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Avoiding Charge-backs on selling of bitcoins


Avoiding Charge-backs on selling of bitcoins

Hello, I would like you to offer guidance on ways of avoiding charge-backs in the sale of bitcoins. Advise on the necessary documents to request the buyer that will be helpful in case a charge-back is initiated on unauthorized transaction.

Esteemed Advisor

Re: Avoiding Charge-backs on selling of bitcoins



Most people would send screen shots and conversations, emails and digital logs, IP addresses, date of item or service delivered but the bottomline is this, who you sell to may not be who paid, so the account owner is filing chargeback. And currency might not be covered by seller protection:


5. Items/Transactions not Eligible for PayPal Seller Protection.

The following are examples of items/transactions not eligible for PayPal Seller Protection:

  • Claims or Chargebacks for Significantly Not as Described.
  • Items that you deliver in person, including at a point of sale.
  • Digital goods and licences for digital content.
  • Items equivalent to cash (including, without limitation, gift cards or vouchers).
  • Gold Bullion.
  • PayPal Direct Payments (including Virtual Terminal Payments and Website Payments Pro/Plus payments).
  • Mass Payment / Payouts.
  • Counterfeit goods.
  • Items that are not shipped to the recipient address. If you originally ship the item to the recipient address but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
  • Donations.
  • Financial products and investments.
If you lose the chargeback, PayPal will follow policy and will solely decided whether to cover you or not. You sell digital goods at your own risk. Always check if seller protection is compatible with your business model.

Kudos & Solved are greatly appreciated. 🙂