How to avoid chargebacks?

[DJ-Sound]

I understand the ecommerce businesses get alot of chargebacks because the huge number of con artists online and the ease that the credit card companies allow them to steal easly. However providing services, how can you avoid chargebacks?

I just got my second chargeback email from paypal, the first was my mistake, I sold a item on ebay and knew in advanced that its common place to get things stolen so I was out $300. But this second one was for a service (marketing) and of course was done right and not deciving in anyway and now I'm losing more money.

Is there any possible way to avoid chargebacks when providing a service?

 

[hanz]

All you can do is use payment system that doesn't allow chargebacks. There are MoneyBookers, E-Gold and some more, but with PayPal you can't really do anything

 

[killaklown]

isnt there a way to not have chargebacks? Runescape.com uses paypal and allows verified and unverified payments, but they do something so that you can not chargeback (at least thats what i think) you should contact them and ask what they do to remove chargebacks.

 

[DJ-Sound]

There is no way to not have chargebacks, every bank and credit card company allows the buyer to disbute charges. I'm not talking about paypal complaints or disbutes, I'm talking real chargebacks.

 

[labrocca]

Well you really only have 1 choice with paypal and that's to make the sale something tangible that you ship out.

So even if you send out a CD with the software as well as allow a download...you are shipping something tangible. Make the sale for the CD. It costs you only about $1-$2 to ship via USPS Media Mail. I would assume on $300 sales you want to be protected.

This is the ONLY way to comply with their guarantee. Also note you must ship ONLY to a confirmed address in the USA to get the seller guarantee. Also tracking must be enabled. If you use Stamps.com I was sending out with tracking for under $1.75 per package. It was dirt cheap. Even if there is a chargeback paypals policy covers you. I had a few $200-$500 attempts to rip me off. It takes about 2-4 weeks for them to give you the funds but they eventually do as it's their TOS. I also think that over a certain dollar amount ($250 or $300) they require signature for the shipment. Which is easy enough to add on as well for big sales.

This is all part of protecting yourself and in the long run you have to decide what your fraud percentage is for loss vs the cost of protecting yourself. Why spend $300 a month plus the extra time to protect yourself when you only get scammed every 6-8 weeks. In that scenario you just have to bite the bullet. Do what makes economic sense.

 

[Joey]

Yes, I agree, I've had alot of problems with non-tangible goods, PayPal automatically closes these complaints.

 

[labrocca]

Yes, I agree, I've had alot of problems with non-tangible goods, PayPal automatically closes these complaints.

Didn't you read my response? This is why you sell your software via a CD to make it tangible. You must word your auction carefully.

Great software package in CD format which will be mailed to you via USPS with tracking to avoid fraud. As a bonus we can also give you a free download like to our product.

 

[Cobalt]

Ok, I have a question. So if someone leaves you a chargeback or opens up an investigation and paypal deverts it right away, does that mean they made a false case or something?

 

[DJ-Sound]

Ok, I have a question. So if someone leaves you a chargeback or opens up an investigation and paypal deverts it right away, does that mean they made a false case or something?

not really, paypal is just covering theirsleves from losing money. They'll supposly give the money back in a few months if they win the disbute with the bank or credit card company the chargeback came from.

 

[lordzeus]

what's a chargeback?

 

[DJ-Sound]

when a scammed buyer or a con artist calls their bank or credit card company and disbute a charge on their account. This safty feature is commonly abused and hurts many small merchants that can't afford to have $xxxx on hold while the company investigates the disbute.

 

[Peter]

when a scammed buyer or a con artist calls their bank or credit card company and disbute a charge on their account.

Not neccessarily. A chargeback is a normal safeguard to stop fraudulent activity with a credit card. It is not just scammers who use it. If someone buys an item, it never arrives and the retailer refuses to do a refund or goes missing are you a scammer for doing a chargeback?

Guess not!

 

[digidogstudios]

hey trhere is always the option of tracking them down adn kicking their ass :D

 

[DJ-Sound]

Not neccessarily. A chargeback is a normal safeguard to stop fraudulent activity with a credit card. It is not just scammers who use it. If someone buys an item, it never arrives and the retailer refuses to do a refund or goes missing are you a scammer for doing a chargeback?

Guess not!

I agree, and thats why I said either a scammed buyer(meaning buyer was the victim) or con artist..

 

[Peter]

sorry yes I mis read what you wrote.