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This Scam Is Really Getting Annoying

by Shannon Herod
12 replies
Hey everyone,

I do not know if anyone else is experiencing this, but I have a feeling people have found a new way to scam PayPal and still your products.

This month, I have had four people buy my products and then instantly open a dispute in PayPal claiming unauthorized use.

Since the product is a digitally delivered product I do not have a address so it is impossible to win the dispute. So, the person gets the product for free because I cannot dispute the dispute.

The funny thing about it is I offer a 100% refund guarantee. So, if the people would just contact me I would refund their money.

Instead, they instantly open a PayPal dispute.

This is very annoying and actually worries me. Does this make my PayPal account look bad?

I have had four unauthorized use disputes this month.


Anyone else experiencing this?

Regards,

Shannon Herod
#annoying #paypal scam #scam
  • Profile picture of the author Jared Alberghini
    Yes this happens to me all the time... instant dispute, as soon as I have sent out my product already to these scammers.

    One thing I did was set my PP preferences, to not automatically accept payments from accounts that don't have a confirmed address, or verified acct... then I wait a little while, and if it's not disputed after a few hours, or even wait a day sometimes, I then accept the payment and send my digital download to them.

    After a while you can really tell which ones will be disputed...

    It's annoying as hell, but I don't think it will make your PP acct look bad or anything...

    - Jared
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  • Profile picture of the author Richard A.Cox
    You would be best advised operating a 'no refund' policy from the outset.

    If PayPal quibble, showing them your guarantee would settle matters in your favor.

    Why IM-ers feel they have to offer a XXX day refund policy as a matter of course is beyond me.

    If you have a sales page which explains exactly what the customer will get, and you deliver on that policy, there is no need for any refund.
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    • Profile picture of the author Ryan Dodson
      Originally Posted by Richard A.Cox View Post

      You would be best advised operating a 'no refund' policy from the outset.

      If PayPal quibble, showing them your guarantee would settle matters in your favor.

      Why IM-ers feel they have to offer a XXX day refund policy as a matter of course is beyond me.

      If you have a sales page which explains exactly what the customer will get, and you deliver on that policy, there is no need for any refund.
      I absolutely agree with you.

      My theory is that IMers see other IMers doing it, so they do it themselves without any reason beyond sales copy purposes.
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    • Profile picture of the author Michael Silvester
      Originally Posted by Richard A.Cox View Post

      You would be best advised operating a 'no refund' policy from the outset.

      If PayPal quibble, showing them your guarantee would settle matters in your favor.

      Why IM-ers feel they have to offer a XXX day refund policy as a matter of course is beyond me.

      If you have a sales page which explains exactly what the customer will get, and you deliver on that policy, there is no need for any refund.

      If thats your attitude...Why do you have a 60 day money back gurantee on your site with a 90 day guarantee seal?

      Michael Silvester
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  • Profile picture of the author Christopher R Everson
    It can be even worse in brick and mortar businesses.

    I own a sales floor, and know many other people that do tele sales as well, and the same is true of chargebacks.

    Equally frightening, is that if enough of them happen, and you don't have established relationships with your bank or paypal reps, you are in grave danger of losing it.

    When a floor sells $20,000 worth of coaching to someone, and then 2 days later that person issues a chargeback saying someone else used their card on the phone (which is just them trying to get out of paying), you better believe your merchant manager will be on the phone asking what the hell happened.
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    • Profile picture of the author Shannon Herod
      When a floor sells $20,000 worth of coaching to someone, and then 2 days later that person issues a chargeback saying someone else used their card on the phone (which is just them trying to get out of paying), you better believe your merchant manager will be on the phone asking what the hell happened.
      My transactions are not quite that big. But, when you have four disputes within a 30 day period that scares me. I'm just praying that this will not reflect poorly on my PayPal account.

      I have had that account for over three years and this issue is just now starting to appear. So, I'm guessing there is some type of scam book out there telling people to do this.


      regards,

      Shannon Herod
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      • Profile picture of the author Eric Lorence
        There was someone here on the WF not long ago suggesting that scam, think they're gone now tho.

        Good riddance! :rolleyes:
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  • Profile picture of the author Chris Lockwood
    Are these disputes or claims? Disputes go away automatically if they are not escalated. Paypal doesn't take action on them.
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  • Profile picture of the author Jared Alberghini
    I just saw a topic somewhat related to this...

    I would imagine 'Digital Signatures' would help with the 'refund happy people' (might not help with the scammers tho)

    http://www.warriorforum.com/main-int...eliveries.html

    - Jared
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  • Profile picture of the author matthewd
    Is it happening from people here on the Warrior Forum or elsewhere?
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    • Profile picture of the author T.I.M.
      Unauthorized Use is basically saying their account got jacked & bought that item. That reflects nothing on you but the person pulling this (some may be legit.) can't get away with it too often before they lose their account.

      If this is a problem w/ you it's probably happening to others & Paypal will make changes regarding this.
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  • Profile picture of the author Bev Clement
    Shannon I have only had 1 person do that. I won that dispute, saying they had received the service provided. It was an ebook and the delivery was instant (e-junkie) and I had proof of delivery
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