Here come the chargebacks.

Accurate · 05-14-2009, 01:49 AM

Well, I've heard that Web Hosting business has become quite the area where PayPal chargebacks occur the most.
????: NamePros.com http://www.namepros.com/web-hosting-discussion/582831-here-come-the-chargebacks.html

I had one earlier maybe about late December last year where a user claimed a chargeback on one of our VPS however about 3 months later I was reimbursed the chargeback amount doubled.

This was done by forwarding the billing records to PayPal including where the user even decided to contact Support for a support request!

Yesterday I've received another on one of our dedi servers. Now I want to hear your thoughts on chargebacks, how to deal with them, how many have you received, what sort of evidence do you provide etc.

p.s. I have also posted this on WHT although I wanted to here what the guys here at namepros whether they have any sort of opinion towards this

~ServerPoint~ · 05-14-2009, 03:10 AM

I believe if you are able to prove to the payment gateway that the service was delivered you can be patient and they will cancel it. But if you accept the fraud order I believe that in this case nothing can be done

SiberForum · 05-15-2009, 04:32 AM

Thats truth. We had number of the fraud orders last summer

-REECE- · 05-15-2009, 05:29 AM

It might be worth looking into requiring payment by MassPay or making clients sign a contract so that you have solid proof to show PayPal.

I don't do web hosting, however I do buy and sell domains and it's unfortunate that PayPal has become the standard way of paying for things online, seeing as it's so easy to chargeback. Personally, I would never accept regular PayPal for any sizable amount of money without a contract unless I know and trust the person. I ate a $300+ chargeback a couple years ago courtesy of PayPal -- they don't seem to care how much business you do through them and will pretty much always side with the buyer unless you have solid proof. Guilty until proven innocent...

Accurate · 05-15-2009, 08:38 AM

@REECE that would be true. Although going through many steps leads to a lot more administration work and most likely people would not sign up unless there was something VERY special.

I guess its business, and you must get used to it. PayPal's with Ebay, although they always make it sound like they help only YOU whether your the buyer/seller. A good selling point, however they would need some what so "slight" improvements.

SeanPreston · 05-18-2009, 01:51 AM

The best thing to do is provide PayPal with a VERY lengthy reason why they shouldnt give the user the cash, along with a fre screenshots.

This usually makes me win

Sean

rumsfo · 05-18-2009, 03:12 AM

From the so regions people do not have possibility to pay with paypal. So assuming that you need to have another ways. I like 2checkout

Accurate · 05-18-2009, 07:40 AM

We have never used 2checkout as I have heard such companies are now choosing to not use 2checkout for various reasons.

We have provided a review to PayPal, however like our last chargeback I expect it may take multiple months. PayPal has although told me 30 days.

JetWash · 05-18-2009, 07:48 AM

Disputes with PayPal can be a pain, Though in most cases they will refund the seller in which we have noticed alot, Especially with Physical Goods. Digital Goods may vary depending on what it is.

2CO We use and we have had no issues with it at all

Not to be to use.

Accurate · 05-19-2009, 05:04 AM

With physical goods there's hard evidence. Digital goods, although this was the rental of an entire server it may really depend.

The bandwidth usage/used is my main concern.

the_poet · 07-01-2009, 12:31 PM

Is it true that the risk of a chargeback can be avoided if payment is made via balance?

Accurate · 07-02-2009, 01:49 AM

It is better to only accept Verified PayPal users is what we have found.

Un-verified are the ones that cause problems.

the_poet · 07-02-2009, 04:33 AM

How can you make sure that verified members won't use chargebacks? If I don't remember wrongly, in order to verify your account, PayPal charges you a small sum from your credit card and then gives it back to you. It's a process anyone can do, including the bad intentioned guys.

.Andy · 07-03-2009, 12:07 PM

You may want to invest in some fraud monitoring software we have a plugin for client exerc that works like a charm. When I Worked for a diffent host that does dedi sales they had a phone verification on the order.

alemcherry · 07-06-2009, 04:51 AM

With any sort of credit card payments, naturally you should expect some charge backs. Frauds etc. can be minimized by IP checking, actual verification by phone etc.

