I run a hosting business and have been a PayPal business member for many many years and literally process thousands of transaction each year.
From time to time we receive a customer that uses our hosting services and then once they finished they then lodge a PayPal dispute and ALWAYS it is us that lose the dispute even though we provide every piece of information via the dispute process.
As we do not ship physical products it is difficult to prove with certainly that the customer received the product however it is more of a service we are providing.
Most of the time the "scammer" states that their account was hacked and did not make the purchase. Surely the account holder should take some responsibility in protecting their account ??
I have contacted PayPal via telephone wanting to discuss what we could do to protect ourselves from these reverse charges and what information they would accept to protect us and so we can provide evidence with 100% certainty that the customer did indeed make the purchase. PayPal dispute team could NOT provide any advice to me on what they would accept and what changes we could make during our purchase process. If they could provide details on what evidence they would accept I could easily modify our purchase system to include such however it appears to me that no matter what once a dispute is raised in EVERY occasion we ALWAYS lose the dispute. I even told PayPal I would be more than happy to do an experiment and make a purchase via my business via my personal PayPal account and then raise a dispute just to show then how easy it is for scammers to take advantage of the reverse payment and dispute process.
What is disturbing is the person who lodges a dispute does not need to provide any information except checking a few boxes. If these customers a too stupid to secure their PayPal accounts then they should not operate one as their should be systems in place to protect business account holders and especially ones that process many thousands each year. My staff usually spend up to an hour compiling all the evidence about the dispute which not only costs me more money but we eventually lose anyway.
While I appreciate legitimate disputes if we even provide a service that is different from advertised I feel strongly about never accepting the dispute without a long drawn out fight as businesses should not pay the price for those that cannot secure their accounts or lodge disputes due to them trying to scam businesses with payment disputes and reversals.
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