The usage of Paypal for the purchasing of Domains here.

[Manu]

I have been using paypal for sometime to purchase domains / receive money for domains other items.

I also got a few fraudlent orders via my own website (for a service) fraud is part of the online world we accept that.

Today after yet another fraudulent order via my website - a reversal was made by paypal, after the outcome (well them taking the money out) Paypal decides to charge ME a chargeback fee of $10.

Now its not a huge some of money. But I have had this problem before with paypal and they never used to take a chargeback fee. I have made a point to them that if I process on average of 1 fraudulent transaction every single day - who's responsibility is it? mine or paypal's, to check it is not a fraudulent transaction? I usually require all members to be a verified member so we know that the card they have is theirs.

What i'm trying to get at here is paypal is the most used payment processor here, what other payment ways could we intergrate with DNF as I will surely leave paypal now as I have my own worldpay account as well. It seems those that want to pay small amounts for domains and cant use paypal will be losing out here. (unless they use escrow and stump up the extra costs)

I just felt like getting that off my chest paypal just seems to like taking a huge per transaction fee on each sale and milking every situation possible.

 

[Mr Webname]

Are you saying that this fraudulent charge back was made by a member here?

 

[Spider]

Originally posted by Manu
I also got a few fraudlent orders via my own website (for a service)

 

[Mr Webname]

Yes I did read that - however if that is the ONLY source of problems I fail to see how that affects transactions here at DNF.

 

[Manu]

As spider pointed out, the transaction was via my own website and in no way affiliated with DNF.

I was simply saying if you do receive a chargeback from paypal now you will be hit with a $10 fee. (althou most payment processors do actually charge their members for a similar thing)

 

[bidawinner]

Manu..EVERY merchant processor is the same.. they are all scum..(it's still cheaper to absorb the fraud then pay for the proper security)
That said Paypal is a necessity and it''s best to develop a relationship with someone inside Paypal..a personal contact.. that will from time to waive these charges.

As you acknowledge fraud is a part of the online world; and as a Merchant you are not going to escape from it (or the associated fees) by running to a new processor.



I'm sure you already realize this and as you said just needed to vent

 

[Spider]

Manu, I would suggest incorporating the chargeback fee into the cost of the item you are selling. Bump the price up a little so the chargebacks dont hurt at all.

 

[Manu]

Thanks for the replies guys

Just so frustrating having to deal with such situations !

 

[seeker]

still cant figure why paypal would charge you!
Arent they getting comissions and fees for the purpose of security???

 

[Steen]

Its becuase every merchant charges people for thier merchant accounts of 3rd party proccesssing.

In most cases, the people who provide the accounts are charged $ or in time for these chargebacks.

Paypal is probably a certified merchant, direct with Mastercard, Visa etc, so I do not believe they get charged, at all or as much as an ISO.