10 replies
i have a pretty decent idea, at least i think so, and i would like to move forward in a small, baby steps...one mental hurdle i am thinking about is charge backs...

i want to market an audio course. but i feel as though if somebody isnt pleased in any capacity, they have the right to dispute the purchase regardless if they purchased with paypal or credit and then, im out of luck...

are any of you IMs out there, selling information or audio courses or ebooks or tips or niche products or anything in any industry being hurt by chargebacks? any way to over come them?

i mean if you are selling an audio course that teaches people how to earn money within real estate, and the person who buys the audio course thinks it was a waste of money AFTER he bought the book and listened to it and saved it etc, will they have a rightful claim in filing a dispute?

my wife has sold numerous items on ebay...shirts, jewerly, bags etc...and has had only a couple items disputed...i was wondering how disputes play out if they item purchased were info products?
#chargebacks
  • Profile picture of the author Tsnyder
    You will have no protection with digital products. The smart thing is
    to deliver the product in both digital and physical form. If you ship a
    physical product via USPS via registered mail with a return receipt
    PayPal will not entertain a charge back request so long as you provide
    proof of delivery.

    I did this once with a $495 product. A few people tried to charge it back
    and PayPal denied every request because it was a physical product and I had
    proof of delivery.

    Mailing a CD or DVD is pretty cheap insurance against bogus claims. You don't
    give them the option... you require them to enter their mailing address on the PayPal
    form. If they won't do that, pass the deal. They're a guaranteed charge back.
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    • Profile picture of the author PPG19
      Originally Posted by Tsnyder View Post

      You will have no protection with digital products. The smart thing is
      to deliver the product in both digital and physical form. If you ship a
      physical product via USPS via registered mail with a return receipt
      PayPal will not entertain a charge back request so long as you provide
      proof of delivery.

      I did this once with a $495 product. A few people tried to charge it back
      and PayPal denied every request because it was a physical product and I had
      proof of delivery.

      Mailing a CD or DVD is pretty cheap insurance against bogus claims. You don't
      give them the option... you require them to enter their mailing address on the PayPal
      form. If they won't do that, pass the deal. They're a guaranteed charge back.
      This is not completely true, thankfully. There is a lot of confusion regarding PayPal protection for buyers and for sellers. You are completely covered selling a digital product if you can prove you have deliver it and as long as the buyer purchased your digital product using their paypal balance. PayPal will protect you in this case. If the buyer used a credit card to make the payment using PayPal to buy your digital product, then PayPal will not able to do anything for you. Credit Card companies do not like digital products and always settle on the buyers side.

      Sending a cd to the buyer is an old practice digital products sellers used before PayPal clarified their seller protection policies. You don' have to do that anymore.

      I recently, just last week, had a similar issue selling a website on Flippa and the buyer claimed a refund. I gave PayPal a call and explained the situation, they immediately denied his refund claim.

      As long as you deliver your product, you have proof of delivery and the buyer purchased your digital product using their PayPal credit you have nothing to worry about.
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  • Profile picture of the author alamest
    I understood what are you saying, here is my thoughts on charge-back..

    I am running a website which is non-tangible goods which is digital products and I have received many dispute in this couple of years and receiving every month.

    there are some people who purchase the service and claim it back, unfortunately PayPal do not give protection to the seller on charge-back and claims on digital products or non-tangible goods but PayPal does investigation on the transaction and if they find out that transaction is fraud then they help the seller.

    My suggestion is that, complete the order when you see that person PayPal account is verified.

    What I do is, I check their social profile and go through their social profile and if I feel that this person is doing fraud then I don't complete their order.

    I complete the order one by one and send the details to the buyer PayPal email address not on provided email address, as my product need to be send manually through email that is why I can do all this check but in your case if it is automatic then is very hard to verify every single order.

    If you can have mobile verification option that will help you reduce the claims but you have to work with numbers, if you are getting 100 of orders and 5 are fraud or whatever then you have to do your math.

    Because every company have wastage so you have to count this as wastage.

    Here is the verification I do.

