PayPal Issues - Warrior+, JVZoo & DigiResults

by 41 comments
I know we all have opinions on PayPal accounts getting limited, who's fault it is, why it happens and how we can help protect ourselves...

I have just been going through this thread.

http://www.warriorforum.com/main-int...ount-reps.html

And this thread..

http://www.warriorforum.com/main-int...ior-forum.html

One thing that sticks out is the way the different WSO networks split payments. With JVZoo & DigiResults seeming to be the safest option with splitting commissions at the checkout, rather than alternate payments.

My PayPal account was permanently limited last year, probably down to my own lack of planning.

I am looking to launch another WSO and wondered if anybody had any experience/tips with the setup least likely to cause any issues.

Obviously account age, refund rates, hypey sales copy etc all play a part...But does anybody have any direct experience that JVZoo & DigiResults are safer for an account than Warrior+?
#main internet marketing discussion forum #digiresults #issues #jvzoo #paypal #warrior
  • Profile picture of the author CDarklock
    Originally Posted by linkwhizz View Post

    But does anybody have any direct experience that JVZoo & DigiResults are safer for an account than Warrior+?
    I know for a fact that some Warriors have had their PayPal accounts frozen over activity through WSO Pro.

    I am not aware of any Warrior who has had a PayPal account frozen over activity through JVZoo or DigiResults.

    The evidence certainly suggests that they are safer, but is also not conclusive.
  • Profile picture of the author BIG Mike
  • Profile picture of the author loi77
    PayPal is always going to be a risk. We just have to learn to manage that risk the best we can.

    Also, there is no real alternative to PayPal. So have to use it whether we like it or not.
  • Profile picture of the author Andy Fletcher
    It's worth noting that you're assuming merchant accounts will vet your business model once and leave you alone after approval but that's simply not the case.

    Merchant account providers pay just as much attention to the clients they are handling transactions for as PayPal do because it's a legal requirement for them in most countries.

    It's also heavily influenced by the insurance under writers who manage the risk of the companies, which will be the same regardless of whether you use PayPal or a merchant account.

    As an example. When I set up DigiResults I had to prove to my bank that I wouldn't be dealing with various countries marked as risks by their insurance under writers. I did this by showing that I wouldn't be transacting directly but would be using PayPal to do it, who don't allow people from "risk" countries to have an account.

    I'm not trying to make the point that PayPal are better, just that it's not a clear cut decision as this thread seems to be suggesting.
  • Profile picture of the author zaccks
    Just switch to another payment processor. you can never satisfy paypal.

    The problem with paypal is that even if you maintain their rules and the person making the purchase do some unusual activity they will suspend both the buyer and the seller's account.

    use payment processors that accept both paypal/credit cards, so that you can finally withdraw your funds without any problemz

    As for paypal, Everyone is complaining! TODAY OR TOMORROW
  • Profile picture of the author tpw
    I wanted to thank Derrick (Centurian), Big Mike and Andy Fletcher for their contributions to this thread. They have almost single-handedly made this thread worth reading.

    Of course, I don't have any Thanks buttons left today, so my sincere "Thank You" here will have to do for now.
  • Profile picture of the author HX3MEDIA
    I disagree!! I have products Affiliates promote and I promote for people. Its hard to compare Amazon to clickbank, clickshare, etc.... Downloadable products in which a Seller has minimal cost...Im happy to pay 50% or more.. If its a physical product it's different, they have a lower margin to work with... Affiliates are a crucial part of a business.. Where the hell else you going to find someone to spend their cash on advertising, etc.. and there time with no guarantee of any payment..

    Your Logic is Flawed.. Let Google, Facebook, etc stop taking affiliates money for ads and see what happens to revenue.!! Let's see how Amazon would do if they cut out their Affiliate program........Hmmmmmmmm

    Simple Math is as a Vendor I would rather have 50% of 100 sales than 100% of 5 sales..
    A good vendor will look out for his affiliates...
  • Profile picture of the author 1shotoffers
    Well since I don't see anyone else discussing this, I am going to offer a warning to any vendors/merchants that plan on using any system offering Paypal Adaptive payments (or split commissions as it's come to be known).

    Scammers are targeting split commission systems and exploiting the split commissions which can cause vendors not only to lose hundreds or even thousands, but also have their accounts limited or frozen by Paypal as a result of not only excessive refunds, but because of suspicious or fraudulent activity all caused by this "scam".

    Here's how the scam works. The scammers signup as affiliates for a vendors product. In many cases they sign up with multiple accounts. They will often use fake IPs and create their email accounts to appear to be U.S., Canada or U.K. based. Once they are approved to promote a given vendors products they quickly jump into action and make purchases via their affiliate link with hacked paypal accounts or credit cards. Once they've hit their "target" amount (which usually happens very quickly) they simply terminate the association between their Paypal account and the site offering the split pay system.

    Thus, in a few days, the "unauthorized use" claims start to pour in and in case of credit cards, chargebacks pile up. In normal cases, when you refund a payment, the association of their Paypal account would allow for you to also recover the commission paid to the affiliate. However, these scammers have already cancelled this association so you wind up refunding the unwitting customer the full purchase price, but LOSE the commission already paid to the affiliate forever.

    But on Paypal's end, they see a flury of unauthorized account uses and chargebacks and suddenly your account is limited for suspicious activity and the subsequent high number of refunds associated with the Inquiries. What's worse is it happened because of Paypal's own API that they in fact endorse as being "safer"!

    This is not speculation. It's happened to me personally and to others that I know. In my case my account was in good standing for over 12 years and not until I chose to sell via the split pay system and get scammed in this manner was there ever a problem. Luckily in my case I was able to show the relationship between the spilt pay purchases and the unauthorized uses and was restored.

    Conceivably, this is why some have incorporated delayed payment to affiliate schemes etc. However, when you have to start screening each and every affiliate and then manage delayed payments over several weeks etc, the "wait your turn" system such as Warrior Plus' original system and RAP type scripts starts to look more and more appealing. In the end it seems more secure as well as it's kind of tough to scam this way when some of the purchases made would be directly through their own account and thus put them at the same risk.

    I see that Warrior Plus is now offering the split payment option I but don't think that $3.99 per account is going to deter scammers from signing up as affiliates when their "take" could be hundreds per account before any knows what's hit them.
  • Profile picture of the author carolw44
    I'm experiencing that issue right now. It's not much fun.
  • Profile picture of the author Rampo
    When its working smoothly paypal is like butter... but when something happens. oh geez so many headaches!

    But I still prefer paypal as it is the easiest and most common way that I get paid.

    Tried out alertpay / payza... even more unsatisfied...
  • Profile picture of the author JayWiz
    This is very interesting thread, i remembered i also asked the same question regarding paypal as payment processing on another forum. I also looking for answers for this problem, how paypal ban system works. I noticed many big players can also get this issue but on the other side there are many others also who seems on the safe zone.

    Do you ever notice why some big gurus or product seller seems don't have this issue? example like Market Samurai, they still use paypal till now and already have more than 400,000 users, no problems till now.

    Until this can be solved, i decided to use other payment system such as 2checkout, i know it still not safe but at least it doesn't have many horror stories like paypal. As for affiliates my choice is using clickbank, i can receive payment safe using check and my affiliates still paid by clickbank, win-win solution at least for me.

    Maybe some big wso sellers can shed some light here? )
  • Profile picture of the author williamk
    Paypal Sucks Period. You should go to 2CO if you want to pull big volume and safely too. Paypal is just moronic.

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