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Okay first off let me say that if you can use other payment processors do so. Only use PayPal as a last resort for selling or buying digital goods. Unfortunately its the number one processor used by most people so I am stuck using it daily.
Thought I would share a couple methods that I been using to protect myself. This may have already been shared but seen someoneâs post earlier and thought to post this.
The good thing about PayPal is that you are protected if you can provide shipping information even against fraudulent transactions. Now here is the bad part about PayPal. If you are a digital seller which includes graphic services, domains, eBooks, writing, or anything else that can't be shipped you may be screwed if the buyer ever decides he wants his money back.
If the buyer does a chargeback via his credit card company often you will lose your case either way unless itâs a shipped item and can providing shipping.
Most sellers lose their case for digital products as well because you cannot provide shipping information but now there are a few solutions to this. Protect yourself and your hard earned money.
First thing that many people deal with each day is getting reversed on after they submit the digital goods or complete a service. When the buyer reverses they usually use the ânon receiptâ or âitem not as describedâ. Of course when you try to reply it gives you 3 choices 1. Provide shipping 2. Provide proof that you refunded them already or 3. Accept and will refund. So how are you going to respond here other than a bogus tracking number and type in the box which PayPal probably doesnât even read?
The first thing to keep in mind is to always send invoices. This allows you to choose the type of payment this is for Services, Goods, etcâ¦.
First option:
Send an invoice requesting payments for goods.
This may be a bit costly but if you are selling a lot of products and making decent money itâs worth it. Almost all cases with tracking information is won in the sellers favor so if you are able to provide accurate shipping this would save you a lot of hassle. So how do you provide shipping for a digital product you may be asking yourself?
You are going to send a CD with information about your sale, or backup copy of anything service you have provided such as graphics, articles, copyrighting, or anything else. When you get to the post office you are going to send by certified mail which will usually cost around $5 - $10 depending on your location. Now by sending certified mail you will be able to provide shipping. As soon as you have received your tracking number immediately log into your PayPal and add it to the sell which can be done any time after the transaction took place. Then if the buyer decides to reverse your tracking information is already in place.
Second option:
If you are selling cheaper items or services itâs not worth the effort to actually ship anything because you are not making a profit so you will need a new option.
Again you will send an invoice but this time it will be for services. In the subject line it will be for the service that you are offering or product such as Domain Sale, Graphic Design Work, Content Writing, etc⦠and in the summary area you are going to put in big bold letters VIRTUAL GOODS.
Now if at any time the buyer does a reversal the first stage will be for the buyer & seller to converse to resolve the issue. At any time either party can escalate it to a claim which usually puts a hold on the funds that are in question. Now I recommend you escalating it as soon as possible because 99% of the time unless itâs a credit card reversal or unauthorized the dispute will be automatically closed once the claim has been escalated.
The reason this happens is because PayPal does not get involved with digital good transactions. They have something in place to automatically detect the VIRTUAL GOODS in the transaction.
Other tips to keep in mind:
1.Always send invoices
2.Choose the correct options. If you plan on shipping a CD then always choose goods, otherwise choose services and make sure to put VIRTUAL GOODS in the body.
3.Try to avoid dealing with people who plan on paying you with credit cards.
4.Try to have payments made with PayPal balance.
5.Try to avoid dealing with people who do not have a verified PayPal.
6.Once someone has tried to reverse on you and PayPal has come to a decision they cannot reverse on you again for the same claim unless they go through their bank or Credit Card Company.
7.If itâs possible use a different payment processor.
Thought I would share a couple methods that I been using to protect myself. This may have already been shared but seen someoneâs post earlier and thought to post this.
The good thing about PayPal is that you are protected if you can provide shipping information even against fraudulent transactions. Now here is the bad part about PayPal. If you are a digital seller which includes graphic services, domains, eBooks, writing, or anything else that can't be shipped you may be screwed if the buyer ever decides he wants his money back.
If the buyer does a chargeback via his credit card company often you will lose your case either way unless itâs a shipped item and can providing shipping.
Most sellers lose their case for digital products as well because you cannot provide shipping information but now there are a few solutions to this. Protect yourself and your hard earned money.
First thing that many people deal with each day is getting reversed on after they submit the digital goods or complete a service. When the buyer reverses they usually use the ânon receiptâ or âitem not as describedâ. Of course when you try to reply it gives you 3 choices 1. Provide shipping 2. Provide proof that you refunded them already or 3. Accept and will refund. So how are you going to respond here other than a bogus tracking number and type in the box which PayPal probably doesnât even read?
The first thing to keep in mind is to always send invoices. This allows you to choose the type of payment this is for Services, Goods, etcâ¦.
First option:
Send an invoice requesting payments for goods.
This may be a bit costly but if you are selling a lot of products and making decent money itâs worth it. Almost all cases with tracking information is won in the sellers favor so if you are able to provide accurate shipping this would save you a lot of hassle. So how do you provide shipping for a digital product you may be asking yourself?
You are going to send a CD with information about your sale, or backup copy of anything service you have provided such as graphics, articles, copyrighting, or anything else. When you get to the post office you are going to send by certified mail which will usually cost around $5 - $10 depending on your location. Now by sending certified mail you will be able to provide shipping. As soon as you have received your tracking number immediately log into your PayPal and add it to the sell which can be done any time after the transaction took place. Then if the buyer decides to reverse your tracking information is already in place.
Second option:
If you are selling cheaper items or services itâs not worth the effort to actually ship anything because you are not making a profit so you will need a new option.
Again you will send an invoice but this time it will be for services. In the subject line it will be for the service that you are offering or product such as Domain Sale, Graphic Design Work, Content Writing, etc⦠and in the summary area you are going to put in big bold letters VIRTUAL GOODS.
Now if at any time the buyer does a reversal the first stage will be for the buyer & seller to converse to resolve the issue. At any time either party can escalate it to a claim which usually puts a hold on the funds that are in question. Now I recommend you escalating it as soon as possible because 99% of the time unless itâs a credit card reversal or unauthorized the dispute will be automatically closed once the claim has been escalated.
The reason this happens is because PayPal does not get involved with digital good transactions. They have something in place to automatically detect the VIRTUAL GOODS in the transaction.
Other tips to keep in mind:
1.Always send invoices
2.Choose the correct options. If you plan on shipping a CD then always choose goods, otherwise choose services and make sure to put VIRTUAL GOODS in the body.
3.Try to avoid dealing with people who plan on paying you with credit cards.
4.Try to have payments made with PayPal balance.
5.Try to avoid dealing with people who do not have a verified PayPal.
6.Once someone has tried to reverse on you and PayPal has come to a decision they cannot reverse on you again for the same claim unless they go through their bank or Credit Card Company.
7.If itâs possible use a different payment processor.
