- Jul 29, 2008
- 1,169
- 463
Anyone who has sold digital products online (specifically through paypal), has probably experienced chargeback fraud.
This is a serious problem for me, because I go ahead and pay my affiliate their earned commissions a month or so after the sale is made, and then 2 months down the road I get an "unauthorized transaction" dispute in paypal, of which I can do NOTHING as a seller. Not only do I lose the money I made from the original sale, but now i've lost another 50% that i paid to my affiliate.
Paypal has NO way to guard against this kind of fraud. The seller almost always looses the case.
One thing I've noticed is that paypal offers "seller protection", but NOT for digital goods. It has to be a physical product.
So, what do you guys think of sending some kind of "certificate" via certified mail (with tracking, etc) with every product sale? I could then use this tracking information in the chargeback dispute, and claim that it as a physical product, allowing me to qualify for seller protection.
Any thoughts?
-Eric
This is a serious problem for me, because I go ahead and pay my affiliate their earned commissions a month or so after the sale is made, and then 2 months down the road I get an "unauthorized transaction" dispute in paypal, of which I can do NOTHING as a seller. Not only do I lose the money I made from the original sale, but now i've lost another 50% that i paid to my affiliate.
Paypal has NO way to guard against this kind of fraud. The seller almost always looses the case.
One thing I've noticed is that paypal offers "seller protection", but NOT for digital goods. It has to be a physical product.
So, what do you guys think of sending some kind of "certificate" via certified mail (with tracking, etc) with every product sale? I could then use this tracking information in the chargeback dispute, and claim that it as a physical product, allowing me to qualify for seller protection.
Any thoughts?
-Eric