Paypal Disputes

[rke211]

Im just curious if anyone has ever won one of these against a client so far in total ive had two made including the current one and i lost the last one which cost me the cost of registering the domain name now another client has opened one which again will cost me the price of registering a domain name

[Bubka3]

Dispute (opened via paypal):
Call PayPal Customer Service, ask for a dispute specialist and tell them it is a virtual item.

Chargeback (opened via bank):
Well, if you have forced shipping info from PayPal enabled, then go try to battle it. never mention it is virtual. You might win.

[rke211]

Well thankfully this time it was resolved by the client who closed his dispute

He was quite surprised that his account got suspended. But if the money isn't in our account than his service isnt going to get done.

and thanks ill keep that in mind for the next time it probably happens

[m8internet]

Before ordering the Domain Name, and if it is a new client, check the email address on their cleint account against the PayPal email address
Each case I have had, they have been different
Send an email to the client (not the PayPal email address) that the registration of the Domain Name is suspended as the two email addresses do not match and is being scrutinised against fraudulent use
Also, add details in your knowledgebase with full details

PayPal has improved over this issue recently and if the client does not have the funds in their bank account (the usual cause) you should be notified by PayPal within 6 hours

[Raven]

I have just won a cc charge back so it does happen. Allthough i did flood paypal with information screen shots and a phone call or 6 or 16 i lost count

[vincent_g]

First thing to do is be sure it's a real client.
Maxmind is quite helpful with this although you do get false positives.

When in doubt call the client.

Since Enom has changed their policy that makes all sales final - taking an order is a gamble as if your client is ligit and he decides to cancel you well maybe stuck with the domain.

If the card used is fraud then your stuck - no way out.

I don't care about refunding the hosting fees as is nothing lost but time.
The domain isn't too costly but it's not fun to loose.

Either Paypal or Credit Cards are pretty much the same story.
Some have it worse - Gold dealers for instance get stuck for around $1600 on a 1 oz. gold coin when the client reverses the charge.
That hurts big time.

[rkatz0]

I see one poster won a cc chargeback with Paypal, quite inspiring!
In my experience they just reverse the disputed charge and sit there until
the due date comes and you lose. I had one case which a client paid every month
for 3+ years and then decided it was fraud so they got the last 2-3 charges reversed by Paypal.
I submitted screen shots and all the pertinent information and it seems Paypal did not even review
what I sent...sounds like it might be a roll of the dice as to whether the information
actually gets reviewed by a competent Paypal employee.

Nothing definitive, just my 2 cents.

[rlshosting]

If they charged back after the 3rd year, I'd terminate them. They'd recieve no backup or anything.

[rkatz0]

If they charged back after the 3rd year, I'd terminate them. They'd recieve no backup or anything.

@rlshosting - We only care about clients we can please on a long term basis. And care we do! If that changes they are no longer in that category. Viciously terminating a client (as opposed to suspending and waiting for them to make the account good) would be considered too much care for a fluff head who decided to reverse charges rather then contact us first. The account was suspended after the chargeback and then of course removed after some time (4-6 weeks I believe) on the Paypal grill. Ok, so that was part of a mission statement!

[Si]

Paypal disputes are a joke in the web hosting industry. We've been in business for 13 years, and when these come up, we have maxmind info, screen shots, IP addresses and in some cases a history with the client - we have never won one single chargeback case (I've lost count). Their subscription payment system is more hassle than it is worth. We stopped allowing customers to create subscriptions 4+ years ago.

For all these reasons, (as well as the fees charged by paypal) we are looking to drop them as soon as we can. Most customers pay us through our merchant gateway now, and we are bringing in gocardless with the launch of 5.1 - at that point - paypal are gone from our billing options.

[andygambles]

Never lost a PayPal dispute. Just respond non-tangible item. Always found in our favour.

[easyhosting]

Never lost a PayPal dispute. Just respond non-tangible item. Always found in our favour.

but sometimes paypal can turn this on you.

non-tangible items do not have PP Buyer Protection, but they also dont have PP Seller Protection

[leewells]

I took a little business law in my learning days... One of the things we do is require a signature be faxed or emailed to us that is very clear that the item is virtual and they concede to any dispute that they are in and have been in possession of this virtual item. Basically you work it like rent -- if you call your credit card company, they just simply won't let you get your money back for rent

[easyhosting]

I sometimes buy stuff without logging in on paypal, how do I manage disputes?

you can either telephone PP or email them with the transaction number as you would if you were logged in

[b0r3d]

you can either telephone PP or email them with the transaction number as you would if you were logged in

This is pretty troubling, something i've been worried about for some time. Recently had what appears like a legit customer purchase 5 domains from us. Each he setup what appears legitimate business sites (trendy flash sites) nevertheless i'd be out near $50 for all 5 just on one customer.

What i find insane is the 45 day chargeback opportunity buyers are given. You should have 7 days maximum, period unless it's an ebay item.