How to deal with Paypal with Website deals

[TeamFreedom]

Hi guys,
I want to give you some tips to dealing with PayPal and taking payments for them. How to COMPLETELY safeguard yourself. After this, don't ever use this as a method of payment. If your buyer doesn't like it. Then they aren't the buyer for you.

The payment is $3,000 or roughly in that area.

1. Call PayPal, be sure all your information is updated. Let them know you have a payment incoming, Make sure they notated your account. Ask if they need additional data. If they need anything.

2. When buyer sends payment, be sure, they have cancelled any ways they can drop the payment or charge you back. Also mail them a CD with delivery confirmation, JUST DO IT. I don't care if you laughed with a buyer, shared common interests. He's your pal now, but when he has issues or he isn't being instantly gratified, all hell WILL break loose.

3. After payment has been rendered, call paypal, notate that you have sent him files, that this was a digital item. That you have followed all the steps in order to protect yourself.

Having chatted, sometimes buyers will covertly if they are corner cutters try to list this as a goods. IT"S NOT A GOODS. Well, it's a digital goods, but not the GOODS that are covered in the TOS.

4. Make SURE PayPal has notated the account.

Why am I writing this, I sold this website, guy has the AUDACITY to say that he is bored with the site and it's no longer in his interest. I am sorry, but your salt is worth more in your margarita than in his "boring" margarita.

Here is the kicker, I'm a contracts type of person. I have a degree that I hate but its useful. I wrote in the contract the the guy failed to see or pay attention to, should he want a refund; He is to PAY ME 6 times back, so basically. He will owe me the money that he has made off the website times 6.

So thinking he was better than me, he attempted to charge back the money & try to keep the site. He was shot down like .. well I would input a joke but I am not in a fun humor mood.

Protect yourself, use other methods of transactions. Utilize a contract, those uphold more than you'll know.

[crabfoot]

Eh? You don't say what the disk should have on it - and in England, if you can hold that disk in your hand it would be goods.

There are other ways - put the info on a secure web store for the customer to download. I see your point, but don't give away the opportunity - Paypal are always "right until proven wrong", it can be very hard to argue with them.

Just send the access details in a registered snail mail - not an email. If you want security, make up a duplicate in front of a witness, get the witness to sign across the envelope seals, send one to yourself and one to the customer. Don't open your copy.

[TeamFreedom]

Yeah I spent 2 hours arguing for a client in regards to a dispute. I won and have been branded in my office today as having phone rage. I find it humorous, but at least we won. That's all that mattered to me.

I want to take them out, so bad. wow.

[FinanceGuy]

PayPal is a nightmare due to chargeback issues. As for delivering physical goods, that opens up a ton if issues. And yes, a disk may be considered a physical good and now may have sales tax applied to it if the buyer is in state (a concern in populous states like CA, NY, TX, etc.). Also, the chargeback can still be for "goods not as described" as opposed to "goods not delivered" so you still could be susceptible to a chargeback.

However, a customer can, I believe, contractually waive their chargeback rights and if you put it in a contract (always do a sales contract for over $1,000) it may carry some weight with PayPal. I haven't had to rely on it so can't speak to whether it would work or not.

As for paying with PayPal, other side. Never agree to waive chargeback rights and always use a credit card. I got scammed by someone who had used another site's GA and photoshopped in the site name he was scamming with. I did a chargeback and got my $500 back. Also, since I was a business customer and used a business credit card, I spoke with business chargeback reps who are very professional.

So basically, chargebacks are good as a buyer, awful as a seller. And PayPal won't likely get into the dispute over revenue, traffic, etc. Too easy for the seller to say the switch to a new server caused a traffic drop, etc. Plus, since the sale is "Card not present", PayPal may or may not be much help either since for CNP transactions, the seller (you) is starting out at a disadvantage in the chargeback process.

For PayPal, I immediately draw the balance out to my checking account as soon as it clears so that if there's a chargeback and your account is frozen, you're in a slightly better spot. I don't know if PayPal can go in and ACH the money out of your checking account so this may not protect you.

TL;DR Chargebacks suck for sellers, are great for buyers. And don't keep money in your PayPal account or on a PayPal debit card.

PS I'm not a lawyer so take the above with that caveat...