Paypal & Chargeback Fees!

[domainAddict]

Do I understand it right, that Paypal charges you only $10 chargeback processing fee if your costumer does one, while other third party credit card processors charge you up to $35? And even $10 can be waived if you participate in their "paypal preffered" program (ebay thing)? Heres the info from their page:

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Protection Policies - Seller Protection Policy
What is the Chargeback Settlement Fee?

To cover the cost of processing chargebacks, PayPal assesses a $10 fee to sellers who are determined to be at fault for credit card payment chargebacks. The $10 fee will be waived in those cases where the sellers have fulfilled all of the requirements of PayPal's Seller Protection Policy. The $10 fee will also be waived for all sellers participating in our PayPal Preferred program.
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You can see this HERE

Any ideas? Have I misunderstood something? Thanks!

 

[DomainPairs]

The big thing that they don't tell you is that the buyer does the chargeback and keeps the goods. You lose the goods, the money and $10 to Ebay. It was one of the increasing sources of fraud when I stopped using Ebay. Safest thing is to refuse to take cc funded payments.

 

[domainAddict]

Well yeah, but im thinking of using them for domain registration and hosting sales. And in this business you MUST be able to receive cc payments or else youre doomed..

Therefore, if I use 2checkout, they charge me $15-$35 for a chargeback, while they take only $10 or even nothing if I understand it right.. ??

 

[TexasFilly]

a "chargeback" can not be successfully conducted without a testimony from each side involved. Not all CB's applied for win, many times the merchant/seller wins.. it's all based on factual evidence. In regards to dn sales, it'de be pretty hard for a paypal user to win in a CB, when the DN seller has the "previous" owner records, and the "new ownership transfer records".. it'de be real hard for somone to CB this.. (is this the type of transaction your referr'ing too)?

 

[DomainPairs]

I thought one of the big name registrars shut down a service because of excessive chargebacks - mostly "buyer remorse".

Also if you are non-american you have no rights whatsoever, you give paypal access to your bank account and have to set up a web site to try to pressure them into giving back your money.

 

[domainAddict]

People pay you with their credit card for a product/service, through paypals system. So if I would be offering web hosting, or normal domain registrations, they would pay me for this, through the paypal. But lets say the credit card has been stolen, or its owner just wants a "free ride", he can file a chargeback at his bank. As far as Im aware, they always go through.. It selers responsability to try to avoid them, if you dont suceed, then its your responsability to accept the consequences. At these consequences can be a real problem, and can cost you lots of money.. I though you all understand what I mean.. Thanks for your feedback!

 

[domainAddict]

DomainPairs: I have no idea what you mean by that.. Could you be more specific? thanks