My Client Made a Chargeback of $180! Any Paypal Alternatives?

You can have a merchant account with any of the larger companies like Google Wallet, 2Checkout or Authorize.net

But you are still up against "proving" that you did the work.

One of the best ways I know to CYA with PayPal is to communicate with the client through their private email as well as ensuring updates are done using the PayPal email portal.

When you start work you send a note through the PayPal email that says "as discussed", work has started and include a statement with the time and cost. Keep doing updates using both their email and PayPal

Cash...

Always expect that you will get a chargeback.

Warrior Forum could be filled with BS "chargeback lost" stories.

Remember who the CC company really cares about (Hint: who is getting the "rewards points" - not you)

Any payment processor you use will generally favor the buyer in a chargeback dispute.

If it makes you feel any better, after about 2-3 chargebacks the user's cc company might start restricting their use and/or investigating for possible fraud. They can lose also lose their cc. Chargebacks aren't like refunds in that sense.

Sorry this happened to you.

This thread should keep you busy for awhile.

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

RoD

Paypal is pretty good at fighting bogus chargebacks if you provide them with the right evidence. I found that fighting chargbacks in Paypal is far easier than Athorize.net, Google Wallet, or 2Checkout.

What will help you.

1. Explain that the customer is ignoring your emails now, if they really never placed an order with you they would have no reason to ignore you. They would email you back and say they did not place the order.
2. Make the user confirm their email address before you activate them. If they confirm their PayPal address, they are also going to have to explain how their PayPal email was stolen.
3. Have your software take their IP address on sign up. An IP time stamp of who placed the order is very good.
4. Have the customer fill out their full name when they sign up.
5. Have the customer fill out their website, this I suspect has helps me out a lot. You can then cross check the website with the WhoIs info and see if it is the same person who placed the order.
6. Have your software be able to provide last login or when the customer used you last or any other similar type of documentation. I have had people file chargebacks and then continue to use the software. Either they forgot what they ordered or they are totally scumbags, either way I will win if I can provide this.

If you can provide four to five of these you should be in pretty good shape. If you can provide all six you will win for sure.

I have always found it easier to just refund and call it a day. The hassle and possible negative review is far more hassle than just issuing a refund. There's an old saying that 1 unhappy customer review will destroy 100 good ones. Just my .02 cents

What you fail to understand is that a charge back is from the credit card company and not from PayPal. The client paid with a credit card and the contacted the credit card company to stop the charge.

The credit card company now charges PayPal for the charge back and then you don't get your money or the money is taken out of your account to pay the charge back.

Because the customer contacted the credit card company and not PayPal, PayPal has no recourse but to honor the charge back.

If a dispute was filed in your PayPal account, then you can fight the dispute. It is not PayPal fault when there is a charge back.

I hope this has been helpful,
Steve Yakim

Nice to see so many members chipping in with useful advice. Thanks for all your suggestions. I understand that it is not Paypal's fault but still there should be some rules for the credit card company of the buyers. The buyers simply should not be able to get away by filing for a chargeback which their credit card companies should win in their favor. I mean, there should be arbitrator who decides who is at fault

I think Skrill and EgoPay don't allow chargebacks on their transfers.

Chargebacks you should never give up on and just refund because you would actually lose money due to the chargeback fee.

You do not deal with the credit card directly because the credit card pays PayPal and PayPal pays you.

PayPal will represent you to the credit card company if you provide them with good information about the customer, they will then fight the chargeback on your behalf and if you provide them with legitimate evidence that this is a bogus chargeback you will win and the money will be returned to your account.

I win almost all of my chargebacks, the only ones I do not win are the ones where the credit card was really stolen.

You need to know that if you are selling stuff and earning money through paypal purchases, people will always open a dispute with you. These are just the "bad apples" of the bunch.

You can fight it or you can just refund them the money and move on.

TOM is correct. Don't bother switching. The BUYER is always right, you will lose.

I have had experience with this and here's how you deal with situations like that. Paypal will only fight for you if you give them something to fight with. That means that you need to have your legal ducks in a row.

1. Make sure that there is a legally binding agreement between you and the client.

2. In your agreement, include a clause that says that the client has to pay a non-refundable deposit or once work is started they can only get a partial payment as a refund. This will not only keep your client from backing out, but if they do at least you have something for the time you did spend.

3. Make sure all communication is time stamped (which should be automatic) and you should also send receipt requested emails so that you know exactly when the client opens the email.

4. When you do work always use a time tracking software as proof of the time you spent on the project (there's free ones out there).

5. If you haven't received an email back after the second communication, give Paypal customer service a call. Ask them specifically what to do about a client that has failed to communicate after paying for a service. It's not about the answer they give you, it's about the trail that you have just created. Now you have proof that you tried to get Paypal to help you and it's recorded. More proof.

With these things you have proof of the agreement, proof of communication, and proof of time spent that backs up your claim. Then you can email this proof to Paypal who will in turn send it to the credit card company and dispute the customers claims for you.

Can you tell I've been stiffed a couple of times? Lol

Do you have proof that the actual owner of the credit card was the one that paid for your services and that it wasn't stolen?

The money was for my SEO/Video marketing related services and not for any physical or digital goods. I do not have any signed contract with them. Actually the client payed me through the Buy Now button on my site. That is how I usually get orders and work on them. Didn't have any problem until now.

I had once some guy claimed he never ordered goods from my website but one friend from that country help me out...that guy claimed he never order goods and he was out of town during pickup, goods where pickup like 200m from his house near to his home...so to be true, it would had been #1 someone go to his house and steal the post office ticket, #2 use his creditcard and his IP as i saved it, #3 it don't matter if he was not around, then probably his friend picked it up... #4 i exchanged emails with him before purchase (his genuine emails) after purchase he said someone hack his computer email so first half was his emails and 2nd half was not...yeah right...he chargeback it $6xx USD, and i fought for it and CC company did not buy his bullshit story, i won and after he bullshit in some forums how "i cheated him" lol people are so funny they do anything to cheat you off

UNFORTUNATELY, he should have called you. The bank is seeing this as just a cancellation of work not rendered. I don't think chargebacks have anything to do with paypal. you are going to get it with any merchant processor, especially something like SEO that is tough to prove. There are many posts on WF on this...read them. You may win some but it is just the cost of doing business.

1. Half the advice you have gotten so far is just wrong.

2. I don't know what you were selling but lets say it was web design work. Put the files on a CD and mail that ASAP with delivery confirmation and tracking. Now you provide the tracking number to PayPal and you will win. Paypal talks to the CC on your behalf if its showing as just a dispute in your Paypal account. Unless they tell you otherwise, just submit the Tracking info in the dispute area and you should be good to go.

Best to just forget it and move on. Just be happy you didn't pay $10 st ship $100 worth of merchandise. At least you didn't lose anything but your time.