type and your typical customer is too lzay to ask you for a refund. Until you establish their attitude to chargebacks you can avoid discussing the subject matter.

    Have fun
    Sami
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  • Profile picture of the author sammy_fox
    More than I could have asked for !

    Thank you fellow warriors !!!

    S
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  • Profile picture of the author sammy_fox
    Nobody mentioned of the psychology of the people though.
    I mean, what happens to the conversions once people see a payment option they are not used to? Let's face it Paypal has 100 mil. subscribers.

    Has anyone of you guys "experimented" with this? i.e. same product different payment processors. What happens to the conversions ?

    Cheers!
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  • Profile picture of the author Sami
    Sammy

    That's why 2CO is such a good bet coz you still get to display the Paypal logo and payment option.

    But yes psychology and traust are very important. But you can reduce the impact of offering say AlertPay instead of Paypal by using other 'confidence and trust' building measures... any decent copywriting book or report will tell you about those.

    Sami
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