Hello, I'm web designer and was planning to offer customers the paypal option, however after reading regarding that there is no seller protection for virtual items, I would like to confirm if a service like mine doesn't have protection. So if for example I make a website for a customer, I deliver correctly and everything is fine, and then they request for a refund with no justification after 25 days, I have no protection in any case, even showing proof of my services?
Yes that's another option. However I still have a doubt, how is it possible that it Paypal doesn't protect sellers for virtual items but still some services that are selling for instance, domains, like Namecheap, have available the option for customers to pay them via Paypal? Do they have more protection than smaller sellers somehow?
They have a business account and have properly set up payment processing and have PayPal checkout integrated into their website. Casual payment request/invoice for digital services payments are not. If you want to set up a legit website to process payment for your services see:
If your customer files chargeback,it will hit Paypal since PAYPAL is the one who holds the merchant account to accept credit card.
Paypal will notify you a chargeback has been filed and asked you to present your story and pass it on to his credit card issuer who decides the outcome.
Paypal would not tell you what the other party said,if you lose ,you will have to pay a chargeback fee of $20.
No one can protect you from any chargeback,you have to protect yourself.
most seller protections are meant for tangible goods,like delivery confirmation,signature confirmation,
You are providing a service ,not merchandise.
If you have the clout and leverage,it is better to ask for check,postal order or cash,you may ask for a deposit via Paypal,but the rest will be check or money order upon completion.
I understand that I have to protect myself from any chargebacks no matter if I process payments via paypal or any cc processor, but the only thing I don't understand about Paypal is why they simply aren't clear enough about this, sellers with digital goods should not use Paypal as its payment method. Do you know that there are forums out there talking about how they can always win disputes for digital goods when sellers are processing through Paypal? Paypal simply should state this clearly: We do not recommend you to sell your digital products & services through us because if there is a dispute you will always lose. That would be the way to respect sellers that trust this company.
PayPal isn't going to give you business advice about what you should or should not do; that's your own decision. PayPal only needs to state in the policies what type of sales provide buyer and seller protection and PayPal makes it very clear that protection is primarily for tangible items. You just need to evaluate your own busienss risk involved with your own type of product/service.
I understand that I have to protect myself from any chargebacks no matter if I process payments via paypal or any cc processor, but the only thing I don't understand about Paypal is why they simply aren't clear enough about this, sellers with digital goods should not use Paypal as its payment method. Do you know that there are forums out there talking about how they can always win disputes for digital goods when sellers are processing through Paypal? Paypal simply should state this clearly: We do not recommend you to sell your digital products & services through us because if there is a dispute you will always lose. That would be the way to respect sellers that trust this company.
when you sign up with Paypal,there is terms of agreement,did you read ?