Otherwise it is necessary to keep track of proofs, wherever possible.

IMEZI · 07-31-2009, 06:28 AM

verified paypal is no longer guarante since people could buy VCC for 7$ and verified their pp account with it.

~ServerPoint~ · 07-31-2009, 07:52 AM

Originally Posted by p3durungan

verified paypal is no longer guarante since people could buy VCC for 7$ and verified their pp account with it.

and get banned by paypal and lose the money. So that could be verified for the small period of time only

05-14-2009, 01:49 AM	THREAD STARTER #1 (permalink)
Accurate NamePros Regular Join Date: Jun 2008 Posts: 583	Here come the chargebacks. Well, I've heard that Web Hosting business has become quite the area where PayPal chargebacks occur the most. ????: NamePros.com http://www.namepros.com/web-hosting-discussion/582831-here-come-the-chargebacks.html I had one earlier maybe about late December last year where a user claimed a chargeback on one of our VPS however about 3 months later I was reimbursed the chargeback amount doubled. This was done by forwarding the billing records to PayPal including where the user even decided to contact Support for a support request! Yesterday I've received another on one of our dedi servers. Now I want to hear your thoughts on chargebacks, how to deal with them, how many have you received, what sort of evidence do you provide etc. p.s. I have also posted this on WHT although I wanted to here what the guys here at namepros whether they have any sort of opinion towards this

05-14-2009, 03:10 AM	#2 (permalink)
~ServerPoint~ NamePros Regular Join Date: Nov 2007 Posts: 990	I believe if you are able to prove to the payment gateway that the service was delivered you can be patient and they will cancel it. But if you accept the fraud order I believe that in this case nothing can be done __________________ ServerPoint.com - a true hosting company offering online presence solutions since 1998 Web Hosting, colocation, dedicated servers, Virtual Private Server (VPS) hosting *Wholly owned multi homed network, servers and facilities*

05-15-2009, 04:32 AM	#3 (permalink)
SiberForum Senior Member Join Date: Dec 2007 Posts: 1,456	Thats truth. We had number of the fraud orders last summer __________________ Canadian .CA Domain Name Registration and Web Site Hosting Sibername.com is an ICANN/CIRA/Eurid Accredited Registrar.

05-18-2009, 03:12 AM	#7 (permalink)
rumsfo NamePros Regular Join Date: Apr 2009 Posts: 212	From the so regions people do not have possibility to pay with paypal. So assuming that you need to have another ways. I like 2checkout __________________ ?Want FREE Windows 7 UE or Zune HD 32GB? - We will give it! learn more how to get it... ASPnix Web Hosting - ASP.NET, MS SQL, AJAX, Hyper-V Microsoft Hosting and Virtualization

05-18-2009, 07:48 AM	#9 (permalink)
JetWash New Member Join Date: May 2009 Posts: 3	Disputes with PayPal can be a pain, Though in most cases they will refund the seller in which we have noticed alot, Especially with Physical Goods. Digital Goods may vary depending on what it is. 2CO We use and we have had no issues with it at all Not to be to use. __________________ █ LiteSpeed Powered Virtual Isolation Hosting █ 99.9% Uptime - Daily Offsite Backups @ aTecHosting █ 24/7 Technical Support █ Also see our very own Tech Forum

05-15-2009, 05:29 AM	#4 (permalink)
-REECE- NamePros Expert Join Date: Sep 2004 Location: Canada Posts: 8,996	It might be worth looking into requiring payment by MassPay or making clients sign a contract so that you have solid proof to show PayPal. I don't do web hosting, however I do buy and sell domains and it's unfortunate that PayPal has become the standard way of paying for things online, seeing as it's so easy to chargeback. Personally, I would never accept regular PayPal for any sizable amount of money without a contract unless I know and trust the person. I ate a $300+ chargeback a couple years ago courtesy of PayPal -- they don't seem to care how much business you do through them and will pretty much always side with the buyer unless you have solid proof. Guilty until proven innocent...

