How to avoid paypal chargeback ?

[bartoska]

Hello, im selling digital goods and Im looking for a way to avoid any chargeback from scammers

My customers pay with paypal as family and friend, I thought it was enough, but I read somewhere that they can still chargeback the payment with their credit card...

I thought about using bitcoin, but i will lose a lot of customers if I do that...
Do you know any way to avoid chargeback ?

 

[Captain_Nothing]

When doing digital services you have to expect a small percent to scam you, there is no way around it. You'd be surprised how many people don't actually open disputes though I probably do over 500+ transactions monthly and only 2 average will open a false dispute.

 

[Lupe God]

Create two accounts, receive funds in one and transfer to the other. If you get a chargeback you can't handle, ditch the account and open another "middleman" account.

 

[wano]

I've heard about PayPal actually banning accounts for taking payments through friends and family instead of goods and services.

If I were you I'd only accept payments through good and services OR get payments by sending invoices and including a no-chargeback policy in your terms & conditions section.

Also, if you own a website try including a no-chargeback note somewhere on your payments/prices page. If you ever do get a false-chargeback you can tell PayPal you provided the customer with their service (give PayPal proof) and mention your no-chargeback policy.

 

[islandman1010]

I've heard about PayPal actually banning accounts for taking payments through friends and family instead of goods and services.

If I were you I'd only accept payments through good and services OR get payments by sending invoices and including a no-chargeback policy in your terms & conditions section.

Also, if you own a website try including a no-chargeback note somewhere on your payments/prices page. If you ever do get a false-chargeback you can tell PayPal you provided the customer with their service (give PayPal proof) and mention your no-chargeback policy.

No such thing as a no charge back policy, it means nothing in law or in Paypal. Disputes raised by credit card companies against Paypal nearly always win. Paypal needs credit card companies for their own business to work so they rarely challenge a card company. Even payments from bank accounts can be claimed back. Most people just accept its part of selling online and there will be genuine chargebacks and false ones.

 

[jimbobo2779]

Create two accounts, receive funds in one and transfer to the other. If you get a chargeback you can't handle, ditch the account and open another "middleman" account.

If you are doing a reasonable amount of sales, which you should be aiming to do, then this is not really possible.

As others have said it is just one thing you have to accept when selling digitally online, try not to get too bogged down with it as it should be limited to a fairly low percentage of overall sales.

 

[Prensty]

PayPal is very hard to understand and hard to deal with it. I had lots of issues with them already and I never get any help from them.
So I think that no matter you'll do you will be still under the risk of losing something.

 

[MSRP]

Filter the customer based on geolocation (use maxmind). High risk fraud country only use crypto or use 3rd party payment provider such as 2co and stripe.

 

[hmike123]

If you're selling on a reputable marketplace, it shouldn't be an issue. Off your own website, not much you can do.

 

[Mi C]

You can't prevent much on friendly chargeback such as using family member credit card then change of mind.

However, for organized fraud such as stolen credit card, you can use the free service from FraudLabs Pro. It analyze online transactions for common patterns such as VPN, disposable email, high risk account, credit card blacklists etc.

The FraudLabs Pro API is available as add-on in more than 20 shopping carts. If you are using one of them, then you just need to install the add-on. Otherwise, you will need to integrate your backend with the API manually.

 

[djj34]

Dont use paypal There is many alternatives