charge back Scam

India
January 30, 2009 11:03pm CST
hi , i just got dumped from a user who use credit card company to do scam..i have several websites which are selling digital goods here is summary which actually happened..a user came and bought my product and paid me $200 and after 2 months he filed chargeback against me and now paypal has deducted $200 from my account and just told me that the person has filed a chargeback against you thats why paypal has return this money ..in this case i become a looser at both end ..first paypal has taken my hard earn $200 back from me . second user has got my product absolutely free and last paypal charged me $10 fee for two transaction so i lost $200+$20=$220 ..so this is how people are using charge back and paypal policy to scam innocent marchants who are doing vertual business. i m sharing this info. here if anyone knows any thing to protect this kind of fraud then please suggest me for further reference. Positive response would be really a great help for me. waiting for a helping hand. thanks.
2 people like this
3 responses
@nowment (1758)
• United States
31 Jan 09
Insist that the buyer pay for certified delievery this way the buyer has to sign for the item, you can then make a claim to paypal that their claim is fraudulant. I have myself used paypal to get money back from a seller who didn't send what was supposed to send, then on something that was a 13 dollar item, sent me back as refund 1.80. The answer from the seller when I tried to resolve this directly was not to respond. SO I used paypal. While I would prefer not to use this method. I also am a seller, and use paypal and fortunately no one has done this to me as yet, and I hope that it will not be done. But when it comes to having sold something that must go out to the buyer I normally sell readings so they go out via email, and I keep copy of emails for verification, but when I do sell items that need to get mailed out I include in the cost of shipping the fee to send it return receipt.
1 person likes this
• India
31 Jan 09
hi friends thanks for your response but i m selling non tangible things like software script or ebooks do you really think i can follow above mention things ? people come and pay and directly download this is general flow of transaction which my website customers..and paypal request for shipping details ? how i can provide shipping details because i m not delivering anything physical item or goods..? please suggest
@nowment (1758)
• United States
1 Feb 09
That is a tough one, since as you have said it is connected to a download. How to protect yourself would perhaps be possible, have you considered opening a dispute with paypal over this ? And contacting customer support and finding out what they say you can do to protect yourself from future fradulante cliams and talking to them to find out how it is that they just refunded the money with out even contacting you on the claim?
• United States
7 Feb 09
You can use the buyers digital signature. He needs to sign the online agreement and then only go for the transaction. Your information will be really helpful to me thanks for starting this discussion.
@KrauseHome (36764)
• United States
31 Jan 09
Wow!! This is Crazy. I know since they are hooked up with Ebay or used to be, there should be a way you can prove to them that this item was received from the Customer, so in turn you will get your $$ back. If they cannot do anything for you, than this is BAD business practices on their part and I do not blame you for feeling leary as well. I would be checking into this a little more if I were you and hope they can fix this somehow. Wishing you the Best.