    1. Check there facebook profile with provide email address
    2. Check whether their PayPal account is verified or not
    3. You can visit this site Spokeo People Search | White Pages | Find People and search with the email address to find that guy social profiles.
    4. Match the provided email address with PayPal email address.
    5. You can call directly to PayPal and ask whether the transaction is valid or not.

    There are many verification you can do but this are main checks we do.

    I hope this helps you
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  • Profile picture of the author moneymax
    Originally Posted by Roscoe4 View Post

    i have a pretty decent idea, at least i think so, and i would like to move forward in a small, baby steps...one mental hurdle i am thinking about is charge backs...
    Roscoe4;

    Unfortunately charge-backs are a cost of doing business. Anticipate it, put it in your budget and move on. It is very aggravating to have someone initiate a charge-back on your baby. You have spent hours upon hours creating your product only to have someone do a charge-back.

    For the life of me, I don't understand some people. I believe they lie awake at night scheming up ways to screw marketers. I believe they make it their lives mission to somehow mess over someone that is only trying to better their life.

    In my business, I have had people screw me over for no reason at all. So, now when it happens, I put it behind me and move on. I used to get mad, scream at myself or anyone who will listen, but I was only hurting myself.

    To minimize a chance and a charge-back, Roscoe4, be the best that you can be. Go above and beyond in the creation of your product. When it is finished, ask yourself, "Self, not that my product is finished, what can I do to improve it?"

    Down here is south Louisiana we call that "lagniappe" a little something extra.

    I believe most people are honest - some aren't- and if you produce a product that is the BEST - economic fallout will be minimized.

    Go Forth and do your best.

    Thank you.

    Al Pooser
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  • Profile picture of the author topcoder
    I worked in the Credit Card Processing industry, anyone can chargeback anything. It doesn't matter, paypal might not allow it shipped goods with proof of delivery, but if it was paid by a credit card through paypal, as soon as paypal gets hit with the chargeback, you better believe paypal will stick it back to you.

    It happens all the time and their's nothing a vendor can do, they can try to take legal action, but I doubt any vendor is going to waste their time for a digital product and a chargeback fee.

    If a customer get's something and it wasn't what they expected and that's all they have to say and they can charge it back.

    Perfectly legal, happens all the time, vendor always gets screwed.
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  • Profile picture of the author Mandeep Gill
    Hi

    I would really appreciate if someone could help me here. I am into a High risk business and have been facing lots of friendly charge backs which had caused terrible issues. i was wondering if

    A VIRTUAL PREPAID CARD USER REQUEST CHARGEBACK?
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    • Profile picture of the author Steve B
      Originally Posted by Mandeep Gill View Post

      . . . friendly charge backs . . .

      Now there's an oxymoron I haven't heard before!

      Steve
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      Steve Browne, online business strategies, tips, guidance, and resources
      SteveBrowneDirect

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  • Profile picture of the author Zoe_21
    Confused

    You say:

    have been facing lots of friendly charge backs which had caused terrible issues.
    then

    wondering if A VIRTUAL PREPAID CARD USER REQUEST CHARGEBACK?
    These 'friendly chargebacks'.

    If are being successful in getting a refund, have you answered your own question?

    If not, is there such a thing as a prepaid credit card? In my view, it's still a valid transaction card with money loaded on it and as long as the card has Visa, Mastercard or American Express logo it means the card issuer complies with chargeback rules and guidelines.

    As you are aware, chargeback is a process that can allow debit and credit card holders to reverse transactions when there is an 'issue' with the goods or services purchased using a card especially with those logos i.e. credit, debit and even prepaid.

    am into a High risk business
    Suggest ask others in the same business what their chargeback rates are (if any) and if low, adapt and model them in how they conduct their business

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  • Profile picture of the author Mandeep Gill
    Zoe_21 Thank you for replying so if i understood correctly even though customer Real master or visa card is not involved and customer is paying through Virtual Prepaid bought from Entropay etc customer can still call his bank and request chargeback or virtual card provider like Entropay can acts same as bank.
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  • Profile picture of the author Mandeep Gill
    Hey i just noticed that i wanted to say friendly Fraud.
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