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Lol... so yeah... Paypal Transaction Disputes...

Discussion in 'Off Topic' started by Jaxel, Jan 24, 2015.

  1. Jaxel

    Jaxel Well-Known Member

    So I actually get a lot of Paypal transaction disputes. Someone purchases a product, downloads it, then immediately files an "unauthorized transaction" claim on Paypal. Unfortunately, Paypal pretty much always sides with the buyers because they don't protect digital goods. When this happens, I kill the order from my system as soon as I can.

    So today I get a PM from one such person, complaining that they are not getting emailed the updates for the product... Seriously? You defraud me and then complain when you don't get support?
    Anthony Parsons and wedgar like this.
  2. Brogan

    Brogan XenForo Moderator Staff Member

    We take a very dim view of that.

    Feel free to report the member with any supporting details and we will look into it.
    MattW, Alfa1 and AdamD like this.
  3. AdamD

    AdamD Well-Known Member

    [QUOTE="Jaxel, post: 886659, member: 1295"Seriously? You defraud me and then complain when you don't get support?[/QUOTE]
    That's insane, lol.
    But, haven't Paypal changed their policies recently with regards to digital items? I thought they actually investigated such things now?
    wedgar likes this.
  4. Liam W

    Liam W Well-Known Member

    I've only had one such incident, which I guess is really lucky.

    Anyhow, it was for post macros - and the buyer had bought an add-on from me before and hadn't chargebacked, so I was really confused...

    Anyway, in the end PayPal looked into it for 6 months and decided I couldn't have my money back... I was charged £40... (£20 purchase amount, £20 chargeback fee).

    Oh well.
  5. Liam W

    Liam W Well-Known Member

    Huh, I just looked at their user account here and it's banned... Also the validation token they used is showing that the license isn't valid.

    I guess a similar thing happened with elsewhere as well.
  6. Slavik

    Slavik XenForo Moderator Staff Member

    Ive had the same with a user who purchased the BBI. Lied to paypal, lost the Paypal dispute, so filed a credit card chargeback instead. With fees and whatnot ended up costing me £55 in addition to refunding the money.
    Last edited: Jan 24, 2015
  7. Russ

    Russ Well-Known Member

    If they do unauthorized claim it doesn't matter if it's a digital item.
  8. AdamD

    AdamD Well-Known Member

    Ahh :( Yea I guess I can understand that.
  9. wedgar

    wedgar Well-Known Member

    There is a service called Ethoca that you can submit fraudulent credit card transactions which other companies will pickup the card number, billing/shopping address and will block user of any transaction with that information.

    We used that service for out and out fraudulent orders or even friendly fraud orders. Friendly fraud is where a child would use mom or dad's credit card and the parents would cancel the order claiming it wad an unauthorized use of the card.

    Their web site is www.ethoca.com
    AdamD likes this.
  10. wedgar

    wedgar Well-Known Member

    That's insane, lol.
    But, haven't Paypal changed their policies recently with regards to digital items? I thought they actually investigated such things now?[/QUOTE]
    Of course, you owed it to him... :whistle:
  11. rainmotorsports

    rainmotorsports Well-Known Member

    If any claim is processed from the machine, IP, etc the purchase it was made from... They ought to deny it. Just sayin? Lol

    Then again multiple people with access to a machine... Sigh
  12. Deathstarr

    Deathstarr Active Member

    Its crazy, When I did web hosting it was even worse because they were paying for space and not a code, So when they charged back I would jut do a refund to make it simple. I quite the hosting industry, but I hate people that chargeback just to get a few bucks back.
  13. EQnoble

    EQnoble Well-Known Member

    I have what I believe is a viable solution to this...and I am confident that the chargeback BS would not apply if things are done in this manner.

    I am planning on publicly releasing my first paid non custom addon soon and even though I would be risking the entire (non-programming) community hating my idea for a change in what is now common practice, I believe it will protect me or anyone else that does this.

    I am going to contact paypal after lunch and see if I can get into a nice convo with their legal department to see if my idea would be considered fair and equitable for the consumer while still legitimately protecting myself in their eyes. As far as CC purchases go I already know this method protects sellers from charge backs so if paypal gives me good word I will give it a try.

    ---time passes---

    I just hung up after speaking to a couple departments and I brought up my idea and the relevant terms in their policies that make my idea legit in accordance with the verbiage used in their policies and after a bunch of 'hmms', 'umms' and 'ahhhs' they sent me to cooperate who I will be waiting to hear back from so they can investigate if my method is legal and falls within their policies.

    If anyone is interested in protecting themselves as a seller of goods and wants to hear the outcome when I receive a reply from Paypal as to my legal inquiry as well as my proposed methods, like this post and I will add you to a group convo when I get a reply.
    batpool52!, borbole, Alfa1 and 7 others like this.
  14. Jaxel

    Jaxel Well-Known Member

    OMG! I had a chargeback dispute decided in my favor today! This is a first!
    Renada, BirdOPrey5, Liam W and 4 others like this.
  15. Liam W

    Liam W Well-Known Member

    @EQnoble I'm guessing you never got a reply?
  16. oman

    oman Well-Known Member

    Have their policies changed or something?
  17. EQnoble

    EQnoble Well-Known Member

    Things are happening but still am not quite ready to disclose what is happening yet and don't have the time at the moment to really get into the convo about it, I will still get that group convo going as soon as there is a definitive and actionable response or in the worst case scenario an explanation of why it is not.
    Liam W likes this.

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