How to eliminate credit card payment option?

[openworld]

Hi, All,

Is there anybody out there who could show me a way to disable credit card payment option for my PayPal account? I could do it because of chargebacks, which not only steal my money but also bring extra fees. I'd like to accept only instant PayPal payments from other PayPal accounts, but not from credit cards.

I heard that new PayPal API allows to eliminate credit card payment option, but as far as I can see API examples, there is an option for buyer to create a new PayPal account at the login page. Clicking this link buyer is taken to a web page, where credit card payment option still exists. So, I'd like to disable such option completely. No new accounts creation options when anybody pays to me! Just login to an EXISTING PayPal account and nothing more!

Is it yet possible?

Thanks.

[surplusdealdude]

You're not allowed to refuse CC payments if you take paypal.

[openworld]

Another question - is there any way to detect it from the IPN or PDT information if buyer used a credit card but not PayPal balance to purchase an item? I only see an eCheck payment type, but it is not the same as a credit card payment.

Thanks.

[surplusdealdude]

Nope, because then sellers might refuse payments that they could tell come from cedit cards.

[openworld]

I like this company!

Isn't it a seller right to choose whom to sell or not to sell seller's property? PayPal looks like a casino, which always wins. Getting billions of income PayPal at least could either improve their antifraud service or at least cover chargeback fee from the income. Chargebacks take not so big percentage of orders fortunately. Why seller should pay for chargeback, whereas chargeback is arising completely from PayPal antifraud service bad functioning?

Really -

"PayPal - the safer and easier way to steal"

[surplusdealdude]

Isn't it a seller right to choose whom to sell or not to sell seller's property?

The right is not unfettered.  If you choose Paypal, you take the entire package.  If you do your job as a seller correctly, the credit card won't be an issue.

I have done more than 2,200 transactions with Paypal and never once lost a dispute or a chargeback.

Why seller should pay for chargeback

You can fight and win chargeback situations - I have and others have.  And Paypal helps you on that.

[openworld]

> I have done more than 2,200 transactions with Paypal

> and never once lost a dispute or a chargeback.

The amount itself worth nothing. It is not strange if you're selling physical goods. You ship them and always can get your item back in the worst case. You never lose your item or money. Selling electronic goods like software licenses we have completely different situation. The buyer wishes to get the license and activate the software instantly, otherwise he/she will choose a competitor's software. Therefore CD/DVD shipment is not a solution.

> You can fight and win chargeback situations -

>I have and others have.  And Paypal helps you on that.

PayPal's seller protection polisy is based on shipment. Therefore it doesn't cover electronic goods by default. It is almost impossible to win a chargeback dispute if the claim is "unauthorized account use".  I've done around 1,500 transactions and have around 1 to 2 percents of chargebacks. You'll answer - it's a small amount. I can agree but it is more than I have at E5, where I process credit cards.

I need PayPal just for instant PayPal payments from a customer balance. I don't need yet another credit card processor even if processing fee is lower than E5 has, taking into account much worse antifraud protection quality at PayPal.

If you know a way to win chargeback if you sell an electronic product then I'd be just happy to hear about it.

Thanks.

[surplusdealdude]

I'm wondering why you're using Paypal at all, then.  It's really badly suited for your needs unless you think the 1-2% loss rate is acceptable.

I'd look around to other payment systems like Alert Pay and so on.  They're not as popular as Paypal and I don't know anything specifically about them, but I'd be investigating them if I were you.

[surplusdealdude]

If you know a way to win chargeback if you sell an electronic product then I'd be just happy to hear about it.

Someone here was discussing a system where you coul prove delivery of a virtual item.  I don't remember the name, but here's a place to start;

http://www.google.com/search?hl=&q=prove+delivery+of+a+downloadable+product&sourceid=navclient-ff&rl...

The CC companies aren't out to gore the seller - they're interested in making a fair decision if you can supply the proof.  It might be an idea to take some of these "proofs" and discuss them with the CC dispute resolution people and see if they're acceptable.

Just an idea.

[openworld]

> I'm wondering why you're using Paypal at all, then.

Because of its popularity, of course. My customers asked about PayPal payment option explicitly. Now I have E5 as a CC/Wire Transfer/Other payment methods and PayPal for PayPal payments, though E5 now supports PayPal too. E5 margin fee is greater than PayPal's 2.5/3.5 %. The absolute difference may be as big as $10, Therefore I still support PayPal payment option at the web site. I just consider CC payment option at PayPal as a sort of abusing. Though I understand that eBay (for example) is where such option is a big advantage.

> The CC companies aren't out to gore the seller - they're interested in making a fair decision

> if you can supply the proof.  It might be an idea to take some of these "proofs" and discuss

> them with the CC dispute resolution people and see if they're acceptable.

Just an example from the real life. A customer activates the license then claims chargeback. I provide PayPal with the activation data including IP address, which belongs to the same city that customer has in his post address. PayPal answers: "We can do nothing here, but if you wish you may initiate a police investigation". Big Thanks!

AS for me, I remember the only case when chargeback was won but I even don't know why, because I always provided PayPal with the same information.

Virtual item receiving proof is an interesting idea, and I'll investigate it.

Thanks.