Avoiding charge backs for delivering services?

Discussion in 'Business & Tax Advice' started by BossBas, Feb 19, 2013.

  1. BossBas

    BossBas Newbie

    Feb 4, 2013
    Likes Received:
    I have a few female friends who want to do interesting things in front of a cam, but don't want to sign up on sites like Live Jasmin. They rather ask less money and keep more themselves. Now I want to help them out for a small commission setting up the 'payment infrastructure'. I have been researching a lot and found out that there is a lot of problems with the 'Pay Pal chargeback'. In other words, my 'artists' will perform a great service and will be paid up front and possibly a par of it after. Since a service is not registered, because its done by Skype or whatever, they can probably just do a chargeback and keep the money to themselves, even when they got their service. How can this be avoided? Are there other virtual money accounts that do not have this feature, or have protection for the one delivering the service? I don't think a small contract would help because it can easily be faked.

    What payment system sounds best for delivering a non tangible service and not getting screwed over? Or is there nothing I can really do and just become an affiliate of Live Jasmin and send them there?

    Thank you for reading and possible help!
  2. ContentLockPro

    ContentLockPro Power Member

    Nov 7, 2012
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    Chargebacks are always an issue when selling services, be it through PayPal or not. Whenever the customer uses credit card for the payment, they can file a chargeback and the payment provider will cash it in from you. All you can do really is make sure your service is of high quality and that the customer recognises the charge on their CC statement.

    Alternatively, you can indeed use a payment processor that doesn't support chargebacks (such as Libery Reserve), but at the same time you would be missing out on all credit card payments, which I'm sure would be a huge percentage of your business as not many people out there use Libery Reserve.