The Way to Handle Lame Refund Request (Paypal Processor)

23 replies
I have 2 main products: video access and ebook. Some guy sends me a polite message asking for a refund saying he thought it included videos (it doesn't, and after years with this site, I can't remember any other customer who made that mistake). He's already downloaded the ebook set.

It's a measly 12.95 but I'm more concerned about setting a precedent of students (that's my market, and I'm sure they talk) who may try to use this method to get the ebooks for free (if it was video refund I could simply cut access). I'm not too worried about angering him or him telling his friends not to buy coz my product is a need and not a want (if they don't buy my product, they fail/flunk their school, and I have 8 million YouTube video views).

Question is, how to deflect the refund request; should I send a polite email back asking him to show where on my site it says that the ebook includes the $97/month video access? Or, should I just ignore it and respond to Paypal if he files a dispute?

I know some are going to claim that there's no way for a seller to win a Paypal dispute on a digital producct... that's inaccurate because I've won every single Paypal dispute (although it hasn't happened often) after showing screenshot evidence.

Cheers!
#handle #lame #paypal #processor #refund #request
  • Profile picture of the author Write Now
    Just give the guy a refund
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  • Profile picture of the author BradVert2013
    Better to give the refund than start getting into PayPal disputes. This won't hurt you as much as you think, if at all.
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  • Profile picture of the author salegurus
    Refund and move on.... Don't be an a... About it.....
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  • Profile picture of the author Curtis2011
    You need to decide on a refund policy to guide you in the future.

    If you don't offer a refund on your sales page then you could just refuse it.

    I personally give refunds if customers demand them, even if they are clearly in the wrong, because I don't want to deal with angry stupid people. Especially angry stupid people that would complain to Paypal and maybe get my account punished.

    For example, my first refund request I ever got was from a guy who thought my digital ebook was a physical book that would be mailed to him.

    Never mind the fact that literally the third sentence on my sales page said that it was not a physical book, just an ebook. Never mind the fact that the payment details do not include his address so there would be no way for me to ship him a physical book even if I wanted to.

    I told him he ordered an ebook and he got belligerent and said he was sure he ordered a physical book.

    Finally I just refunded him because stupid people are a waste of my time.
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    • Profile picture of the author pawandave
      Banned
      It is always time consuming to deal with pp dispute. First tryto convince buyer then only go with pp because for that you have to give all proof how they try to cheat.
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  • Profile picture of the author Profit Traveler
    Banned
    Always in every instance take the high road and have the mentality of making a new sale right away. That always cheers me up.

    I once had a sales thread about 16 pages of nothing but positive comments it really humbled me. But of course one day I did get a refund faster than the person could have actually read it.

    But not just hey you have a no questions asked refund policy and I would like a refund...he had to tell me how my product made no sense....all I could do was smile and issued the refund just as fast as he requested it.

    I should mention while using a certain platform you would know back in the day I had a guy that changed the price to one penny then he purchased it! I do remember calling him out on it but I did not want to anger that guy..
    Damn evil genius!

    Never dwell on those types. I just think about the people who appreciated my hard work and the relationships, partnerships, friendships and awesome opportunities that I was blessed with from great customers.
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  • Profile picture of the author leadscrape
    I agree with what others have said. Give them a refund and don't start a Paypal dispute.

    1) Paypal (like every other processors) always stands by the side of the buyer.
    2) You will always get refund requests from people that didn't really want to pay for the product, but in my experience that should not be over 5%
    3) If you product is good, you will generate sales and make money from it, forget about those 5%
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    • Profile picture of the author Mike Anthony
      Originally Posted by leadscrape View Post

      1) Paypal (like every other processors) always stands by the side of the buyer.

      Hi Leadscrape thats not true for digital products. In fact until relatively recently ( the last year) buyers almost always lost what Paypal calls intangible products. Buyer protection was only recently extended to digital items but sellers still win such disputes regularly.
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  • Profile picture of the author agmccall
    You could also apologize and offer access to your videos

    al
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  • Profile picture of the author Mike Anthony
    Originally Posted by junkofdavid2 View Post

    .

    It's a measly 12.95 but I'm more concerned about setting a precedent of students (that's my market, and I'm sure they talk) who may try to use this method to get the ebooks for free (if it was video refund I could simply cut access). I'm not too worried about angering him or him telling his friends not to buy coz my product is a need and not a want (if they don't buy my product, they fail/flunk their school, and I have 8 million YouTube video views).
    Cheers!
    A lot of people on this site are accustomed to MMO and affiliate marketing. So they will almost always tell you to refund and move on because that works for them in that niche. However if you have legitimate concerns that the course will get a rep among students as easy to get free by just downloading the ebook and getting an automatic refund then i think your concerns are legitimate and if you think its just an attempt to get something for free and it will have no affect on yours sales I'd say on principle deny the refund. However I will say that if you haven;t already you need to find a better way of presenting all your material that a traditional ebook if you have something very lucrative. converting it to something harder to copy is a better option.

