Hello,
Does anyone have any suggestion on any way to block incoming payments from specific PayPal accounts (by their PayPal email)? As a merchant selling online services, combating fraud is a huge hassle, considering PayPal doesn't appear to have any fraud tools to protect sellers, mostly for intangible items.
My situation is as follows - A user will make a payment for a service, their service will get cancelled / terminated for using the service for malicious intent (criminal use or general service abuse). Their account on my merchant website will be closed permanently and their IP address banned. However, the same user will create a new account with fake info (typically via fake name generator) and register a new account within hours, some people do this every day for weeks or months, and they pay with the same PayPal account. This turns into a cat and mouse game.
The kicker is that the user will dispute the PayPal payment each time since we refuse them service for them using our service for malicious purposes. If the user is refunded on my end, they will just create another fake account a day later and try to pay again. After one or two times I end up not refund them and keeping the money to try to push them to quit doing this. However they open a dispute, then this wastes both my time and PayPal's time. Some individuals will do this dozens of times.
PayPal offers no options to block users like this from making payments, so a user can send a payment, dispute it, send another payment, dispute it, and do that dozens of times. PayPal will not close their account or warn them, and multiple e-mails to the PayPal AUP team do not help. The PayPal API is also useless as the API has no options to reject payments at checkout or anything similar.
Does anyone have a suggestion on a solution that's outside of PayPal? I've talked to many freelance developers to integrate a solution into my billing software, but all of them think it is not possible at all, or and automatic refund would be the only way, but this would not prevent them from just sending another payment.
TL;DR - When will PayPal offer actual fraud protection features to merchants? Is there any way to stop PayPal accounts from sending payments to me? PayPal support is not helpful over many months and just appears to be using canned responses.
