posted on June 24, 2005 04:59:22 PM new
It's been awhile, but I am posting this info again as a good reminder to sellers and an eye opener to those who don't already know (I learned the hard way losing over $300 in two payments)...
Preventing Credit Card Fraud via Paypal:
Only accept PP payments from USA "Confirmed" accounts. No International, No unconfirmed. No exceptions.
Only ship to the address that is confirmed with Paypal. You are at risk of a chargeback if you send it elsewhere (like where a thief might live). Do not ship to a "gift address" otherwise you are at risk!
Offer Bidpay or accept International/Postal Money Orders instead.
Make sure to use Delivery Confirmation or Signature Confirmation (value over $250) as proof of delivery. Delivery Confirmation is free if you use Stamps.com, Endicia, Paypal, or USPS websites to print labels.
Chargebacks suck! You lose the item, you lose the money and you pay $10.00 to Paypal for it. It is too costly and too easy to avoid.
My opinion is that Paypal is simply an accomplice to the crime when they continue to allow this to happen. They have the power and ability to confirm all accounts, whether International or not. They choose not to because they make more money on a chargeback for payments under $300 than if they processed the payment for the same amount. If you know others who sell on ebay and accept Paypal, make sure to let them know about this. Also, let your bidders know as well. The more knowledge all of us have about this, the more likely Paypal will change their policies to protect everybody instead of just themselves.
posted on June 24, 2005 05:17:50 PM new
First,Paypal cannot confirm most overseas addesses except a few countries,AVS address verification is offered by an organisation which rely on most cc issuers reporting and updating their cardholder billing address.
Some small issuers such as local credit unions just do not have the resources to participate,hence you see some addr not verified even tho it is the cardholder's billing address.
If you have your own merchant account ,AVS could cost you a dime per transaction.
If you are using paypal,thats part of the transaction fee you paid Paypal,what is it now 35 cents??
Second,Paypal does not make money on chargeback,in fact it is a chore for its staff to deal with your bidder's credit card issuer on your behalf.
10 dollars fee is the lowest in the industry,usually if you have your own merchant account,it ranges from 25-50 dollars per chargeback.
Paypal does not keep the fee,it goes to its merchant account provider .
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Eat grass,kick ass,never go belly up!
posted on June 24, 2005 05:44:05 PM new
Not according to the rep I spoke with this past week. I mentioned it to him and he claims it goes to Paypal. I had a problem with a bidder who paid using a confirmed account, but their address would not print using Paypal's USPS system. The bidder didn't believe me, so I called Paypal about it. In the process we discussed the chargeback policy because I had asked if any changes were made in the Seller Protection Policy I should know about.
Beyond that, Paypal does have the ability to confirm accounts at the very least against the eBay accounts that are registered with credit cards people are using to make payment. In this day, Paypal needs to do everything possible to make sure sellers are protected against credit card, account, and identity theft.
[ edited by rustygumbo on Jun 24, 2005 05:45 PM ]
posted on June 24, 2005 05:59:26 PM new
Paypal basically has a merchant account with a bank,and the chargeback fee does not go to paypal the customer,it goes to the bank,that paypal rep does not know what he is talking about.
Paypal may keep the fee and settles with its bank each month.
crosschecking with ebay bidder registration addr,credit card is a good idea,why dont you suggest that ?unfortunately,some of us do not update our ebay registration address and some do not register with credit card,and they dont pay ebay with credit card either.
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Eat grass,kick ass,never go belly up!
The problem is not so much PayPal, but rather the fact that MERCHANTS (us) have virtually NO rights compared to consumers when it comes to CREDIT CARD CHARGEBACKS...
This is essentially embedded in FEDERAL LAW, & the banks bend over backwards with their cc customers...
EVEN IF YOU FOLLOW ALL THE RULES with a PayPal transaction, you STILL take a chance of being screwed by a fraudlent cc transaction...
The PayPal SPP is essentially WINDOW DRESSING...basically a big load of GWB!
BUT: how could it be otherwise?
Do you really expect PP to EAT $200 or $400 or $800 chargebacks just because you shipped to a CONFIRMED ADDRESS, etc,etc,etc???
HERE IS REALITY: if your buyer does a CREDIT CARD chargeback on you for $400, PayPal is gonna hold YOU liable for that moola REGARDLESS of any proof!
PayPal is NOT gonna eat chargebacks!
Obviously, just like the banks, they CAN'T and still stay in busioness!
THEY SUCK IT OUT OF THE MERCHANT!
PayPal is wonderful if used with a little basic common sense, always observing Ralphie's FIRST RULE:
"Never accept a PayPal payment for more than you can afford to EAT"
"I'm going to spend a lot of time on Social Security. I enjoy it. I enjoy taking on the issue. I guess, it's the Mother in me."—Guess Who? Washington D.C., April 14, 2005
posted on June 24, 2005 06:30:27 PM new
WELL SAID,TOM! In all fairness to paypal or any service company,if we are adult enough to sell and make money,we are adult enough to protect ourselves-when you accept paypal payment from intl buyers,you are saying you dont mind a game of russian roulette or you would have sent him to auctionpayment,com.
I have accepted paypal from overseas buyers many times,sometimes i am just too tired to argue with them?? I am sure someday I will pay for it.
-sig file -------
Eat grass,kick ass,never go belly up!
