How to prevent charge backs?

I was just curious how big gold companies prevent from having paypal chargebacks. I realize they will ask for your ID, but what does that change in an unauthorized claim?

How does a website like PlayerAuctions not have people charging back? Wouldn't the company take a hit everytime this happens?

 

playerauctions take precautions, phone calls, id, and are a reputable company and dont get chargedback on often, ID can prove to paypal that the person who made the transaction sent you their ID as proof and can match the ID with their records

 

There are several things you can do:

• Have them forward a receipt that paypal has emailed them to your email
  --- This helps ensure the paypal you are receiving the money from is not a hacked account, and that the sender is the one who created the account.
• Ask for ID
  --- This can also help you ensure the sender is the correct person. Match the name.
• Send a text message confirmation to the linked phone number (if there is one)
  --- If you're selling gp, you can send a text message asking them to confirm that they authorized that transaction. Always a good idea to have them respind with their RSN too (In case that they do open a dispute, you can show screenshots of their rsn confirmation, and you delivering the gp to that rsn.)
• Make sure the paypal is verified (goes without saying)
• Make sure none of the details are fake
  --- No "123 Ihatebananas Drive.

EDIT: The company does. This is why they make you go through a tedious process to confirm that you are the person you say you are. That way if you open a dispute saying it was unauthorized, they can provide proof otherwise. If you open a dispute saying you never received it, they can show proof otherwise. This way they can cover their basis nearly every time.

 

Does paypal support rsgp transactions?

 

They support virtual goods for buyers only.

 

just get as much information out of them as possible and get any ID if you can. it's hard to prevent a chargeback though

 

So if Paypal doesn't support the seller, why would having any of the above information help in a case?

 

To prevent fraudulent claims of unauthorized use.

 

They used to always side with the seller in disputes if it's a reputable, frequent seller.

Has this changed?

 

Doesn't work with unauthorized claims. When people make that claim, they're asserting that they weren't the ones making a payment. It's an instant loss unless you're able to prove otherwise. If it's about not getting a delivery, or the product as it's described, a tracking number is required. Not sure how that pans out for non Ebay sellers.

 

Dunworry wrote some good points!

 

So what is stopping someone from going to every gold website, purchasing gold and then claiming that everything was unauthorized to paypal. Couldn't they potentially make a killing for gold while the gold companies are stuck not being able to do anything.

There must be some way the gold companies fight this?

 

I'm sure some people do this, but it's highly illegal.

 

Did you not read Dunworry's post?

 

I was under the impression that an authorized claim is an instant loss? Are you saying if I follow dunworry's steps I'll be 100% guarenteed safe from charge backs?

 

No... It's to mitigate your losses from those who reverse payments.