Web Service Payment Methods (and preventing chargebacks)

What are the best payment methods when selling web services?

I was thinking of bank transfer and PayPal, but I'm worried about the charge-backs with PayPal. I've gotten very mixed results reading about how to prevent them, but surely I can lower the chances of the client attempting to do it? Or what are some precautions I should take to win a case? I've read about:

• Mailing a letter to sign and return (hassle..)
• Asking for a photo of their credit card or driver's license (I don't want to be asking for this info)
• Asking for a forward of the PayPal receipt
• Asking for a copy/scan of the signature used on the credit card
• Asking for payment through PayPal balance

Any suggestions or tips?

there are other of my payment method that can not chargeback. wmz and libertyreserve

Yeah go for Liberty Reserver Its the best

Chargebacks are a fact of life. The only way to reduce them on paypal is to get a shipping address and ship something with a tracking number to somewhere in the same city with a confirmed delivery (doesnt require signature.) You could ship a dye, a brick or nothing. As long as it has a tracking # and is sent to them they cannot use the "didnt receive it" excuse.

However, as long as a credit card is used you cannot protect against it. They will always side with the person owning it.

If you want to really want to make money selling online you have no choice but to associate yourself with the super payment gateways like PayPal & CC providers. You want something that a wide range of people can access easily. If you offer exceptional services you don't have to worry about chargebacks because that will be in the minor and if most of your clients don't pull chargeback, you can be considered by your merchant when a fraudulent customer tries to pull a fast one.

john1444 said:

If you want to really want to make money selling online you have no choice but to associate yourself with the super payment gateways like PayPal & CC providers. You want something that a wide range of people can access easily. If you offer exceptional services you don't have to worry about chargebacks because that will be in the minor and if most of your clients don't pull chargeback, you can be considered by your merchant when a fraudulent customer tries to pull a fast one.

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Yeah, I know I'm stuck with PayPal. I'm not worried about chargebacks because of the work. It's the fraud I'm worried about. I only have a Premier account, so will that help me in any way, or will only a business account help in those cases?

Alinea said:

Yeah, I know I'm stuck with PayPal. I'm not worried about chargebacks because of the work. It's the fraud I'm worried about. I only have a Premier account, so will that help me in any way, or will only a business account help in those cases?

Click to expand...

Why would you have to worry about charge back if you are going to provide good customer satisfaction. I would suggest you have a clearly defined refund/cancellation policy and make it visible to clients before they signup.

Once they see the fine print and signup, there should be no issue.

Having it as transparent as possible is a good sign for a reputable business. If the client is not satisfied, you have to go a mile ahead and offer them the refund yourself .

Another option is to let them first try your service .

We run proxies service and here i share some steps which has helped us combat fraud online. Its not easy but with the right resources and vigil you can tackle it.

And about the fraud, there are some options available such as

> Maxmind fraud detection script (check www.maxmind.com ) > Signup for a account, integrate the script which will allow you to reduce majority of risks of known fraudsters.

> Use automated phone verification (again maxmind n few others provide it.

> If you use a standard billing software such as whmcs, all these plugins can be integrated in 5 mins.

> Blacklist countries from where you may see a lot of fraud. This would help you cut down most of it.

> Proxy filter scripts which will block access to clients using anonymous proxies.

> Accept e-currency such as Liberty Reserve for high value or high risk clients. You may also insist on bank wire.


Please note if your account receives high number of disputes/chargebacks than usual, paypal will close it permanently.