stupid paypal chargeback

[flybuzz]

Yes, it has finally happened to me. Sold a portfolio on ebay, got paid, pushed domains and 2 weeks later got a credit card charge back by the buyer. Anyone won case like this? Buyer has 0 feedback.... :veryangry

 

[hugegrowth]

There have been other threads like this on dnforum, don't know where they are though. Someone here even had a contact at PayPal that helped out. The key with selling domains is to send an invoice for payment through paypal for 'computer goods to be delivered', then you have a receipt. Somebody here can probably explain this better than me, but surely file a complaint with Paypal to start things off... good luck

 

[David G]

From what I have always been told (and first-hand experience too) a receipt is only valid on physical products delivered by mail or carrier, with proof of delivery and signature needed too.

If it's an order for any electronically delivered product (domains, websites, software, etc) and also a credit card chargeback seller basically automatically loses the case. However, if buyer paid used PayPal cash funds the seller wins the case.

 

[Rockefeller]

Alright, trader is right. If they paid via credit card you will lose. I have won cases like this before. What you need to do is go to the store and pick up a small box. Get his address from the whois and send the box to him. Its going to cost you about 10 dollars to send it out. Make sure that you get signature confirmation and a tracking number on the package.

More than likely the deadbeat will accept the package because he won't know who its from. Once the package is accepted you will be able to login to USPS and get the signature from the website as well as the tracking number. This will prove that you delievered the "domains" and you will win the dispute.

Good luck.

 

[Domagon]

PayPal TOS says they will NOT accept signature / tracking number alone for purchases over $250 USD.

For amounts over $250, additional documentation, such as a written contract may be required ... and in any event, PayPal has a year cap of something like $5,000 (I don't recall the exact amount); intangible goods, like domain names, are not entitled to any protection ... as in $0!

And finally, many seller protection provisions are limited to transactions that occur in certain select countries - if either one or more of the parties is outside those areas, then PayPal seller protection may not apply at all.

Your best bet is recovering the domain, if you still can - it really depends on the registrar, and your contacts with them; may take some communications on a backchannel so to speak to get it back.

With that said, if the amount in question is relatively small to you, then it may better to chalk it up as experience (ie. screening buyers better in the future) and move on.

Good luck.

Ron

 

[flybuzz]

It's around $400, I have already replied the best that I can inside the paypal reply box. I have also contacted godaddy regarding this issue as that is where most of my domains at. Not a devastating amount, but who likes to lose $400 to scammers. I hope I can either keep the money or get my domains back....

 

[mjnels]

domagon summed it up pretty well.... plus there is more too be said.. but just know to check every rule.. paypal is insane, i still use it but they are insane if you accept a lot of payments.... its almost like the losing lottery you enter yourself in..

 

[Jacksplat]

paypal doesnt protect you against non-tangibles.

last year i lost mid xxx to an excl member here, i sent the money. i then convinced him to give me back my money, which he did through paypal. a week later he tried to get the money back through paypals system and couldnt do it. I phoned them immediately. But I believe it may have something to do with the way i describe each transaction when using paypals services.

I usually call it a service, describing it as an aquisition of a domain and make mention of where its located with my username there. I get specific about the whole thing.

i can only suggest people take time in the description


good luck

 

[David G]

I have also contacted godaddy regarding this issue..

GoDaddy will do absolutely nothing except tell you to go to court.

 

[Ehsan]

well i used to be a big fan of paypal but then i got to knew of charge backs and account limiting it just SUCKS i will never use it ever !

 

[GT Web]

well i used to be a big fan of paypal but then i got to knew of charge backs and account limiting it just SUCKS i will never use it ever !

Have fun, there are no feasible alternatives to Paypal at this time...

 

[typist]

Paypal isn't always easy to deal with...

 

[Ehsan]

Well lets just hope someone else comes up with a paypal alternative which is as honest as moniker lol

 

[italiandragon]

are you basically telling me that any time people pay by credit card through PayPal I risk to have a chargeback?

 

[Domagon]

Yes, if you are selling intangible goods, such as domain names.

For tangible goods, the risk is still very high, but can be reduced somewhat for low dollar items (ie. under $250) by shipping to the person's billing address, shipping packages with tracking, and limited your sales to people in select countries.

What makes PayPal particularly risky in regards to credit cards is the seller is provided only limited information regarding the nature of the underlying credit card transaction...

Ie. IP address, number of attempts, AVS / CVV results, card issuer, etc information is not revealed to sellers.

And furthermore a credit card merchant has various legal rights / recourse that a PayPal seller does not.

Ron

 

[italiandragon]

so what can we do to limit the risk of chargebacks?

thank you

 

[whydna]

Paypal has its flaws, but it is safe if you use precaution. Don't accept large ammounts of money from a credit card, make sure the money is from their account. Also, for very large ammounts, use escrow.

 

[Rockefeller]

Is there a way to block cc payments through Paypal?

 

[italiandragon]

Is there a way to block cc payments through Paypal?

well......sort of:


use a PayPal basic account which does not accept cc payments unles you upgrade to a Premier account.


I have a crazy idea maybe:

what does happen if after the payment I close the PayPal account sending the amount to another account or withdrawing it? If the buyer then makes a chargeback days later , what would happen?

 

[flybuzz]

I think paypal will attempt to get the money from your checking account, if they can't get it, they might block you from ever use paypal again. By the way, I got a reply back from godaddy saying sorry we can't help you. Go ask ebay for help. What a pathetic reply.

I ususally do pretty good job with ebay transactions, but the buyer with 0 feedback jumped in within the last 10 seconds and stole the auction. (I thought I had turned on block buyer with 0 feedback, not sure how it went through) Then I received a payment within 10 min after the auction ends. Also the buyer is a woman with a US address. I guess I really let my guard down.....