How can I keep safe from charge backs on Paypal?

[prizma]

I am thinking about opening a runescape gold shop and im not really trusting Paypal or the users that will be sending money over Paypal. I would like to know how you guys keep safe from charge backs and how you prevent them from happening.
thanks, prizma.








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[billy su1]

From my experience, a seller made me email him with the paypal email to confirm im the owner

 

[Halide]

Just accept payment with alternate providers like Skrill, WebMoney and BTC instead of PP if you fear chargebacks. This will also reduce the number of customers you get, significantly.

 

[Tyler]

get them to email you from email with a peice of id to confirm their who paypal says they are, you can also check their ip to make sure it matches

 

[LeagueSmurfs]

There are only a few basic checks you can do but I still recommend if you sell something that you sent payment requests to their paypal. Request it as a goods payment so you'll have his adres. You can then resolve his skype ip to see if it matches the area.

You can also check how long his paypal is verified by going to
www.paypal.com/verified/[email protected] (replace with buyers email)

 

[Enmity X]

You can never fully guarantee safety on paypal but just make sure you're dealing with members who have been here quite a while, also just use your gut instinct when dealing with members who seem fishy.

 

[Cya Bean]

If you want to accept Paypal, use PA for untrusted users, and even for trusted members paying directly via PayPal ask for ID.

 

[asdfasdf2]

Request it as a goods payment so you'll have his adres.

Retarded answer... You do understand that you are doing the scammer a favour? It's way, way, way easier to chargeback a goods payment than a Family and friends, you might aswell trade the goods or whatever to him without him paying...

Family and friends the only way is to make a ticket that someone unauthorized has done payments, but with goods it's like pissing 2 fingers...

 

[whaatitdo]

In notes, mention it's for virtual. Second, make sure you're paying fees (or the other side at least is, paypal would much rather support someone making them money. Third, keep sufficient evidence of chat deal, in game evidence, etc.

I'd also recommend calling paypal too, if a dispute is in process, might go a long way.

 

[LeagueSmurfs]

Retarded answer... You do understand that you are doing the scammer a favour? It's way, way, way easier to chargeback a goods payment than a Family and friends, you might aswell trade the goods or whatever to him without him paying...

Family and friends the only way is to make a ticket that someone unauthorized has done payments, but with goods it's like pissing 2 fingers...

You're talking to a guy with 3 year paypal experience and thousands of dollar worth of disputes won. Calm down before you call someone retarded. Seems like you didn't educate yourself about paypal at all.

 

[asdfasdf2]

You're talking to a guy with 3 year paypal experience and thousands of dollar worth of disputes won. Calm down before you call someone retarded. Seems like you didn't educate yourself about paypal at all.

Nothing really to educate myself about paypal... Have been quite a long time in virtual good business and have recieved the consequences of using paypal (Only using it now if i sell to Chinese gold websites)... With the new bloom of purchasing paypal balances and hacked accounts, scammers are aiming at virtual goods businesses, because it is really, really easy to resell and damm profitable and almost untracable. For example rsgp, takes around 2 minutes to find a buyer and resell to another person... Paypal isn't safe at all for virtual goods, unless you have a contract with a company that deals with chargebacks and you're paying x % fee, similliar to playerauctions... And as for a person who is wondering how he can keep safe from chargebacks, use family & friends, it will decrease chance of chargebacks than using goods. Have done a chargeback to few people myself and payed them with goods and it was quite damm easy to get a refund, than with family and friends (wasn't scamming)

 

[LeagueSmurfs]

Nothing really to educate myself about paypal... Have been quite a long time in virtual good business and have recieved the consequences... With the new bloom of purchasing paypal balances and hacked accounts, scammers are aiming at virtual goods businesses, because it is really, really easy to resell, for example rsgp, takes around 2 minutes to find a buyer and resell to another person... Paypal isn't safe at all for virtual goods, unless you have a contract with a company that deals with chargebacks and you're paying x % fee, similliar to playerauctions...

Yes PayPal has a huge flawed buyer/seller protection plan but there are loopholes to protect yourself as a seller which I figured out. I win about 95% of all claims.

 

[asdfasdf2]

Yes PayPal has a huge flawed buyer/seller protection plan but there are loopholes to protect yourself as a seller which I figured out. I win about 95% of all claims.

Well i'd like to hear some loopholes how you were able to win around 95 % of all claims, if thats not a secret...

 

[prizma]

Well i'd like to hear some loopholes how you were able to win around 95 % of all claims, if thats not a secret...

Why a fight thanks everyone for your answers!!! helped me alot.

 

[Not Stable]

Confirmation of ID, make people write down their full name, date, time your name / the item of purchase, make sure they send a note with everything in it.

If they still charge back don't send a email to paypal, always call up paypal and provide the ID confirmation etc, they will sort it out fast

That's what one of the gold farmers i know do, always works for him

 

[PlayerAuctions]

Unfortunately none of these suggestions are fool proof, and will fully protect you from chargebacks. And for some (especially new sellers), a 5% loss rate (referring to LeagueSmurfs 95% win rate), can be catastrophic for a business (PlayerAuctions for example would have died a long time ago with loss rates that high). So it really depends on your profit margins, and if you can afford those kinds of losses to begin with.

One additional factor you will need to take into consideration if you are starting your own RMT business, is PayPal's dim view on virtual goods trading. Because virtual currencies have come under scrutiny and have issues with federal compliance laws, unless you keep very good paperwork/documentation, it is possible to get *YOUR* PayPal account locked or limited.

About 4 years ago, I approached a large seller about potentially starting a partnership with us by opening a store on PA. He was interested of course seeing it as an additional channel to acquire users, BUT he wasn't in any rush to get it done...until...

... he had his PayPal frozen... with $50,000 inside of it. Unable to supply PayPal with the necessary documentation they requested for their KYC compliance policies, he basically had to shut down his business the next day, and transfer his whole store into a PA storefront, thus beginning his most profitable venture to date. He wasn't able to retrieve his $50k from PayPal unfortunately.

Unless you are very brave and willing to risk a situation wherein you have a large amount of funds no longer accessible, or just having your own PayPal accounts limited, it would be unadvisable to do direct trading with other users.

You *CAN* prevent chargebacks and risk to your personal PayPal by opening a store on PA, but if you 100% prefer to do it alone, there is ONE way you can prevent chargebacks, but it is so inconvenient that it just doesn't work for our type of business. A) Buyers wouldn't opt for that type of order confirmation and B) Sellers would have to invest too much time to make it work.

PayPal is an aggregator, NOT A BANK. In order to win 100% of your chargebacks, you'd need to present the same type of evidence that would convince a bank, because if the scammer bypasses PayPal entirely and initiates the chargeback at their bank, then PAYPAL has to defend the merchant TO THE ISSUING BANK, which is not something they are usually willing to do unless they have foolproof evidence.