    What has happened in the MMO and Im market place these days is that it attracts and keeps the most scammiest of buyers - basically thieves that try to get things for nothing. One of the reasons this will persist and what encourages buyer scamming is the sentiment by a lot of sellers that if someone asks for a refund just give it regardless of circumstance.

    so the IM niche just gets scammier and scammier since the knee jerk automatic policy to refund under any situation simply rewards and encourages thieves.

    However if you think the buyer could have legitimately confused the two offers then you should refund. Al's suggestion above of offering the video (perhaps at a discount) is a good first step
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    • Profile picture of the author JohnMcCabe
      Originally Posted by Mike Anthony View Post

      A lot of people on this site are accustomed to MMO and affiliate marketing. So they will almost always tell you to refund and move on because that works for them in that niche. However if you have legitimate concerns that the course will get a rep among students as easy to get free by just downloading the ebook and getting an automatic refund then i think your concerns are legitimate and if you think its just an attempt to get something for free and it will have no affect on yours sales I'd say on principle deny the refund. However I will say that if you haven;t already you need to find a better way of presenting all your material that a traditional ebook if you have something very lucrative. converting it to something harder to copy is a better option.

      What has happened in the MMO and Im market place these days is that it attracts and keeps the most scammiest of buyers - basically thieves that try to get things for nothing. One of the reasons this will persist and what encourages buyer scamming is the sentiment by a lot of sellers that if someone asks for a refund just give it regardless of circumstance.

      so the IM niche just gets scammier and scammier since the knee jerk automatic policy to refund under any situation simply rewards and encourages thieves.

      However if you think the buyer could have legitimately confused the two offers then you should refund. Al's suggestion above of offering the video (perhaps at a discount) is a good first step
      This is true. In fact, dealing in this marketplace, even if one's products are in totally different niches and markets where this attitude is rare, many online marketers start getting paranoid about being scammed or ripped off.

      Curtis (above) mentioned a buyer who thought he was buying a physical book, even though the sales copy had a sentence early on declaring the product to be digital. I'm going to guess that that sales letter had a nice big image of a 3D book, just like so many. Not a shot at Curtis at all, just a thought about how someone might mistake an ebook for a physical one. Same goes for videos. How many infoproducts consist of a collection of online videos, yet are represented by images of DVDs or nice boxed sets?

      In this case, I'm on Mike's side. If you have a published policy on refunds, stick to it - every time. But if push comes to shove, be prepared to make an exception. And be open to the possibility that this buyer is indeed acting in good faith.
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  • Profile picture of the author Kay King
    how to deflect the refund request; should I send a polite email back asking him to show where on my site it says that the ebook includes the $97/month video access?
    Don't try to "deflect" - ANSWER it. If you don't offer refunds, say "sorry, no refunds". If you do, refund it. Step up, give the customer an answer and stick to it. If he files a dispute you will win or you won't.

    There is no polite way to challenge a paying customer with "prove it" without looking rude yourself so I would strongly advise against that route.

    Not sure what "lesson" you would be teaching. If this is a one time thing - solve it and move on. If it's more than once, skim your own sales copy to see if "video access" is mentioned in the copy where someone might misinterpret. Might be a phrase you want to change to avoid misunderstanding in the future.

    It's your product - your buyer. Usually comes down to how much time it's worth to you to keep $12.95.
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  • Profile picture of the author StephyHarmonIM
    You have two choices here:
    1. Give the refund - avoid the time wasted on the PP dispute process
    2. Offer access to the videos - are you really losing anything here?

    Maybe add strings to the access, like they have to provide a viable review of the product in exchange for access.

    McDonald's has a policy of always making the customer happy no matter how bogus their complaint or request may be. If they're there and the bought something, keep them happy. FOOD FOR THOUGHT..
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  • Profile picture of the author Brent Stangel
    It's a measly 12.95
    Your words...

    but I'm more concerned about setting a precedent of students (that's my market, and I'm sure they talk) who may try to use this method to get the ebooks for free
    So you think no one before now has thought of refunding to get a digital product free?

    I would be more concerned with them spreading the news of how you refused to refund a measly $12.95.
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    • Profile picture of the author Mike Anthony
      Originally Posted by Brent Stangel View Post

      Your words...



