Hey all,
Would love some actionable advice on this. So, we process thousands of transactions per year with Paypal as our merchant account/payment processor.
Unfortunately, 1 out of very 6,000 or 7,000 transactions we'll receive notice that a buyer has disputed their purchase with their credit card company. It's always a punch in the gut because we have digital proof that the buyer has both received and used the product.
This happened one other time about 7 months ago and I showed proof again in that situation. A couple weeks later we received word that Paypal sided with the buyer. For the life of me I couldn't figure out why as we had provided proof.
Anyway, fast forward 7 months later. So, this morning and I wake up and see another one of these chargebacks for a new account and go through the same routine as last time. Showing proof, detailing transactions, correspondence with buyer etc.
I go through Paypal's fine print and see they have this listed….
Seller Protection
"Items Not Covered
Items that don't match your description, intangible items like services or digital goods, items that violate our or eBay's policies, and items you sell or deliver in person. All are not covered."
Does anybody have suggestions for how to combat this for the future? We sell digital goods so it looks like we will just automatically lose in this situation which seems very unfair. It doesn't happen that often but none the less I don't like being scammed by buyers. Plus, I have to pay an additional fee every time a buyer requests a chargeback.
Would love some actionable advice on this. So, we process thousands of transactions per year with Paypal as our merchant account/payment processor.
Unfortunately, 1 out of very 6,000 or 7,000 transactions we'll receive notice that a buyer has disputed their purchase with their credit card company. It's always a punch in the gut because we have digital proof that the buyer has both received and used the product.
This happened one other time about 7 months ago and I showed proof again in that situation. A couple weeks later we received word that Paypal sided with the buyer. For the life of me I couldn't figure out why as we had provided proof.
Anyway, fast forward 7 months later. So, this morning and I wake up and see another one of these chargebacks for a new account and go through the same routine as last time. Showing proof, detailing transactions, correspondence with buyer etc.
I go through Paypal's fine print and see they have this listed….
Seller Protection
"Items Not Covered
Items that don't match your description, intangible items like services or digital goods, items that violate our or eBay's policies, and items you sell or deliver in person. All are not covered."
Does anybody have suggestions for how to combat this for the future? We sell digital goods so it looks like we will just automatically lose in this situation which seems very unfair. It doesn't happen that often but none the less I don't like being scammed by buyers. Plus, I have to pay an additional fee every time a buyer requests a chargeback.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
