Be aware if you are selling intangible goods with PayPal!
Hi all! How are you all doing? Just keep on going, don't look back and never give up!
I am here to remind that I had a terrible experience with PayPal when selling something online. This is totally unbelievable that PayPal doesn't cover intangible goods with Seller Protection program! What happend was that I actually already delivered the product to the client and he/she already using it so obviously, but he/she filed a dispute and PayPal claimed that the payment I received was not authorized by the account holder which mean I couldn't get the product back and PayPal refunded all the payment associated with this order back to the account holder! So what now? I get nothing at this deal! :'(
From what I know about the PayPal Seller Protection program, I am so totally disappointed as they only covering Buyer with intangible goods, without any discussion with the relating Seller, Buyer would just win the dispute! So for all of you who selling intangible goods with PayPal, please make sure that you understand how the Seller Protection program works!
Now I am thinking a plan of how to prevent this kind of situation to be happend again.... What in my thought now is that I may not deliver the product straightaway after the payment is received, I should first transfer from PayPal to the country bank account and once I confirmed the payment is successfully arrived in my country only I deliver the product. I know many of you had the same experience as me, do you come out with a plan for this? Please share with me if you don't mind, would like to see whether this could be improving or not in the future! Just so sad with PayPal Seller Protection! :'(
@AJun
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Hi Ajun, the unfortunate truth is that there are some dodgy characters out there, in this digital age sometimes when doing business across borders there is a risk involved, folks are quick to seek refunds with the intent of keeping the goods especially digital products.
I believe it is possible to blacklist some customers, commonly referred to as serial refunders in the industry.
I hope that you don't mind me asking but what was the product and what platform were you selling on.
We are a large community here at WA and as such could mount a massive collective, that could notify other members of such occurrences. Food for thought.
Hi,
Totally well-said! I agreed, there is always a risk for online business, no matter what type of it is in the industry. Nowadays, fraudsters are able to create unlimited PayPal account using different email address to perform scams, however this is just for PayPal, how about other payment processor? Too much of the fake or phishing emails out there already which could lead blacklisting goes to ineffective. :(
I am glad to share them (product and platform) out to the community! My business is focusing on intangible goods which providing extremely ease for both client and my business team, everything could be done online just with some clicks of effort! It's something like e-commerce exchanging digital currency which doesn't need any paperwork in reality, even it could be just deal in minute!
I am in for the foundation! Let's share it out as much as possible, I strongly believe that still a lot of us using PayPal as a payment gateway to sell the intangible goods here! They should be aware of this situation! Let's shout out for this fraud! :)
@AJun
I didn't know any of this. Thank you for sharing. I was really considering it. Now I I'm not.
I hope it helps you to understand the basic information of selling items with PayPal! Please really be aware of this kind of frauds! Good luck to you! :)
@AJun
Keep in mind this is not what happens with the average customer and transactions like this don't dominate your selling online but if you are getting high refund rates it may serve you better to get a regular credit card gateway or ClickBank to help sell your goods that understand they are digital and high risk of chargeback fraud.
Andy Zeus Anderson
This is nothing new and it's not just PayPal. There is software out there that can be added to e-books and software programs that turn off license if an e-book or software is refunded but it doesn't protect things like graphic design.
Yea absolutely right! This sounds new to me since I just jumping in lol! :) I think there should be still a way to better protect this kind of situation but just we can't find it yet! :(
@AJun
What an awesome piece of information to know! Thank you so much for posting this! I know it wasn't easy, but your disappointment will help others learn, so something good has definitely come out of this situation! :)!
Hi!
We always learning and teaching, life has ups and downs. Now I understood what is '' no pain no gain ''! Just hope it really help others since I don't want this to be happened again on me, even on anyone! :')
@AJun
Yes, I know what you mean and I'm sure you will be more aware from now on so you can steer clear of any wrongdoers! I do sympathize with you.
We all actually understand this! I do believe that wrongdoers should be never succeeded next time for the same situation! Thanks for your conversation with me, could feel better now than just now! :D
@AJun
Sorry to hear that Ajun!
I do transfer my payments to my bank prior to providing my service to clients. I work hard to provide an awesome product and so far I have not had any issues.
Hi!
Glad to hear that your workflow is smooth that way! May I know are you using PayPal too? I am using it because PayPal provides ease to international organization!
@AJun
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Sorry to hear like this because I had with PayPal positive experience when they returned ten hundred dollars. Can you call them and explain the situation? It is wrong when you do not have the money back, and your item disappeared. It means that they stole it.
Hi,
I think actually it's my fault because I didn't read their user agreement properly which causing this pathetic situation happened.... From now on I should improve the workflow while processing payment with PayPal. May I know what is your experience with them? Is there anything could improve for this kind of frauds? You should have a lot of experience than me in this matter! :)
@AJun
Hi, before WA I looked for mentors to learn how to navigate in the online world. I met one through Warrior forum. I paid for him ten hundred dollars. He lives in Australia. I did not have experience regarding what is right and what is fake. I found out that he is not what he pretends to be. Short story: he refused to return money despite that I did not use any of his services. I was ready to dig him from bushes or desert somewhere in Australia. I called to PayPal, explained the situation, and they returned money right away. This scammer told that PayPal never returns money for digital products.
One thing that as everywhere in life we need to check few times when making important decisions.
Cheers:)
Wow what an unbelievable experience for me! Now PayPal covered digital products for their Buyer! You are in a reverse position from me lol! Thanks for the sharing Nemira! I appreciate this! Cheers! :)
@AJun
I had this experience three years ago:)