Here come the chargebacks.

[Accurate]

Well, I've heard that Web Hosting business has become quite the area where PayPal chargebacks occur the most.

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~]

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]

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

 

[-REECE-]

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]

@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]

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]

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]

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]

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]

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]

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

 

[Accurate]

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

Un-verified are the ones that cause problems.

 

[the_poet]

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]

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]

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]

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

 

[~ServerPoint~]

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