Dealing With Virtual Item PayPal Charge-backs?

Benjibenji1 · Nov 26, 2017

Hello
this month i got and a charge-back as i'm the seller ,the but open a case in PayPal and he said only he didn't receive the service ,but the service was completed i send him message back and he didn't answer and the second day i sent another message but no answer and all of this in paypal.
after 20 day he escalate this case to claim ,now i don't know what i should do ,because i read that paypal always with the buyer .

MatthewGraham · Nov 27, 2017

Benjibenji1 said:
because i read that paypal always with the buyer .

For intangibles, PayPal technically doesn't side with anyone:

If the buyer files a dispute on PayPal, PayPal will do nothing and you will keep the money
If the buyer files a chargeback through their financial institution, PayPal will do nothing and the financial institution will therefore win by default and the transaction will be reversed

If you want to dispute a chargeback for intangiable goods or services, it may be possible to take the buyer to small claims court or to otherwise take legal action. You would have to do that directly with the buyer and courts, which is in general going to be more of a pain in the ass than writing it off as a business expense.

cbcbcb · Nov 28, 2017

Provide them as much information as you got, so including screenshots of conversations between both of you. If you really don't know what to do, you can also call PayPal. They always try to solve the case the best way, no matter who will win the dispute.

MatthewGraham · Nov 28, 2017

cbcbcb said:
Provide them as much information as you got, so including screenshots of conversations between both of you. If you really don't know what to do, you can also call PayPal. They always try to solve the case the best way, no matter who will win the dispute.

Not for intangibles. You could post ASCII art of a dog instead of real case information and it will end the same.

Deleted member 657006 · Nov 29, 2017

but that the whole idea of using paypal in your business you dont own the money untill the client is happy .

unfortunately using paypal the client got x amount days to think he satisfied , that why many dont use paypal becouse of the protection and that also why ppl love paypal becouse it got protection .

so you have to learn to run your business knowing at any time a client might dispute a payment and win .

there is a way to solve all the problams and that clearly telling the client via the product advert there no refund no matter what once sold it sold....

ContentExpert · Nov 29, 2017

PayPal does not provide "buyer protection" on intangible sales.

Call PayPal, explain that nothing physical was involved/sold and that the sale consisted of a service, nothing tangible.

So long as he didn't lodge a dispute with his banking institution and created the dispute thru PayPal (considering that it's now a claim), PayPal will close the dispute in your favor.

Calling them will immensely help to expedite the matter (trust me).

Hope you're able to retrieve the payment for the work you did!

Deleted member 657006 · Nov 29, 2017

if the client tell paypal that the services was not as advertised he will win hands down.

dont need buyers protection to win a case just aginst the advert can win also

the advert has to have written info to save your arse ...

ContentExpert said:
PayPal does not provide "buyer protection" on intangible sales.

Call PayPal, explain that nothing physical was involved/sold and that the sale consisted of a service, nothing tangible.

So long as he didn't lodge a dispute with his banking institution and created the dispute thru PayPal (considering that it's now a claim), PayPal will close the dispute in your favor.

Calling them will immensely help to expedite the matter (trust me).

Hope you're able to retrieve the payment for the work you did!

ilovetobun69 · Nov 29, 2017

ContentExpert said:
PayPal does not provide "buyer protection" on intangible sales.

Call PayPal, explain that nothing physical was involved/sold and that the sale consisted of a service, nothing tangible.

So long as he didn't lodge a dispute with his banking institution and created the dispute thru PayPal (considering that it's now a claim), PayPal will close the dispute in your favor.

Calling them will immensely help to expedite the matter (trust me).

Hope you're able to retrieve the payment for the work you did!

yes they do now .

MatthewGraham · Nov 29, 2017

If there is still any confusion on this issue, reread my original post:

For intangibles, PayPal technically doesn't side with anyone:

If the buyer files a dispute on PayPal, PayPal will do nothing and you will keep the money

If the buyer files a chargeback through their financial institution, PayPal will do nothing and the financial institution will therefore win by default and the transaction will be reversed

If you want to dispute a chargeback for intangiable goods or services, it may be possible to take the buyer to small claims court or to otherwise take legal action. You would have to do that directly with the buyer and courts, which is in general going to be more of a pain in the ass than writing it off as a business expense.

Source: Selling a shitton of intangiable goods on PayPal. Also, the PayPal terms of service.

riz_a · Nov 29, 2017

Many sellers offering intangible goods now require a phone call with the buyer before fulfilling the order. It's not bulletproof but it can help deter some scammers. It's something you could maybe consider.

PayPal is always looking for ways to make shopping safer. Buyers purchasing intangible goods (such as digital goods) and services can now be covered by Buyer Protection, in the same way as they are for physical items. If a buyer claims they haven’t received an eligible item or service or it was not as described, they can open a claim which PayPal will review. We want buyers to feel safe no matter what they’re buying.

source: https://www.paypal.com/uk/webapps/mpp/merchant-intangibles-update

Holyvinci · Nov 30, 2017

1. You can request his/her phone number for verification but there are apps to cloak real phone number. Bear that in mind.

2. If you sell digital services like power leveling etc, take a "before" and "after screenshot" and email it to him. make sure you upload it to his account on your website if you have one.

3. For CDKeys, give him a link that is churned directly from your website for him to download to retrieve the CDkeys. It will show date/time stamp.

Not 100% foolproof but it is worth a try

ilovetobun69 · Nov 30, 2017

Holyvinci said:
1. You can request his/her phone number for verification but there are apps to cloak real phone number. Bear that in mind.

2. If you sell digital services like power leveling etc, take a "before" and "after screenshot" and email it to him. make sure you upload it to his account on your website if you have one.

3. For CDKeys, give him a link that is churned directly from your website for him to download to retrieve the CDkeys. It will show date/time stamp.

Not 100% foolproof but it is worth a try

1. call them dont have them call you. Its best to ship the cd key to new buyers for "verify". I never lost once to a "unauthorized claim" doing this.
2. that wont work, if the buyer is a scammer he will pull that you broke the t.o.s of the game. All he has to do is say that you botted or hacked. wheres the proof you didnt?
3. if you don't have a aged account with a lot of orders, paypal will side with the buyer . The buyer could tell paypal that they never used it and they will always suspect the seller unless the buyer is a dumbass.

Dealing With Virtual Item PayPal Charge-backs?

Benjibenji1

Too many disputes, too many complaints

MatthewGraham

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cbcbcb

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MatthewGraham

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ContentExpert

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Deleted member 657006

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ilovetobun69

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