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Chargebacks

Dan

Dan

Bullah
NLC
Ok.
Over the past 2 months we have been faced with 2 Chargebacks via PayPal. One we unfortunately lost @ 185.00 and one we won @ 120.00. Now we are currently faced with another. Bad for our rep, I know.
So, how many of you, if any, have been faced with these and how did you deal with them? Did you win or lose or what?

Basically, we are trying to find alternatives to PayPal now because we found that those claiming the chargebacks are all unverified.
 
danethicalhost said:
Basically, we are trying to find alternatives to PayPal now because we found that those claiming the chargebacks are all unverified.
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It may be wise to limit your customers to people with verified accounts.
 
I never had a chargeback. When an order comes through to us, we carefully check it out. Stuff such as users IP and the billing address of the credit card an what not. Then we take appropriate action. If it's a credit card, we log into authorize.net and issue a chargeback and block that CC. If it's paypal, we notify paypal right away. Typically they send an email to the user or call the user and then begin the process on taking the money back.
 
We have had a few, 98% are fraud. Best thing to do is verify the IP, check if there paypal is verified (some are though but still fraud). Then wait for 1-2 days, if you dont get any comeback from paypal then complete the order. There isnt anyway to stop chargebacks, only take legal action which can be worth it & sometimes it cant. Its best to process all your credit card orders as you can then process any fees that they owe you if they do a chargeback, but this must be stated in a TOU.

Just hang in :). Paypal *normally* favor with the host 95% of the time.
 
I've been hearing many site's getting chargeback with PayPal. Like Bruce said, the best thing to do is make sure the PayPal account is verified. Or get rid of the PayPal option and keep it to Visa/Mastercard and other credit cards.
 
Thanks folks. Appreaciate the feedback and advice.
We have added to our TOS:
Chargebacks
Chargebacks are totally forbidden by DanEthical Services and will not be tolorated. All payments sent to DanEthical Services are final and non-returnable. Please send any Chargeback disputes to disputes@danethicalservices.com
Claims of Chargeback, where it is found such claims to be false may result in legal action being pursued.
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Or words to that effect anyways.
 
Vietkid58 said:
um, can someone tell me waht a chargeback is?
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It's where someone buys something from you over the Net, for example using PayPal, and then they decide they want their money back.
 
danethicalhost said:
It's where someone buys something from you over the Net, for example using PayPal, and then they decide they want their money back.
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Yea, it shouldnt be allowed full stop!. Its a welcoming for scammers.
 
don't get me wrong I am all for paypal and alternative payment methods but for some reason it seems that the avid paypal users have all become stupid.

want to cancel your server?!?! solution: file a chargeback or just cancel your subscription instead of following the *gasp* instructions on the website.


most people that use paypal I have found actually have a REAL credit card (which of course we take) but for some reason that extra long grab towards their own buttocks to pull their wallet out and look at their credit card is just to hard

welcome to America: land of "do the minimum, but even that is too hard!"
 
This is what forced me to sell my first company, which was a huge disapointment to me. 2co had approved about 5 customers as clients, then turned aorund and said they were fraud.
 
Craig said:
Stormpay was the worst for these chargebacks, they did it on us many a times.
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Yes, we had lost over $6000 dollars due to chargebacks with stormpay, and most were not even implemented by the client. This forced us to paypal only, with a legal term ,stating that a chargeback, will mean that we charge the person via legal means, by 2500 + the amount the payment was for. so far i have to say havent had a problem :).
 
If it were up to me...and it is. Once we experience a higher level of growth I may just decide that paypal isnt even worth the hassle and stick with cc transactions only
 
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