Paypal's policy in case of a dispute when selling digital products

samatras
New Community Member

Hey everyone, I have no idea if this issue has ever been addressed here. I'm selling digital products on my website (ebooks and courses), and obviously, one of the payment methods is Paypal.

 

While this issue is not a very regular thing, it only happened twice, I still find it very disturbing and unethical, especially how Paypal responds to it.

 

So this year, there were two people who purchased my ebook, and then they filed a dispute through Paypal, claiming they never received the ebook.

 

Obviously, it is not true, I'm not going into too many details, but they have several ways of accessing the files: 1. they need to create an account on my website so they can log in any time to download the files 2. there is a download link right after purchase 3. they get an automated email with the download link right after purchase 4. I even sent them a direct download link (again) after they filed the dispute.

 

But these people didn't contact me for support, they went directly to Paypal, filing a dispute. I even have proof that one of them logged in to my website, and downloaded the file TWICE.

 

In both cases, Paypal decided in favor of the buyers. Although Paypal didn't take the money from me (the seller), they refunded the customers at Paypal's cost, I still find this decision VERY disturbing.

 

Just think about it. This means that you can buy any digital product, and lie that you never received it and Paypal will decide in your favor.

 

What will happen if customers learn that they can get just get digital products for free? Because all they have to do is purchase them through Paypal and then lie about not receiving them.

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1 REPLY 1

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@samatras 

 

Well, that’s what PayPal Seller Protection is and does. PayPal covers you if you have sufficient proof of delivery. It doesn’t necessarily mean the buyer wouldn’t get their money back either as good will or other reason known only to PayPal. There are cases where PayPal does not cover the seller and the buyer is refunded as well.


Kudos & Solved are greatly appreciated. 🙂
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