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Refunds, chargebacks and fraud. How to prevent?

Discussion in 'BlackHat Lounge' started by rees9, Dec 29, 2015.

  1. rees9

    rees9 Junior Member

    Nov 26, 2015
    Likes Received:
    IM, language teaching
    Hey. So I'm launching an online business (SEO services) and tbh I'm scared to death about chargebacks, given that I'm offering an intangible service. I have a couple of questions and points below.

    So here's what I've done so far to make myself more secure:

    1. I will only accept wire transfer on orders above $100.
    2. I'm in the process of offering bitcoin payments.
    3. I have FraudLabs Pro plugin in woocommerce (which btw, doesn't work, PM me if you can help me)
    4. In my terms of service I have stated that the customer agrees not to claim any chargebacks (I doubt if that helps, tho).

    There's also interesting woo plugin called Vantage Point which records everything the user does on the site, and it can be a good proof if an asshole claims he never ordered the service. Unfortunately, the plugin doesn't seem to work with the current version of WP.

    Ideally, I wouldn't offer any refunds because it's a digital service and anyone can theoretically claim the service wasn't as described and there's no way to really prove he's wrong. However, to prevent chargebacks, I decided to offer refunds. Currently I only refund 75% of the original order so that I can cover my expenses related to the service with the remaining 25%. What if some scum decides he's gonna get more than 75% by claiming a chargeback? :/ Should I perhaps offer full refund instead?

    What about payment processor? I know people say Paypal is shit but ultimately chargeback claims are initiated by customer's bank, not payment processor, so does it really matter which payment processor receives the claim?

    Also with Paypal, do you automatically get this $20 chargeback fee or only if you fight the claim and lose it?
  2. Ste Fishkin

    Ste Fishkin BANNED BANNED

    May 14, 2011
    Likes Received:
    Stop using paypal. They will NEVER rule in your favour.

    Bank transfer with a written contract is the way forward. You do not work without a contract.

    With a contract everything is agree'd to. Payment amount, method of payment, deadlines... it's all there laid out. No arguments.

    Do not life a fucking finger until this is signed. Once it is signed do not alter it. That contract is your shield and sword between you and a world of shit where retards will claim anything they like to get their money back. People are cunts.
    • Thanks Thanks x 1
  3. joe2solution

    joe2solution Newbie

    Nov 29, 2016
    Likes Received:
    I have an interesting solution please send me your contact info to [email protected], stopping to accept PayPal will turn away clients.