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Paypal issue + chargeback

Discussion in 'Business & Tax Advice' started by Pookok, Nov 25, 2015.

  1. Pookok

    Pookok Newbie

    Nov 22, 2015
    Likes Received:
    Hey, I have had 2 Paypal accounts now! I run an online gaming server and the only way I get money is through members paying for the services I offer, which is virtual items in games in order to gain advantages or to show their opponents that they are richer. My first Paypal account was closed down after 3 YEARS! By Paypal due to a large amount of chargeback in 1 month by multiple users around 87 chargebacks were open, reason for this is because we had a massive downtime and members thought that we were shutting down however, that wasn't the case even if it was to shut down we have stated in our terms of condition that we do not offer any refunds! But I thought that was understandable that it was closed due to the large amount of chargeback opened I was still annoyed obviously as they did not give me the right to appeal, yet I have received over 10 thousand payments and around 500 chargeback were opened in total during the 3 year period?
    I have just recently created a new Paypal 2 months ago with a new address, new name (my brothers), new laptop, new ip, new bank, I did all that to make sure that Paypal wouldn't know its me? And they didn't I have so far processed 2.2k payments and in total we have had 14 chargebacks opened! 1 week ago some kid opened 8 chargeback after that day my Paypal account was limited due to Paypal requesting for information about the business proof of invoices etc... I called them up and told them I was not able to provide them with invoices because the payments I receive is actually for a virtual goods (I however called them donations) they told me that they settled it and I would not have to include anything in there all I would have to do is provide them with a bank statement and proof of identity which I did, they got back to me a day later asking me to update my business information and I believe my error was to set it as a not for profit organisation and when I describe the business "An online gaming server, a community gaming hub where players donate in order to upkeep the server" one of my friends told me that I shouldn't have said that because Paypal does not support stuff like this or something? Which is why the account has been closed down and I was not given the right to appeal as well.
    Now to the chargeback members tend to create them after 2 weeks+ when they have decided that they aren't really keen to play on the server anymore or because they are bored of it, and they normally say "they have not received the item" when they have however, when I explain to Paypal they always say the same usual thing which is... we need to show proof that they have got the virtual item -_-