How do Gold Sites Safely Sell GP? (5 questions)

For a long time now I have been trying to work out how gold sellers with websites can ensure security when accepting payment methods like paypal. I think this is highly useful knowledge for this whole community to be aware of as these practices can help reduce the amount of unsafe trades and scams.

Here are my main questions:

1. I am aware that requesting an ID photo from a user can help reduce the chances of a charge back but why is that so?

2. After a charge back request has been made, how do we use this ID as a defence to our case?

3. Is having a business paypal account safer than having a personal payment account.

4. Do these gold selling sites have special agreements with PayPal?

5. How is it that some sites can sell up to 100m osrs via PayPal without any ID requirements? What do they do that we don't?

 

I would like to know this as well, just for the sake of protecting myself from chargebacks

 

1. Paypal requires you to enter your address, country and name. Your ID will have these stated as well. The livechat agents will make sure the 2 correlate, if the photo ID info doesnt match your paypal info they'll most likely refund you and request you use an ID which matches your paypal.

2. Most websites I've visited require photo ID with a handwritten note stating "I am buying x amount of gp from xyz.com" somewhere in the frame. This is basically acknowledgement from you, "yes i am buying gold of xyz.com" In the event of a chargeback they can provide this acknowledgement to dispute. (Though im not sure if it works or not)

3. This one I cant answer you since I dont have a business paypal account and I dont use paypal that often.

4. Again, this I have no way of knowing. I doubt they do but I may be wrong.

5. Sites can sell gold without giving ID because their business is all down to integrity. File a chargeback and your customer(s) can report you for scam and you lose business. Theres no point for them to scam because by being legit they can make more profit. But for an ordinary person buying, they can file for a chargeback without much to lose.

That being said, still always buy/sell gold to reputable sellers/buyers. And try to recieve payment in BTC since there is no way a chargeback.

 

Thanks! For 5 I was referring to when sites don't request ID from their customers.

 

good read thanks for the information

 

Wait wat do people chargeback on sites? Never knew that just thaught if they trade with people on sythe it sometimes happens.

 

they trade it to many accounts so it doesn't get traced

 

1. I am aware that requesting an ID photo from a user can help reduce the chances of a charge back but why is that so?

ID+ custom note shows ur actually talking to that person, ID does nothing, the custom written note is what matters(and the ability to notice photoshop on them).

2. After a charge back request has been made, how do we use this ID as a defence to our case?
If they dispute it as unauthorized, its pretty iron clad proof showing their ID+note to paypal to help prove it was authorized, This is unless its a bank reversal or credit card dispute.

3. Is having a business paypal account safer than having a personal payment account.
Yes, the more you process through paypal the more friendly they will be, paypal likes companys that make them money.

4. Do these gold selling sites have special agreements with PayPal?

Depends.

5. How is it that some sites can sell up to 100m osrs via PayPal without any ID requirements? What do they do that we don't?

Some sites try to outsell quanity over quality per say, if you get a ton of OSRS sales, the fraud rate is between 1/8-1/14, meaning if u sell 10 x 100m=1b with a 20% margin ud of made $200, if u figure 1 of those payments is fraudlent and u bought the gold for $1000 total but sold todays sales for $1200, so u take a $100 fraud hit, that still leaves u with $100 profit.


The above method relies on being able to move bulk quanitys of gold consistently every day, otherwise you end up in the red.

 

I'll leave specific answers to people more experienced than me with this, but many people are starting to use 'intermediators' to process the payments. An example of this is G2A. So, it's like having insurance. They process the payment, and then give to you, and they take care of the charge back (you have to pay them a fee for this, of course). The only thing they require from their client (the website) is a % of each order and some specific documents such as id, receipt screenshot, etc.

cheers

 

I've talked to gold sellers that say the same thing, they basically accept that there will be some charge backs and just make sure to profit enough for the charge back not be that big of a deal.

 

Or just use g2a and dw about it .

 

Never heard of this until now, thanks will definitely be checking this out