How do you deal with PayPal chargebacks?

[vladimir]

What's the best way to deal with PayPal chargebacks? Should you just refund the money even if it is outside of the refund policy? How do you tell them it's a service item and how do you prove purchase?

 

[Andrius]

It depends on situation. If the money back follow all rules - we refund without any questions. If we cancel services due spam or other illegal activity and client wants refund - we refuse to return the money. If the user do chargeback by itself, we always process the PayPal dispute and almost always wins.

 

[easyhostmedia]

If the money back follow all rules - we refund without any questions.

This has nothing to do with chargeback, if you refund within MBG period then how could they start a chargeback as they have been refunded.

If we cancel services due spam or other illegal activity and client wants refund - we refuse to return the money.

You need to place this in your TOS and then if they do chargeback you will need to prove to paypal they have acted illegally and against your TOS which you would need to prove these were the TOS they had accepted and agreed too

If the user do chargeback by itself, we always process the PayPal dispute and almost always wins.

It is not that easy, the order may have been ordered and paid with a stolen card or stolen Paypal account and then genuine card hold or paypal account holder makes a chargeback on the money as they never authorised it. in that case you would never win.

If you get a Chargeback from any payment processor ALWAYS adhere too it and refund the money as if you dont they your account will be placed in a negative balance if you dont have the full funds in your account and if you do have the full fund then it would have been taken back out your account anyway.

then dispute the chargeback with evidence to back it up

 

[cheapdedicated]

You may contest the charge back but most times if the payment was made from an account fraudulently you will have to make honor that charge back.

 

[easyhostmedia]

You may contest the charge back but most times if the payment was made from an account fraudulently you will have to make honor that charge back.

I had one such chargeback, but they guy was an idiot as after placing the chargeback which paypal took the funds off me and placed my account in a negative balance and threatened me with debt collections if i did not bring the account to a positive standing.

The supposed real card holder emailed me threatening to send guys round to break my legs for taking money from him without authority, but what he did not bank on was WHMCS logs IPS when orders are placed and when accounts are accessed.

The IPs WHMCS logged was the same as in the email header of the email i received from the supposed real card holder.
I passed this info onto paypal who immediately reversed the chargeback as the confirmed the IP i provided them was the same they had for the user, so it was clearly fraud on their park. they also advised me to pass my email from him onto the police as it was a physical threat, which i did and the guy responsible got an 18 month sentence.

 

[LarsJ]

I have personally received "minor threats" but nothing as extreme as your case. We've had bad people use horrible language where techs informed me he needs to go...

The IP matching is vital in proving services rendered to clients who claim they never received services and matching things up such as emails. (Send emails to the same email used to place the order!)

Also, every order needs a confirmation that client agreed to TOS, AUP and SLA.

Confirmed PayPal accounts also help significantly in our experience with cc fraud.

 

[easyhostmedia]

I have personally received "minor threats" but nothing as extreme as your case. We've had bad people use horrible language where techs informed me he needs to go...

The IP matching is vital in proving services rendered to clients who claim they never received services and matching things up such as emails. (Send emails to the same email used to place the order!)

Also, every order needs a confirmation that client agreed to TOS, AUP and SLA.

Confirmed PayPal accounts also help significantly in our experience with cc fraud.

Also IP headers in any emails they send you will show their IP and hostname they have used to mail you and most people will just send through their own ISP, so will be the same IP and used to place orders etc.

I once had one client i terminated for non payment which normally after they get terminated i will send them a Letter Before Action, which adds extras to outstanding invoice. my final overdue invoice and in my TOS state after an LBA, debt collections will be started ( i normally dont go this far) just after LBA i cut my loses, but this one client started calling me and emailing me with insults and abuse because of the LBA, so to teach him a lesson i went the who hog, small claims which he ignored , so sent an judgement against him, which he admitted to the courts he owned the money, but refused to pay as i took his site down, so i handed it to the court collection service. this got him to pay, but the £60 he owned me ended up costing him £250 by the time legal fees etc were added.

 

[vladimir]

Wow. Thank you so much for all this great feedback. I kinda still want to address the fact on how to prove that your services have the same affect as you would a physical item. Would you send paypal screenshots of the service you provided to the client or how would you do this?

 

[neq3host]

Well if someone want a refund of a product so for example, a guest buy a package and abuse it and you refuse the payment back then you must have a good text with photo's, make sure also you have a full documontation ready for full information to paypal to winn a chargeback.

 

[vladimir]

What do you do if someone ordered the hosting, paid for it, they got the hosting, and then 5 days later they requested a chargeback, but they did not submit a ticket or request cancellation. Do you issue the refund and slap a fee for not attempting to contact you before making a chargeback, or do you just refund and move on. The reason why I ask this specific detail is. For the past few days I have been having those type of orders.