      So you think no one before now has thought of refunding to get a digital product free?
      thought of it and knowing they can successfully do it for a particular product is two different things

      I would be more concerned with them spreading the news of how you refused to refund a measly $12.95.
      how does that discussion go . I bought it and couldn't get a refund like i can;t with many pieces of software so don't buy it? As OP has expressed it he is concerned with an entire class or all classes at a school thinking it s easy to get if for free. Thats a lot more than $12.95
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      • Profile picture of the author BradVert2013
        As OP has expressed it he is concerned with an entire class or all classes at a school thinking it s easy to get if for free. Thats a lot more than $12.95
        If that many people want to get it for free then they're not going to buy it then request a refund. They'll just start pirating it.

        Too many people worry about this refund issue. In fact, I'd argue the OP should have a 100% money back guarantee if the buyer isn't satisfied. There's no evidence such a guarantee leads to an increase of refunds. For $12.95, it's not worth the trouble.
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  • Profile picture of the author TheGMa
    Write a strong refund policy up front. There is no rule that you have to offer a refund for a digital product (see FCC rules), although it's good business to do so.

    Give the dude his money back and remember that selling anywhere is a gamble. The objective is to ensure that the house wins most of the time, and the odds are in your favor. However, enter into conversation with him because there is ALWAYS an opportunity for a sale, if not now, then later. If not this product, then another.

    That's why funnels with a variety of offers are built.

    Customer: I thought your offer comes with video training. Since it doesn't, may I have my money back?

    Okay, there could be a couple of problems here, one being that he has a reading problem and does better with video training, and the other being that it is becoming customary to provide written, video, and audio presentations as a courtesy, so he may have assumed the vids would be there.

    I never consider a customer to be a rotten egg unless he actually stinks to high heaven. Shame there isn't an app that kills the product upon refund. Damn I'd love to see that.

    Anyway, be nice, apologize for not having videos for sale, refer him to your YouTubes (which are videos), and ask him if there is anything else you can do for him.

    It's called Customer Service.

    - Annie
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  • Profile picture of the author junkofdavid2
    Thanks for all the replies, guys and gals! From different points of view including MMO and IM.

    I'm not in the IM niche, by the way, and I do have both premium videos and premium ebooks .

    For now I haven't replied to him yet and he hasn't followed up.. still thinking how to handle it taking into consideration your advice..
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  • Profile picture of the author 60MinuteAffiliate
    Welcome to the world of digital marketing. Accept the refund, it's part of doing business online.

    However, what you should do is think about it for a second. This person who is wanting a refund has provided very important feedback to you -- he really wants videos as well with what you are offering.

    So rather than focusing on the negative, why don't you look at adding videos to your course. Of course when you do that too you can charge more or you can offer it as an upsell.

    He's trying to tell you something.

    Have a blissful day.

    Colleen
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  • Profile picture of the author la dominatrix
    You have two clear choices both of them have consequences.
    One
    you can give the guy a refund can be annoyed at yourself.
    Two
    you can ignore the guy and then worry that he will report it as a fraudulent action. When he does you will waste a lot of time dealing with it. You may well win in your sense of the word in the sense that you don't have to give him his money back but you will definitely have lost because of the time you've wasted.

    Give him a refund and have another look at your refund policy.
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  • Profile picture of the author Neromancer
    One of the best ways to avoid this problem is to offer a LIFETIME recurring subscription; give them some content once a month, like a newsletter and if they ask for their money back they LOSE this forever. This concept dropped my refunds to ZERO as the customer perceives they are getting something forever, and it solved this problem for me.
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  • Profile picture of the author RobertJFox
    Sorry if this is a duplicate it seems to have disappeared somewhere

    honestly its not worth the trouble give the guy a refund, also send him a polite reply explain the product that he bought was not a video product but you do have a video product available if he is interested and then send him a link to the sales page.

    As for people trying it on to get free products, this happens all the time one of my mentors told me a story of a physical printed manual that he sent out to someone and they returned a poor quality photocopy, obviously keeping the original, I guarantee the people who do this will never use the product anyway.

    hope that helps
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  • Profile picture of the author spazz896
    for $12.. it's not worth the time of hassle/drama, you can use that focus on getting more sales.... instead of worrying about it.... I would refund this with no questions asked, if you don't he'll NEVER buy anything from you again, and tell his friends.... At least with a refund he still might buy from you in the future... I've refunded someone for $5k physical product... and because he liked dealing with me (no-headaches) came back to buy 10x more...yearly.
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