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How to protect myself when selling digital goods using paypal?

Discussion in 'Making Money' started by eunicemartinez_21, Nov 11, 2015.

  1. eunicemartinez_21

    eunicemartinez_21 Jr. VIP Jr. VIP

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    I am thinking on launching a new project selling online game accounts which I played. I already researched the market and I am confident that I would make money here. But the thing that is holding me back from starting this project is "too much worrying" about scammers. I'll be using paypal for accepting payments and I am thinking isn't it so simple for scammers to possibly scam me? I mean they just buy an account, then I give them the account after they got the info they just simply file a dispute on paypal?

    This is my first time doing this if ever I'll do it. So I need some insights about this.

    Am I just being to paranoid? I mean there are just very few people who will likely do this and I may encounter 1 or 2 but that's it.

    Sites like Gate2shop can protect/help me from this problem?

    Or this kind of business is just plain pain in the ass and I should just abandon my idea and focus on what am I currently doing?

    Any advice is welcome.
     
    Last edited: Nov 11, 2015
  2. seoheroo

    seoheroo Junior Member

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    Dont worry too much about what ifs. There are millions of reasons to not do things. Just do it and gain experience and learn from it. Just do it.
     
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  3. davids355

    davids355 Jr. VIP Jr. VIP

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    You just have to accept that you will always get scammers but you have to have faith that most people are not scammers. So if you sell 100 digital products you might get 1-2 people that scam you. that means you make 98*$5-($5*2)=$480 or whatever it may be.

    In other words, not worth worrying over it too much.
     
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  4. eunicemartinez_21

    eunicemartinez_21 Jr. VIP Jr. VIP

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    This is not just small amount that's why I worry too much. This accounts ranges from $100-400. So one scam can hurt me. Well if it's an account that I got from brokering (buy low sell high) then I think I wouldn't be that much affected but one main problem that I forgot to include in my OP is I will be doing a midman service too.

    Where in I will invite players who'd like to sell their account to post their account for sale on my site then I'll just charge a percentage of how much their account worth.

    Simply, Other players post their account for sale in my site -> someone buys it send the money to my PP -> I contact the seller get the info and then send him the money minus my cut.

    Now if the buyer luckily was a scammer, he will charge a dispute and my paypal will be the one who will be charged.

    Any idea or workaround on this?
     
  5. lord1027

    lord1027 Elite Member

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    My advice, don't do it. I had some PSN Gift Cards which I wanted to sell. 2/3 people already went to their banks and claimed unauthorized transaction, paypal doesn't give a shit even though from our chats it was obvious it's nothing like that.

    One of them was through ebay, he has an old account there with a lot of positive feedback, he even gave me positive rating for transaction. One month later, he goes to the bank and claims unauthorized transaction, guess who lost his money? And his ebay account is still live.
    Trust me on this one, don't use paypal for digital goods unless it's a service which you can interrupt at any time. Paypal doesn't care and it's very easy to get scammed.
     
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  6. eunicemartinez_21

    eunicemartinez_21 Jr. VIP Jr. VIP

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    This is what I am really afraid of about PP concerning digital goods. They don't give a shit about seller and buyer always wins the disputes (from what I heard)

    I am also thinking of the gift option (I am not sure what it is called) in paypal wherein they can't file a chargeback/dispute. Is it possible to use? Cause I read about donation in PP and it is indicated there that you need to prove that you are doing a fund raising before you can withdraw the money that is donated. Basically the donation thing is not an option for me.
     
  7. musolini1111

    musolini1111 Registered Member

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    u cant protect yourself
     
  8. seoheroo

    seoheroo Junior Member

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    Why dont you use bitcoin or something. There are escrow services available for bitcoin related matters. You search it up and you will have to find a trusted one. That will fix your problem of charge backs.
     
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  9. eunicemartinez_21

    eunicemartinez_21 Jr. VIP Jr. VIP

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    Well based on my research about this market, PP is the #1 used method when buying accounts. And I don't have any idea how bitcoin works xD

    I will do research about this. Thanks for the advice
     
  10. Dresden

    Dresden Regular Member

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    I don't know if this would work for you but a long time ago I remember writing account information on a piece of paper and sending it to the buyer in an envelope. That way I had a tracking number and it was considered a physical good.
     
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  11. steroidjoe

    steroidjoe Registered Member

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    I'm not sure what safegaurds you imply or what market. If it may be a high return rate, I just create a no refund policy hence legal digital items have no refunds, and add a disclaimer. So you come back to PayPal with that disclaimer. However, reviews play a role in boosting sales for these things.
     
  12. grootgroot

    grootgroot Newbie

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    i thought digital goods are covered now by PP
     
  13. PBNSurprise

    PBNSurprise Jr. VIP Jr. VIP

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    There are scum bags who would do this? Anyway, OP I've heard of this site here: https://stripe.com/

    I've thought about selling some kind of digital service online and my first thought was Paypal, I'm not sure if stripe is just for mobile apps though, look into it and see if it'll help you (no I am not affiliated with them at all I just thought they might be a good alternative).

    If you've heard of people getting shafted out of money on Paypal I would seek out other payment alternatives, there are definitely options out there
     
  14. lord1027

    lord1027 Elite Member

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    Quick update, 3/3 deals were lost, all buyers went to their bank and claimed unauthorized transaction.
    NEVER EVER use PayPal or Ebay for digital goods (unless you want to give them for free)
     
  15. Scraper9

    Scraper9 Jr. VIP Jr. VIP

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    Check these services, you may find solution with some of those:

    Code:
    https://www.payivy.com/
    http://aiobuy.net/
    http://home.bluesnap.com/
    https://www.paymill.com/
    http://www.cybersource.com/
    
     
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