Paypal And Banking Tip

[flyingfox]

My product is sent to my customers by email. I have samples on my website so there should be no surprise to them. However once they receive the product that I've manufactured, they sometimes cry foul and run to their credit card companies for a charge back so they don't have to pay me.

How I counter this:

-I get paid by paypal who would debit my account if there is a charge back.

-I constantly keep my paypal balance at zero.

-I keep the attached Kasikorn bank account balance at zero. Always moving money into another account as soon as it comes in. I am notified by email and SMS!

-Now my money is safe but I'll lose the paypal account when paypal notifies me I owe Mr. AAA $x.

-However, Kasikorn bank allows people to open an infinite number of accounts which are all attached to paypal so this is how I keep my shirt from the fleecers.

Clever but tiring....

[Heng]

Hardly clever unless you think you can open infinite Paypal accounts. Unique credit card + bank account + form of id (for those pesky confirmation of identity fax in requests). If any of those are linked to a frozen account, then that account gets frozen as well.

There is a solution, but it's more common sense than technical, I'm sure it'll come to you.

hint: reeds

Second hint, if you intend on doing any real volume get your own merchant account with a 'real' bank. It's all relative but IMO anything over $25k USD a month in revenue and you probably shouldn't be relying on Paypal (or any of the other IPSP's out there).

[Hawk]

Not clever at all as you will find out when you start trying to open another Paypal account.

Anyway sounds like you are the one that's trying to be devious.

[gregb]

Rather than going through all of this, why don't you simply try and educate your customers before they buy so you can keep your chargebacks under the 1% industry average? Then, since your chargeback rate is so low, you simply accept it as a cost of doing business.

I am amazed to see that you would advertise to the entire TV community that you run a business which offers such a poor product that people are disinclined to pay for it, have figured out a way to steal from those customers who feel genuinely dissatisfied, and then somehow claim that this should be glorified as a "banking tip."

You are putting your efforts into the wrong place with this idea.

[flyingfox]

Interesting replies. I'm in this industry since 1995. All legit and a heavily sought after product. The consumers want something for nothing. I can't say much more but I guess it adds spice to my life being one step ahead. I've opened about 20 paypal accounts and they're all verified. All with Kasikorn bank. I receive an SMS and an email whenever I receive cash.

[chops]

me too. I've gone through about 30 or so different PayPal accounts. Some are quite negative. lol.

[galvheim]

I just found something very interesting in this post and had just written a long post about these findings and how to take big advantage of it. As I am ready to post I see that this will disclose too much information and certainly get me in trouble in here. Also, in the end I start see this in a much bigger picture and I understand there is a lot money to get from what I found, so I will rather keep it for myself and also avoid getting in trouble with regards to forum-rules on TV. Better I just shut my mouth on this one.

Edited October 22, 2010 by galvheim

[Kwasaki]

Have you got a work permit ??

[flyingfox]

I sell Jewish wedding contracts that most Jews are required to have for the spiritual part. I'm the broker b/n the artists and buyers. My buyers have loads of wedding expense and don't wish to compensate the artists for their hand crafted wares. It's not a major amount of people but I do lose about $2000USD/year in people doing charge backs because they don't want to pay for something that they can already see but not touch online. An eye for an eye.

Step 1: Open bank account.

Step 2: Open PP account and verify your account.

Step 3: Connect account to your website.

Step 4: When charge back occurs, offer to send your client a certified cheque which will arrive in 5-7 days.

Step 5: Empty your PP account.

Step 6: Remove PP account and add standby account to your website.

[Heng]

What about step 3.5 where processing a payment through a buy button on your website triggers a Paypal flag and freezes your account because your URL is part of the button code? Or step 4.5 where the funds in question are automatically held until the charge back is settled, regardless of whether you promise your customer a check or not?

But by all means, try to find a workaround, eBay (and by default Paypal) shareholders love the 4% cut we get however many knockoff products or Jewish marital licenses folks find a way to sell.

Edited October 24, 2010 by Heng

[flyingfox]

This thread is about the banks and paypal.

My business is legit and in operation 15 years, 7 in Thailand via my website.

[haveaniceday]

LOL, My experience is that people of the Jewish faith and Indians are the hardest to get accounts settled and I am not at all surprised that you get allot of charge backs, regardless of your product.

[Heng]

The Paypal TOS are heavily in favor of the customers. As soon as they say/click on the dispute button... funds are held from the seller's account. Not to mention that the fees are above what it would cost you with a real merchant account. So you are forever (until you grow into a larger business) at a cost disadvantage to the larger players. People whine about them a lot, but you can't argue with their business model. It's great as long as you're a shareholder and not someone trying to make a living with it as their main conduit of revenue (and just IMO but the folks who have to rely on it "running businesses from home" will only continue to grow).

Edited October 24, 2010 by Heng

[DiamondKing]

The Paypal TOS are heavily in favor of the customers. As soon as they say/click on the dispute button... funds are held from the seller's account. Not to mention that the fees are above what it would cost you with a real merchant account. So you are forever (until you grow into a larger business) at a cost disadvantage to the larger players. People whine about them a lot, but you can't argue with their business model. It's great as long as you're a shareholder and not someone trying to make a living with it as their main conduit of revenue (and just IMO but the folks who have to rely on it "running businesses from home" will only continue to grow).

I have always found in business that good customer service is a priority and if you are mailing something send it via trackable post.

PayPal are fine to work if it is a tangible product and you can prove you posted it.

With but with Digital Products your out of luck and basically with my Digital products I just simply refund them the moment they request money back no questions asked, then I block them from purchasing from me again.

It is only a very small minority that will steal your products and not worth losing sleep over. I have never had more than 1 paypal account and see no need to do what the OP was suggesting unless he is into something dodgy.

DK

[chops]

Flyingfox = Harris Black.

[Zpete]

Flyingfox = Harris Black.

PMPL.........

Good one.

THE HARRIS BLACK WATCH

The Harris Black Watch is a victims' rights group founded in 2002 to monitor the business practices of convicted employment agency con-artist Harris Black and to warn other Canadians about him.

His aliases including the following: Harry Williams, Harry Black, Harry Simon, John Ashton, Steven Shaw, David Gogo, Mark Canterbury, Allan Namer, Mark Linton, Tom Lang, Kenneth Greenberg, Harry Kennedy, Lisa Flaherty, Greg Thompson, Martin Feldman, Jennifer Mason, Sister Mary Joseph, Father Constantino, Beth Feldman, Steve Feldman, Sister Mary Hughes. His recent companies / web sites include: www.CareerExperts.org, www.Career-Experts.org, www.thejobnow.com.

[dave111223]

I used to sell digital products in the US, and if i got a charge back within 7 days of the transaction (most of the time on digital products you get the charge back pretty quick after they get the product). I'd then mail an empty envelope (with tracking number) to the customer.

I'd claim to paypal that the product was a tangible product and have tracking number to prove it.

In the US i'd be covered under the sellers protection and get the money from the sale anyways. Unfortunately outside of US accounts the sellers have pretty much no sellers protection.