 

[easyhostmedia]

What do you do if someone ordered the hosting, paid for it, they got the hosting, and then 5 days later they requested a chargeback, but they did not submit a ticket or request cancellation. Do you issue the refund and slap a fee for not attempting to contact you before making a chargeback, or do you just refund and move on. The reason why I ask this specific detail is. For the past few days I have been having those type of orders.

depends what you mean by Paypal Chargeback.

If they have cone through paypal resolution and stated

1) 'they never received the item' they you just dispute this with paypal and provide evidence that they have received what they ordered and used it.
2) 'unauthorised use of their account' then this is more tricky as paypal would have frozen the payment and given the buyer the money back.

i case 2 i would refund the money as its less hassle.

but either case i would immediately suspend the clients account and then email them giving them 48 hrs to reply and explain themselves or the account will be terminated, if they dont reply with 48 hrs then terminate their account and block the user and their IP'.


you should have it written in your TOS that any payment disputes will mean account suspension and possible termination without warning.

 

[vladimir]

depends what you mean by Paypal Chargeback.

If they have cone through paypal resolution and stated

1) 'they never received the item' they you just dispute this with paypal and provide evidence that they have received what they ordered and used it.
2) 'unauthorised use of their account' then this is more tricky as paypal would have frozen the payment and given the buyer the money back.

i case 2 i would refund the money as its less hassle.

but either case i would immediately suspend the clients account and then email them giving them 48 hrs to reply and explain themselves or the account will be terminated, if they dont reply with 48 hrs then terminate their account and block the user and their IP'.


you should have it written in your TOS that any payment disputes will mean account suspension and possible termination without warning.

Ok. Thank you for that.

 

[neq3host]

What do you do if someone ordered the hosting, paid for it, they got the hosting, and then 5 days later they requested a chargeback, but they did not submit a ticket or request cancellation. Do you issue the refund and slap a fee for not attempting to contact you before making a chargeback, or do you just refund and move on. The reason why I ask this specific detail is. For the past few days I have been having those type of orders.

Well so long they doesn't request on your site but it does on paypal it self then I will pay the user the full amount back. Only by abuse I am put their money back guarantee off and set it as invaild.

 

[easyhostmedia]

Well so long they doesn't request on your site but it does on paypal it self then I will pay the user the full amount back. Only by abuse I am put their money back guarantee off and set it as invaild.

If a user abuses your services on purpose then they will not bother making a chargeback, they will just move onto the next host. the only think to look out for is if they used a stolen card or stole paypal account and they you will get a chargeback from original car holder. then paypal will take the money out of you account

To user vladimir, you will get some users who will not submit cancellation requests or inform you they are leaving, the first you will know is when their account is terminated as they have not paid the next invoice. If this happens i will check whois records to see what nameservers the domain points too and if they point elsewhere i see when the whois record was changed. I will always leave unpaid invoice open and active as if this user tries to sign up with you again then you can stop them until the outstanding invoice is paid

 

[neq3host]

Well so long you got vaild documents like text and photo's (Make's the proof completely real!) Once you submit this to paypal once the other part has opened a claim then you win mostly!

 

[emyhost]

Whenever I encounter such situation, I will provide all the details to paypal according to their requirement. Meanwhile, I will try to contact the customer to clarify the issue with them, if they are not satisfy with our service and found they are right, normally I will request them to cancel the charge back and will refund it to them accordingly, or else, what we can do it just provide the necessary info/documents to paypal and let paypal to judge accordingly.

 

[cheapdedicated]

Whenever I encounter such situation, I will provide all the details to paypal according to their requirement. Meanwhile, I will try to contact the customer to clarify the issue with them, if they are not satisfy with our service and found they are right, normally I will request them to cancel the charge back and will refund it to them accordingly, or else, what we can do it just provide the necessary info/documents to paypal and let paypal to judge accordingly.

The best one can do is alwas to just abide by Paypals demands thats all one can really do. Many times you will actually lose the case even if you provide evidence as long as paypal is sure that the account that paid you was compromised.

 

[hostdare]

I have won most of the paypal disputes,the key is that you need add as much as proof you have against the customer be it customers IP/address,fraud details,spammer details .

 

[cheapdedicated]

I have won most of the paypal disputes,the key is that you need add as much as proof you have against the customer be it customers IP/address,fraud details,spammer details .

Yes you will win many if its the client trying to get back their money BUT almost always you will lose if the client used a paypal account that is not theirs to pay you. So If they use a stolen account and the real owner is the one pushing for the chargeback that you will hardly ever win

 

[hostdare]

yes,for hacked account payments,there is less chance of winning though.