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Need some help to detect fraudulent PayPal Payment

Discussion in 'Business & Tax Advice' started by scenium, Nov 3, 2016.

  1. scenium

    scenium Newbie

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    Hello,

    I need some advise from seller who are using Paypal as payment method.

    I run a website selling customized shirt (original product) not copy and few of them have been reported as not authorized by Paypal account owner or not recognized.

    The problem I have is the customer name registered on my website with billing address, Delivery Address are the same as the Paypal account owner. So it's hard to belive that the owner did not authorize or recognize the payment. when the delivery address are with the same name of the Paypal account owner.

    Please can you give me some tips to avoid to get similar problem because even after sending to Paypal screenshot of the customer registered details on my website such as Billing Adress, Delivery address, IP Address, tracking number, the product have been delivered properly and signed by the customer, Paypal still refund the customer without giving me any information.

    How I can detect fraudulent Paypal payment and make sure the person who buy product on my website are the real owner of the Paypal account, Because customer seem to know how Paypal working and try to cheat website owner but open dispute and get free product.

    I will be happy to get some help as I lose more then 200$ this last few days with fraudulent Paypal payment

    Best regards,
    Scenium
     
  2. veki971

    veki971 Registered Member

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    I am sorry to hear that. It looks as if there is growing number of stolen ID, PP and credit cards floating around, and it gets easier then ever to make a fake disposable and verified PP account and just make a chargeback and get away with it.
    The only real alternative is to start acepting Bitcoin, once you receive it, there is no way in the world someone will claim it back. For example:
    https://www.gocoin.com
    https://cryptopay.me/accept-bitcoins
    https://www.coinbase.com/merchants
     
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  3. Danielsmith12

    Danielsmith12 Newbie

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    My friend is used this method.I will ask him.
     
  4. scenium

    scenium Newbie

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    Thank you for your advise but I wanted to keep using Paypal, I selling mostly in France and customer are not used to pay with Bitcoin. There is no way to detect someone which are using stolen / Hacked Paypal account by asking customer to send me email from the same email adress associated with PP account etc...?
     
  5. veki971

    veki971 Registered Member

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    Maybe someone with more expierience in this area can help you out with some better advice.
    For what I know, yes- you can do that, so ask them to respond from PP email, and ask them to send you a scan of some official ID with their name matching PP, and make sure you use a tool to check if the picture/scan wasnt photoshoped. This should largely put away froudsters, but it is not 100%.

    Aslo I saw that some people ask buyers to send them email with their statement that they received the goods, with all the details, so in case of dispute they can use it. But since Paypal is not supporting sellers of digital goods, and is strongly on the side of buyers, I am not sure if it can help in case of dispute/chargeback , but it may help puting scamers away.

    Aditionaly, some webpages that are facing the same problem with Paypal, they send a letter to the buyers adress to verify them. In the letter you can put some code that they will send back to you to verify that they received it.

    Also there is a more complex blachhat way, but first try this above, hope it helps you a little.

    Cheers
     
  6. Weirdest

    Weirdest Junior Member

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    @scenium Well, to do that you have to manually review and approve orders. If your website has lots of orders daily, that's more workload for you. You'll also lose some clients who wouldn't be patient enough to go through a 'long process' not because they are fraudulent, trust me some people are like that. Easy does it better for most people. I'd suggest you don't hurry to process and deliver order after you receive Paypal payment. Give it 12-24hrs or more, see if the payment chargeback before you process order and insist on delivering digital goods to same email used for PayPal payment.
     
  7. veki971

    veki971 Registered Member

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    I agree with you, for some people it will be too much and will refuse to go thru all that. And as for the waiting period 12-24 h, don't know how that helps, the buyer has weeks and months after purchase to decide to chargeback. Anyways, accepting Paypal for digital goods and online services is a stressful thing.
     
  8. Low/No Income

    Low/No Income BANNED BANNED

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    Just do a background check on them before doing transactions with them mate.
     
  9. immauser

    immauser Newbie

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    dont ship your items until the funds are cleared. even if it comes from credit cards.... let alone an echeck
     
  10. mahawebhosting

    mahawebhosting Regular Member

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    there is think called fraudrecord
    tried it?
     
  11. stephen513

    stephen513 Newbie

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    you can accept bussiness payments if in USA, only costs 50 cents per transaction, and the buyer can't use a credit card only a e-check or pp balance, so no chance of charge back months later, as far as I know
     
  12. patriotnews

    patriotnews Senior Member

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    Simple answer. You can't. Some people will always charge back for free shit.
     
  13. Abe

    Abe Junior Member

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    I agree - you just have to factor it into your costs/losses.
    i.e after a few months work out how many take place & factor that into your prices
    e.g. +3% increase etc...

    Also offer incentives for using other payment methods
    E.g. -5% discount for bitcoin etc...