posted on August 7, 2001 09:02:19 AM new
Are there any business insurance policys to protect against charge-backs? All the CB threads are worrisome, I know it's just a matter of time before I get a fradulent CB.
posted on August 7, 2001 09:10:28 AM new
If you use PayPal and follow the rules, you are protected from all common fraudulent chargebacks.
Even without PayPal, there isn't really any reason to live in fear of fraudulent chargebacks, unless you're selling a product you know is a huge target for crooks or kids without money.
Crooks like things things they can turn into cash (or drugs).
Kids without money like "adult" items, and whizzy electronic gear.
Lastly, never send anything to Romania, Russia, Indonesia, or most of the old Soviet bloc.
posted on August 7, 2001 09:13:19 AM new
RoofGuy: PayPal does not protect you from charge-backs related to dissatisfaction. Their protection policy only protects in cases of non-delivery.
posted on August 7, 2001 09:17:10 AM newEven without PayPal, there isn't really any reason to live in fear of fraudulent chargebacks, unless you're selling a product you know is a huge target for crooks or kids without money.
posted on August 7, 2001 09:17:54 AM new
Let me clarify:
I am very confident in what I sell, and have an open return policy; however, a fraudulent person could/and probably will, do a quality charge-back without contacting me. And based upon threads here, it can be three to six months after the transaction. This is not going to be a buyer with a legitimate complaint, rather a FRAUDULENT one.
posted on August 7, 2001 09:25:40 AM new
Of course, a dishonest buyer would never switch their damaged item for the good one you sent, and claim a "quality of merchandise" chargeback, would they?
posted on August 7, 2001 09:31:20 AM new
My charge back insurance is sweeping my account every night!!! I no longer let money sit in there at all, if I get a chargeback I will swiftly quit accepting paypal and change my email address, athome lets you have five emails!(most of my items are below $25.00 though so I do not worry to awfully much)
posted on August 7, 2001 09:55:35 AM newRoofGuy: PayPal does not protect you from charge-backs related to dissatisfaction. Their protection policy only protects in cases of non-delivery.
Quality of merchandise chargebacks are almost never fraudulent. The buyer must return the merchandise, at buyer's expense. Once the merchandise is returned, there is no fraud.
Fraudulent chargebacks are almost always "unauthorized use of credit card". Sellers are totally protected from these by PayPal so long as they follow the rules.
posted on August 7, 2001 09:59:18 AM newMy charge back insurance is sweeping my account every night!!!
You know, it just doesn't work that way. Not for a merchant account. Not for PayPal. Not for Billpoint. Not for anyone.
IF you end up responsible for a chargeback, the service can bill you for the chargeback. It is a legitimate debt. If you refuse to pay it, it will likely be turned over to a collection agency, and become part of your credit report.
Irresponsibility regarding debts doesn't work for very long.
posted on August 7, 2001 10:01:15 AM newOf course, a dishonest buyer would never switch their damaged item for the good one you sent, and claim a "quality of merchandise" chargeback, would they?
That would indeed be a fraud attempt.
I don't think we've ever read a report of such a thing actually happening, but it's theoretically possible.
If it was a widespread problem, you can bet that the reports would be readable right here.
posted on August 7, 2001 10:06:54 AM new
Well I look at it his way, I always send to a paypal verfied address, so therefore they should protect me(as they advertise), I refuse to take a credit card from an unverfied address, After reading some of these horrific paypal stories. If I get a chargeback from sending an item to a verfied address, Well that debt is paypal's responsibility-not mine. I cover myself by sweeping my account, then PayPal and I can have it out. As far as a credit report goes, if any of my lenders look at a $10- 60 report against my credit, when I pay all of my other bills-(2 mortgages, a car, buisness credit card, ect...)God Bless them
Jen
posted on August 7, 2001 10:07:33 AM newhowever, a fraudulent person could/and probably will, do a quality charge-back without contacting me. And based upon threads here, it can be three to six months after the transaction.
Morgantown, the common fraudulent chargeback goes like this. Crook gets card number from a wide variety of sources. Orders stuff, maybe your stuff. You send stuff. Later, cardholder finds strange charges on the bill and initates a chargeback.
That's how it goes.
Of course the card holder won't contact you first. The card holder had nothing to do with the transaction.
This type of chargeback is totally covered by PayPal for sellers who follow the rules. PayPal protects itself by having strong verification rules.
posted on August 7, 2001 10:15:50 AM new
No one is going to "insure" a seller aginst quality of merchandise chargebacks, for the same reason no one is going to protect seller when seller uses a misleading description.
posted on August 7, 2001 10:20:25 AM new
you know morgantown, you're dead right. Items can be switched. PayPal won't protect you from that. Neither will Billpoint. Neither will anyone else.
posted on August 7, 2001 10:34:42 AM new
I've read NUMEROUS reports on AW, as well as on the eBay chat boards, about buyers who RETURNED the goods, after switching a few parts that they needed.
Anyone that doesn't think this has already happened with PayPal, is living in La-La land.
Why do you think invisible ink pens sell so well on eBay?
I understand Morgontown's concern. I too sell high $ antiques & I'm not too keen on a $500 chargeback coming back to bite me on my arse 5 months after I shipped it.
For me it was simple, I no longer accept CC payments except through BidPay.
posted on August 7, 2001 10:47:04 AM newI've read NUMEROUS reports on AW, as well as on the eBay chat boards, about buyers who RETURNED the goods, after switching a few parts that they needed.
In the month since "the purse" (which did not involve fraud, but did involve a quality of merchandise chargeback), no reports of any such fraud have been observed.
Business has risks, including the risk of fraud. One manages such risks rather than eliminating them. The unlikely risks one lives with. What about the risk that the postal clerk will mis-label and then steal the package? Could happen. Probably HAS happened at some time and place. However, we manage this risk by ignoring it rather than eliminating it, because it is unlikely in the context.
posted on August 7, 2001 10:59:14 AM newIn the month since "the purse" (which did not involve fraud, but did involve a quality of merchandise chargeback), no reports of any such fraud have been observed.
Ok, now that I'm finished laughing till my sides hurt .................
I've been posting/reading AW since AW started. In that time I've read scores of reports from fellow eBay sellers about how someone pulled [or attempted to pull] a switcheroo. I've also read scores of reports about the same thing on the eBay chat boards.
I've been selling on eBay since 1997.
I'm not saying it happens frequently, but it sure as hell is happening.
eBay once told me that less than 2% of all registered users on their site actually post on the chat boards. Any guess as to how many registered eBay users post here?
Just because you're not reading it here, doesn't mean it's not taking place.
