Is there any way to protect myself from PayPal chargebacks?

[iZenith]

I have a negative balance on my PayPal right now because someone did a chargeback fraud. How do I prevent this from happening again? Are there any other apps that don’t allow chargebacks? Please let me know. Thanks.

 

[Kai]

I have a negative balance on my PayPal right now because someone did a chargeback fraud. How do I prevent this from happening again? Are there any other apps that don’t allow chargebacks? Please let me know. Thanks.

Hey @iZenith,

If you still want to use PayPal I would recommend only accepting Friend & Family payments, to reduce risk of a chargeback.

That being said, I would suggest using Bitcoin if you are looking for a full-proof way to avoid disputes or chargebacks.

Otherwise Western Union is a good choice in my opinion as they provide security features that help make disputing payment safer for sellers as a police report has to be filed in many cases. A lot of buyers and sellers also use Western Union.

Skrill is anther good choice as transactions are final unless the account was compromised, (which would have to be investigated).

Gift cards are not a bad option in a lot of ways as many companies will not always remove the money from the card even if the purchase is chargebacked.

Hope that helps,

 

[iZenith]

Hey @iZenith,

If you still want to use PayPal I would recommend only accepting Friend & Family payments, to reduce risk of a chargeback.

That being said, I would suggest using Bitcoin if you are looking for a full-proof way to avoid disputes or chargebacks.

Otherwise Western Union is a good choice in my opinion as they provide security features that help make disputing payment safer for sellers as a police report has to be filed in many cases. A lot of buyers and sellers also use Western Union.

Skrill is anther good choice as transactions are final unless the account was compromised, (which would have to be investigated).

Gift cards are not a bad option in a lot of ways as many companies will not always remove the money from the card even if the purchase is chargebacked.

Hope that helps,

Thanks for your helpful answer! I will definitely try those options.

 

[Master-Trader]

Thanks for your helpful answer! I will definitely try those options.

keynin has mentioned almost every possible ways, i agree with him
Let me add some user experiences if you consider to use different way than paypal;

1-Bitcoin
I could say it's probably safest way but unfortunately it's not used by people commonly and when you say people i'm using bitcoin, many of them would just say like 'thank you but it's not for me, let me look for another seller'
So, they wanna be stick to more conventional options

2-Skrill
It's better than bitcoin in practise, atleast , even if people don't have a Skrill account, they try to get an account and use it (unlike bitcoin) , however there is a disadvantage of it, if your buyer is from EU region, then he doesnt need to verify ID+Address, they can just register, deposit and send money fastly [up to a limit (200 euro around) ] but if your buyer is from USA region, he will be have to do verification before using his account, which may take 24 hours and people don't wanna wait that long, as you can guess

These are the ways that i've been using actively, i just wanted to share my experiences

 

[Segnaless]

So the "gift" option is better than "good and service" to prevent from scams? I thought the second is much better due to sellers protection. But as PayPal said, they do not guard game account sellers. And that person who made chargeback made it through his bank.

 

[Kai]

So the "gift" option is better than "good and service" to prevent from scams? I thought the second is much better due to sellers protection. But as PayPal said, they do not guard game account sellers. And that person who made chargeback made it through his bank.

It mainly comes down to how you conduct your business. Goods & Services protection doesn’t extend to digital goods, making the burden of proof higher through that method for smaller or inexperienced sellers, and more susceptible to abuse during disputes. This is one of the main reasons why Friend & Family payments dominate the market among the everyday user as it tends to be a safer option for them. However, larger business or platforms favour billing via “Goods & Services” as their websites, and billing methods tend to all be integrated and set up in a way that PayPal recognizes which would benefit the company more so then Friend & Family even for disputing.

 

[Garp]

I remember reading somewhere that even receiving payment as F&F still doesn't protect you from chargebacks.

 

[Kai]

I remember reading somewhere that even receiving payment as F&F still doesn't protect you from chargebacks.

Yes that is correct. Both F&F or Business can be disputed, but you still have more protections with F&F as a smaller seller, and a lot better protection if you are a larger seller with G&S.

 

[ChrisPTY507]

PayPal is the most popular but also the worst to use in this kind of business where chargeback scams are so common. Even if they pay you using friends and family you can get scammed because the scammer make the dispute not with PayPal, but they can call the back directly and claim the transaction was an error and then request the bank to decline the payment
I personally use methods where scammers can’t chargeback such as bitcoin, Ethereum, Payeer, Skrill and Gift cards

 

[Dropain]

Go for PayPal Friends and Family payments and if you've got a bank account I highly recommend you to setup a Stripe account, a lot of shops online accept Stripe as payment method.