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Leaving Paypal ..


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Despite using Maxmind to reduce fraud, we are still getting fraud orders quite often.


Payments that went through Paypal will end up in 'Temporary Hold' status and it's also not possible to refund the payment due to the following reason:


The funds are not available while this transaction is being reviewed


The cycle is usually like this, (for example)


6.39 AM - Notification of Payment Received


20 minutes later ...


6.59 AM - Investigation into Recent Transaction: Case PP-XXX-XXX-XXX(Respond by 10/4/2008)


The investigation will takes a couple of weeks and ended up the payment being reversed to the 'buyer'.


In some extreme cases, a transaction made 4 months ago can even end up in such situations that I am forced to give a FULL refund back to Paypal despite providing evidence that the service has already been rendered.


I would like to hear some advise how you guys handle such issues, and how we can prevent this?

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In my experience with them PayMates rates work out a little dearer than Paypal but not by that much for smaller amounts if you use the subscription for the fees. You can see their fees here https://www.paymate.com/cms/index.php/fees-a-charges-australia. They break down their fees into Seller fees and Buyer fees. I have found that they are alot more secure with transactions as well.


There are some advantages where you get paid directly into your bank account and you can either pass the buyer fees back to the customer or absorb them. Most places like Telstra or Optus now charge you fees if you pay by CC which sucks on the customers view but as a seller you don't loose extra cash from your pocket. Also you can choose to turn off to Accept Foreign currency payments, this means that you only accept AUD or NZD and you don't get charged the conversion rates, the customer does.


The best thing is that if you have a problem you can ring them and actually talk to someone who will help you. I think thats well worth it.


Probably best for you to go to http://paymate.com and see for yourself.

Remember that you have to be in either AU or NZ to have an account with them.

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Also you can choose to turn off to Accept Foreign currency payments, this means that you only accept AUD or NZD and you don't get charged the conversion rates, the customer does.
To be fair you can also do that with PayPal. Using a service such as Maxmind in conjunction with PayPal will also virtually eliminate charge backs and having a water-tight TOS will mostly prevent the kind of abuse via PayPal's arbitration that you have been experiencing. All systems are vulnerable to abuse to some extent but one's own 'diligence' in setting up new accounts is priceless.


It is also a good idea to try and understand what factors within the marketing mix may actually be attracting scammers as a 'type' of account holder. Selling too cheaply and maxing out on 'unlimited' this and that is bound to attract them for example.

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To be honest, PayPal is the biggest shower of sh*te!! Somebody should buy them off eBay, as ebay is the same. No communication, hard to get hold of and generally a pain in the rear end.
Yet I notice that you still offer PayPal as a payment option on your site. In view of your comment regarding PayPal I am curious as to why?
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