Announcement ChargeBacks

Matt

Owner
I've just had my first charge back! Someone purchased the £3 small shared hosting package, and has now filed a charge back. I contacted the email address provided, and no response.

I've now lost £15 for this charge back, and I would have just refunded them had they actually contacted me.

The provided a full valid address, passed all the security checks with Stripe, but I'M still liable for this?? I'm tempted to remove the Stripe payment section if this is how they handle charge backs.
 

Matt

Owner
OK, I've removed the direct Stripe payment option. There is no way for me to protect myself against charge backs, so anyone wanted to pay via Stripe will receive an invoice with a link to pay on.
 

Zynektic

Hosting Customer
Is there no way to protect yourself with Stripe from these sort of things? I know it can take awhile to resolve like PayPal but they should seriously sort that if not.
 

Matt

Owner
Is there no way to protect yourself with Stripe from these sort of things? I know it can take awhile to resolve like PayPal but they should seriously sort that if not.
Apparently not. As it's not a physical good, I have zero protection. To be fair, I didn't even provision the hosting, because I had no contact past the initial payment. I would have just refunded it, but the charge back has landed me a £15 fee on top of the refund.
 

Zynektic

Hosting Customer
From reading that I am glad we moved back to PayPal, I mean PayPal is a nuisance too but not that bad.
 

Matt

Owner
I'm still using PayPal for the majority of stuff, and all my initial stripe transactions were doing via manual invoices with a stripe payment option, so there was no possible way they can claim that was a fraudulent transaction (which they have claimed in this case). I think moving everything back to PayPal is the way to go, unless someone specifically asks for Stripe, and I'll send a manual invoice.
 
Apparently not. As it's not a physical good, I have zero protection. To be fair, I didn't even provision the hosting, because I had no contact past the initial payment. I would have just refunded it, but the charge back has landed me a £15 fee on top of the refund.

If it's a chargeback though, it would depend on the banks decision, not Stripe. I assume the £15 amount is also including the chargeback fee so you received a chargeback from their financial institution. You can always try to rebuttal chargebacks.

As for PayPal, starting July 1, 2015, they started protecting against intangible item disputes. Someone can file a dispute against you and if you don't have significant evidence, you will lose. Here is what they ask and tell you in the dispute:

As of July 1, 2015, virtual/intangible items and services are eligible for Purchase Protection in the United States. As a result, we're requesting additional details to verify the virtual/intangible item or service was received by the buyer and is as described.


Examples of the documentation that you can provide as compelling evidence include, but are not limited to:


-Purchaser's e-mail address to which the goods were delivered

-Date and time goods were downloaded/received

-Description of the goods downloaded/received

-Proof that your website was accessed for services after the Transaction Date

-Purchaser's IP address

-Screenshot showing receipt by the purchaser

-Correspondence with the purchaser acknowledging receipt of the item or service as described

-Any other compelling evidence you may have showing the item or service was received and is as described

Disputes are a part of business though. Would only be concerned if the issue becomes a recurring issue.
 

Matt

Owner
Disputes are a part of business though. Would only be concerned if the issue becomes a recurring issue.
Yep. I'm just pissed off more than anything, because it someone had purchased in error, then I'd have refunded no problem. I didn't do anything so set anything up, so I wouldn't have lost out financially by refunding. It's the £15 charge back fee that stings.
 

nodle

Hosting Customer
I have read about other users using Stripe and doing the same thing on other sites. I would also stay away from it.
 

toad

Managed Customer
How does paypal handle chargebacks?

I was reading online it says if someone does a chargeback it's 20 USD? Isn't it more expensive than stripe?

1.PNG


I have sold things in paypal before (not physcial products) but forum subscriptions or ads and i always see this in the recipet.

Seller Protection - Not Eligible

Screenshots_2015-07-23-17-24-56.png





How about bitpay? I heard alot of people are sellings things using bitpay now and it's better than paypal. I signed up to it a while ago i haven't had any problems so far.
 
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eva2000

Customer
Unfortunately, charge backs are costs you need to factor into your pricing policies and operating costs regardless of the industry :)
 
Ouch mate :( Did you contest it, I don't think I've been fined a fee yet. Does Xenforo have a fraud protection checker like maxmind / fraudlabspro? Also report them to fraudrecord.com as it helps prevent them scamming others.
 

Matt

Owner
Yes, I contested it, but there was nothing I could do. I never actually provided a service to them, as the email address used wasn't valid, so my sent mail to them following up went no where.

The payment was made using a 3rd party stripe script I was using, and the only validation was done by Stripe, who then charged me the chargeback fee when it went wrong. I'm only using them now for subscription payments, and manually generated invoices.
 
Yes, I contested it, but there was nothing I could do. I never actually provided a service to them, as the email address used wasn't valid, so my sent mail to them following up went no where.

The payment was made using a 3rd party stripe script I was using, and the only validation was done by Stripe, who then charged me the chargeback fee when it went wrong. I'm only using them now for subscription payments, and manually generated invoices.

Ah at least you contested it, just out of interest did the card origin match their location? I check that all the time now.
 
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