Safeguard urself from PayPal chargeback?

[champ_rock]

hi

i was wondering how do u safeguard urself against paypal chargebacks. ?

here is the scenario:
u got the payment, u push the domain, the buyer files a dispute and paypal asks u to submit the proofs and defend urself

my question is what proofs do u usually maintain with urself that the domain was indeed transfered so that paypal people can believe it? paypal does not know the past whois of the domain so u cannot say that the whois has changed.

One suggestion i recieved was to have a 3 days time interval after recieving the funds so that the buyer cannot do a chargeback afterward. but this is also not foolproof and we would still need proofs of domain transfer if the buyer files a claim after that time

your opinions on this matter will be appreciated

 

[Earthian]

The whole PayPal chargeback thing is a rather "difficult" situation since many banks can allow a credit card chargeback (and consecutively PayPal a freeze on your funds and/or account) even up to 60 days after the purchase (charge on the card) ... some even more than that (I've heard about 90 , but don't know if it true or if it can be surpassed)









If you transfer internally (push) at GoDaddy (and accordingly at other registrars) a good idea might be to ask from the buyer to write his/her email address for the push AND the domain name purchased in the notes of the PayPal payment ...

after a transfer is completed at GoDaddy (and at other registrars , logically) , GoDaddy sends an email (not the initiation of transfer email , the one after it) that states the domains that have been transferred and the email of the new registrant (in the title) ...









a good idea is to keep all the PayPal payment emails ... a simple folder in your email account could keep them organized and easily accessible ...

also keep all the completed transfers emails from GoDaddy ...









now ...

if PayPal asks for proof of transfer , you can forward them the two emails ...

the PayPal payment's notes will prove the payment was for the domain in question and the email of the buyer ...

the GoDaddy completed-transfer email will prove the domains were actually transferred to that email address and that the buyer accepted them ... :bingo:









I haven't tested this method since noone tried a chargeback ... but I keep those 2 emails in case I need some proof in the future ...

As you can understand a safer method would be Escrow.com (but mostly used for more expensive domains) ...

Lastly ... it is not a foolproof method ...

for example , I don't know what PayPal would do if the card was stolen ... if it "bulges" to the bank chargeback (I don't know their agreement regarding this) , they probably gonna take the money from your account ...

but it can probably be used in a "sneaky" chargeback from the legitimate card owner (PayPal , logically , won't bulge and the bank will void the chargeback) ...

​

 

[champ_rock]

thanks. keeping those emails and forwarding them is i think easily forgeable. everyone can edit any email from the forward button. its like sending a plain text acknowledgement.

i think something more conclusive would be more beneficial.

 

[leede]

agreed on guys,
in conclusion, more emails in hand ==> more safety and more proofs to protect myself.
My friends tell me to print a hardcopy of emails with the printer.

 

[Earthian]

even though forwarded emails can be forged ... if you keep those emails you have proof in your hands that the payment was for that specific domain(s) and that the transfer did occur ... also, with the timestamps , it would be easier to trace the original emails in the respective companies' databases ...









I think PayPal would probably be convinced with those because ...

a. regarding the PayPal email , they have it in their database and they can easily compare it ...

b. in case they don't accept the GoDaddy email , it would be easier (with the exact timestamp) to ask a GoDaddy customer service agent to send an email verifying the transfer , the domains , and the new registrant's email ... and they probably can presume that you can do that ...

c. if they don't accept the GoDaddy email , they might be able to contact GoDaddy regarding the transfer , probably after you authorize GoDaddy to send the information regarding that specific transaction ... the two companies have been working together for many years now and probably have handled many similar cases ... they probably know you would not risk your whole PayPal account over a forged email that can be fairly easily verified ... the exact timestamp might make the verification easier ...









again , as I said , it is not foolproof ... but it might be effective or at least useful ...

​

 

[champ_rock]

the question is do paypal take this much trouble to contact godaddy support and then verify for themselves?? i doubt

 

[JoeCanadian]

Your best protection - is if possible - know your buyer - this can be done through Buyer feedback either here or on NamePros. I've never lost money either here or on NamePros through a PayPal chargeback and that's probably over a few hundred transactions. And if the amount of money is significant use some form of escrow.

 

[champ_rock]

yes but sometimes the buyer has no feedback at all and i believe it would be unfair to simply refuse to deal with a newbie.

therefore i usually prefer to do transaction in np$ if the amount is small because there is no chance of any chargeback and the buyer also feels safe . if not in np$ then i prefer a 3 days holding period as i mentioned.

i have also not had a chargeback till now but i was just wondering how secure i was if a chargeback happened one fine day

 

[Earthian]

I don't think they will , at first , contact GoDaddy but ...

a. if you have a chance to respond after they don't accept the email , with the timestamp you can more easily contact a GoDaddy CS agent and ask him/her to send an email to PayPal to verify the transaction ...

b. if you don't have a chance to respond (/appeal) after the initial response to the dispute ... with the timestamp you can more easily ask a GoDaddy CS agent to send an email to PayPal to verify the transaction ... when you send your initial respond to the dispute ...

but I don't think it will be needed because they probably can presume that you will contact a GoDaddy CS agent if they don't accept the email ... or ... that you would not risk your account over an easily verifiable email ...









PeterX - "analyzing" the buyer is a must with domain transactions and internet transactions in general ...

 

[ApeXX]

thanks. keeping those emails and forwarding them is i think easily forgeable. everyone can edit any email from the forward button. its like sending a plain text acknowledgement.

i think something more conclusive would be more beneficial.

I'm pretty sure that for this reason, Paypal denies all fraudulent chargeback coverage as there really isn't any concrete digital proof.

 

[Humdizzy]

I usually just drain my account.

 

[ApeXX]

I usually just drain my account.

I have a sneaky feeling they would still try and charge your credit card or bank account.

 

[bizwiz]

It's hard to prevent charge backs but an alternative is to use a payment processor that does not allow charge backs like e-gold.