Avoiding "Skipped Payments" in PayPal (fraud buyers)

10 replies
I am offering them to use my product for 1 week, and after a week their paypal gets charged.

However there's an INSANELY high "payment skipped" error for those that took it, meaning I didn't get a single cent from them at all.

Although I believe I can't totally avoid this, but is there any way I can minimize this from happening (and making sure I get paid!) ?
#avoiding #buyers #fraud #paypal #skipped payments
  • Profile picture of the author New Girl
    There is no way at all to avoid it! You are offering a free trial so they are taking the free trial and cancelling before they get charged - that's pretty much how it works. Hopefully you have a product that they can't access anymore once the trial runs out.
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  • Profile picture of the author New Girl
    I hope that didn't seem snotty - I didn't mean it that way. I am a little bit confused though - if you offer a free trial and then people cancel, how are they "fraud buyers?"

    Isn't the purpose of a free trial to let people try out a product for free to see if they want to pay for it?
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    • Profile picture of the author Unisons
      Originally Posted by New Girl View Post

      I hope that didn't seem snotty - I didn't mean it that way. I am a little bit confused though - if you offer a free trial and then people cancel, how are they "fraud buyers?"

      Isn't the purpose of a free trial to let people try out a product for free to see if they want to pay for it?
      Actually it's not really a ''trial''. Let me rephrase it.

      It's more like: $0 today, and then $x 2 weeks later. I want them to get started for free, and then they start paying 2 weeks later.

      But majority of them never ever paid. Is there something I can do to minimize this from happening? Like any ways / settings or strategies to make sure their PayPal even have money to begin with or something?
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  • Profile picture of the author New Girl
    Oh I see! I don't know why I thought your thread said "free trial".
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  • Profile picture of the author ChrisWrok
    you might try a few emails, sent to your "1 week trial" members only
    reminding them why they should stay because of xxxxx...
    or offering even more if they do...

    if the model doesn't work, tweak it or even change it..
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  • Profile picture of the author Lizfish
    If people want the product badly enough, they won't skip the payment. I agree with Chris. Maybe also ask them why they have cancelled. Good luck
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  • Profile picture of the author Unisons
    I forgot to mention. This is in the MMO niche.

    They get the FULL download upon "purchase". I've always thought skipped payments may not be due to 'cancelled' payments? I thought it might be an empty PayPal account or something
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  • Profile picture of the author George Wright
    Many people perceive "get it today, and pay in two weeks," as a two week free trial. They don't see it the same as "Take the TV home today and no payments til next month."

    Such is the nature of digital products.

    Most sites and products who use that tactic really are offering a trial period.

    What you could do is make it clear that your product is financed by you and the finance conditions are $0 down and the balance in 2 weeks.

    Personally I wouldn't do it that way. I'd go with $1 ( or half etc.) down and installments payment later. You could even do 1/3 down 1/3 in 2 weeks and 1/3 final payment in two weeks from then with the offer "Make the first two payments on time and I'll make the third payment for you."

    There is unlimited variations of this.

    George Wright
    Signature
    "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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  • Profile picture of the author niravmehta
    Don't offer all your content on Day 1 if you have a 2 week trial (or anything that practically means that).

    You can drip the content - there are tons of membership systems that do this. People will only see 10% of the site initially. You tell them that rest of the content will open up after Week 2.

    You also email them, make them aware of the value of content that's opening up after Week 2.

    Tweak until you get the rates down.. But cancellations are normal in cases like this - especially since you are operating in a crowded niche.

    HTH.
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  • Profile picture of the author JensSteyaert
    I really depends on what you are offering. A free trial can work very well if people need the product after the free trial, example: Getresponse.

    For downloads it's a different story, because you'll have more work convincing people they need the products you are offering after they get billed.

    Just set up a good autoresponder sequence explaining all the benefits and you should see an increase in payments. If you do that and you still don't see a lot of payments (less than 40%) then you need to reconsider your strategy.
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