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High Number of Paypal Chargebacks This Month?

Discussion in 'Off Topic' started by Jaxel, Aug 18, 2013.

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  1. Jaxel

    Jaxel Well-Known Member

    So this month, I've lost about $1000 in revenue already.

    People will purchase my addon, pay for them with paypal, DOWNLOAD the addon... Then file a chargeback claim with paypal. And of course, since its digital goods, paypal will refund their money, even though they got the product.

    Anyone else having this issue?
  2. samo

    samo Active Member

    dam dude i'm sorry to hear some a** is doing that to you and stealing your money/goods like that, I wish you would seriously consider using bitpay in the future, as thieves couldn't do a charge back since its bitcoins and bitpay converts payment in bitcoin to w/e currency you choose with just a 1% fee, definitely look them up bro https://bitpay.com/ and sorry to hear that especially for the work you've done for this community.
    Brandon Sheley and 0xym0r0n like this.
  3. whynot

    whynot Well-Known Member

    That many chargebacks... Didn't you get some warning from PayPal?
  4. Stallyon

    Stallyon Active Member

    I would report this to PayPal, and also ask PayPal as to the reason they granted refunds when they have taken your intellectual property. I stopped dealing with PayPal because it's too easy to be ripped off by them. They are only interested in protecting the buyer.
  5. Brentnauer

    Brentnauer Well-Known Member

    Do you at least get to know who they are?
  6. Mike Edge

    Mike Edge Formerly Da Bookie Mon

    Wow that sucks, we have had a few charge backs and I have won every one of them. Really unsure as to why your losing as Paypal has zero buyer protection against non-tangible items. I found using digital, virtual etc for terms is hit and miss on win/lose as there is nothing about it in the ToS, but there is for non-tangible items. So use the term as often as you can and you'll win every time!

    A bit more work, but maybe for your more expensive mods, send the fetchapp url by real mail.. Make them sign for it and get a tracking number. I use to work for a company that did dedicated servers, they had a $15.00 set-up fee. This covered sending your server IP and root password overnight via Fed Ex.
  7. Russ

    Russ Well-Known Member

    Sadly depending on how they put the claim PayPal will award in favor of the buyer if there's no physical tracking involved. This has been my experience at least.
  8. Mike Edge

    Mike Edge Formerly Da Bookie Mon

    Maybe it's different for us since were a service rather then a digital item.
  9. LPH

    LPH Well-Known Member

    I'm sorry to read this is happening. It's wrong. Even when you disagree with a developer regarding a product, a charge back is the wrong process. There is nothing worse than a person stealing - on the developer or consumer side.
  10. Jaxel

    Jaxel Well-Known Member

    Because most of the time, its through the credit card company, not paypal. If the credit card company reverses the charges, Paypal doesn't protect me because of their intangible goods clause.
  11. Brent W

    Brent W Well-Known Member

    Any trend on where these are coming from? Time for a StopChargeBacks.com api to plugin into your ordering system so people can report these people and prevent them from ordering elsewhere... :)
    wickedstangs likes this.
  12. Rigel Kentaurus

    Rigel Kentaurus Well-Known Member

    Yeah .. same things here, it is really annoying

    I have tried contacting paypal, and I even provided proof that the person downloaded the addon, with the server log and the IP address, so they cannot say they "did not receive" it.

    However, for Digital Goods, PayPal completely sides with the purchaser and not the merchant, and I end up not getting anything. I can of course revoke further download privileges ... but, at that point it's too late.

    If something, the buyer can only do that like 3 times. After that Paypal will frown upon it.
  13. Moshe1010

    Moshe1010 Well-Known Member

    I would change the entire process to work manually. Then, people would have to send you a PC in order to get the add-on from you, and then you would know exactly who is it and blacklist him/her. Since people are limited in the amount of users they can associate with their license, they won't do it regularly or at all if you/any other developer would know who's behind the chargeback.
    Robert F Schmitz likes this.
  14. Mike Edge

    Mike Edge Formerly Da Bookie Mon

    Maybe we can all help fight it together and form some sort of RBL type blacklist. Paypal should also offer some sort of blacklist too. When someone disputes there should be a button "block all future purchases from this account", or they can just do it again to get a later version and chargeback again after.
  15. Rigel Kentaurus

    Rigel Kentaurus Well-Known Member

    The problem with that is that I prefer to give customers an "Instant gratification" scenario in which immediately after the charge they get the add-on. Also, the least user intervention the process requires, the better.

    I'd rather give valid customers a better experience and just deal with the jackasses gaming the system to get it for free.
    0xym0r0n, Dan, Chris D and 1 other person like this.
  16. Jaxel

    Jaxel Well-Known Member

    But they can do it with the credit card company, and then they dont have the paypal restriction. Someone bought literally EVERY addon I make... including XenTorneo, and chargebacked them all. Probably to put my addons on hacker sites.
  17. Jaxel

    Jaxel Well-Known Member

    I agree... besides, it wouldn't stop them, they would just make new paypal accounts.

    Its the same as the DRM issues; it only hurts legitimate buyers.
  18. whynot

    whynot Well-Known Member

    It's not as easy as a new email account...
  19. Jaxel

    Jaxel Well-Known Member

    To scam someone for $500, its worth the effort.
  20. Stallyon

    Stallyon Active Member

    Is it possible to ask for their XF username at the forum here so you can name and shame them?
    wickedstangs, LPH and Gabby like this.
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