05-15-2009, 08:38 AM	THREAD STARTER #5 (permalink)
Accurate NamePros Regular Join Date: Jun 2008 Posts: 583	@REECE that would be true. Although going through many steps leads to a lot more administration work and most likely people would not sign up unless there was something VERY special. I guess its business, and you must get used to it. PayPal's with Ebay, although they always make it sound like they help only YOU whether your the buyer/seller. A good selling point, however they would need some what so "slight" improvements.

05-18-2009, 01:51 AM	#6 (permalink)
SeanPreston Senior Member Join Date: Nov 2005 Location: UK Posts: 1,278	The best thing to do is provide PayPal with a VERY lengthy reason why they shouldnt give the user the cash, along with a fre screenshots. This usually makes me win Sean

05-18-2009, 07:40 AM	THREAD STARTER #8 (permalink)
Accurate NamePros Regular Join Date: Jun 2008 Posts: 583	We have never used 2checkout as I have heard such companies are now choosing to not use 2checkout for various reasons. We have provided a review to PayPal, however like our last chargeback I expect it may take multiple months. PayPal has although told me 30 days.

05-19-2009, 05:04 AM	THREAD STARTER #10 (permalink)
Accurate NamePros Regular Join Date: Jun 2008 Posts: 583	With physical goods there's hard evidence. Digital goods, although this was the rental of an entire server it may really depend. The bandwidth usage/used is my main concern.

07-01-2009, 12:31 PM	#11 (permalink)
the_poet Senior Member Join Date: Apr 2009 Location: The Web Posts: 4,412 Follow @ThePoet82	Is it true that the risk of a chargeback can be avoided if payment is made via balance? __________________ [ Remix.co.in for sale! \| Superpremium .SO domains for sale \| High Quality .CO domains for sale ] [ Great .com domains for sale! \| .IN domains for just $3 each! ]

07-02-2009, 01:49 AM	THREAD STARTER #12 (permalink)
Accurate NamePros Regular Join Date: Jun 2008 Posts: 583	It is better to only accept Verified PayPal users is what we have found. Un-verified are the ones that cause problems.

07-02-2009, 04:33 AM	#13 (permalink)
the_poet Senior Member Join Date: Apr 2009 Location: The Web Posts: 4,412 Follow @ThePoet82	How can you make sure that verified members won't use chargebacks? If I don't remember wrongly, in order to verify your account, PayPal charges you a small sum from your credit card and then gives it back to you. It's a process anyone can do, including the bad intentioned guys. __________________ [ Remix.co.in for sale! \| Superpremium .SO domains for sale \| High Quality .CO domains for sale ] [ Great .com domains for sale! \| .IN domains for just $3 each! ] Last edited by the_poet; 07-02-2009 at 04:37 AM.

07-03-2009, 12:07 PM	#14 (permalink)
.Andy NamePros Regular Join Date: Feb 2007 Posts: 664	You may want to invest in some fraud monitoring software we have a plugin for client exerc that works like a charm. When I Worked for a diffent host that does dedi sales they had a phone verification on the order.

07-06-2009, 04:51 AM	#15 (permalink)
alemcherry NamePros Member Join Date: May 2008 Posts: 79	With any sort of credit card payments, naturally you should expect some charge backs. Frauds etc. can be minimized by IP checking, actual verification by phone etc. Otherwise it is necessary to keep track of proofs, wherever possible. __________________ Hosting Discounts: Bluehost Discount $3.95 /mo, Hostgator Discount 20% off and more..

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07-31-2009, 06:28 AM	#16 (permalink)
IMEZI Senior Member Join Date: Sep 2008 Location: IMEZI.COM Posts: 1,597	verified paypal is no longer guarante since people could buy VCC for 7$ and verified their pp account with it. __________________ WTS Amazon Minisite : Whois & IP check - Best Choice Printer - Cooking Recipe - Weight Loss Programme