Here's how it goes:
1. you sell something online on your e-commerce website. Paypal does NOT offer seller protection as 1) you are not selling on ebay, 2) you are not selling something physical (you're selling digital items).
2. the buyer uses their credit card, finished the transaction with paypal, goes to their account on your website, downloads everything there is. You can keep as many logs as you wish, they won't count at all during disputes. You may even send the buyer e-mails after purchase, they will not reply.
3. almost 2 weeks from purchase the buyer suddenly realizes that aliens abducted their credit card and goes to the bank saying "hi, money back please, thanks". Bank contacts Paypal, Paypal sends automated e-mail to you.
Now here's the fun part: you - the seller, must come up with evidence that you have sold something almost 2 weeks ago (screenshots, notes, logs, IPs, addresses, locations based on IPs). You may very well not receive any human replies from Paypal, as it was my case, just wait for the days to pass.
4. Time's up!
Some 12 days after the chargeback was opened (again, less than 2 weeks time frame) you get an e-mail (automated) that it happened, the buyer won the case. They get their money back even though you provided all the evidence there could be that a person bought something and that downloads took place. Nobody from Paypal ever asked you anything in person. You are also charged with 20 USD because... You are being charged with 20 USD for the amusement of it - let's see how it goes!
Bottom line: If you are selling anything digital, the buyer can ask for a full refund at any given time within 2 weeks, wait relaxed for almost 2 weeks and get their money back AND harm you with "chargeback fees" - roughly translates to "20 USD for 2 automated e-mails".
My questions is: How can one protect themself from such a scam? Thank you
