What to do about chargebacks.

Discussion in 'Server & Community Management' started by godgodgodgo, Mar 26, 2013.

  1. Just a crazy thought, but do you guys think it wold somewhat help against chargebacks if we dont allow new players to donate?
    Like, they have to have been playing for XX hours before they can donate. A player who has invested that amount of time in a server, might be less inclined to scam the server? Compared to a new player?
  2. I genuinely don't think that would help much.
  3. SpaZMonKeY777

    SpaZMonKeY777 Wiki Team

    Anyone who discuses losing $3000+ in charge-backs and charge-back fees just boggles my mind. What kind of server and community do you run? What kind of players do you let on your server and what do you do to make them want to charge-back a payment?

    We are almost at our 1000th paypal transaction and have had a total of 2 chargebacks (Totaling $170 + 1 $20 fee) and I have refunded 2 players on my own accord because one got banned, and the other waved around their donations in my wifes face like it was going to get him unbanned. And since they were brand new to the server, we refunded them and removed them both from our community :)

    I don't know, just boggles my mind to see servers lose so much.

    EDIT:
    Sorry, to stay on topic... To the OP, there is nothing you can do but try and just refund the charge and hope for no fee. The one chargeback we had (Our first one) I gathered so much info on their website registration, in game info, IP's from website and in game, etc. But it was a waste of time, and still had to pay.
    Last edited: Apr 3, 2013
  4. Then why dosent someone sort them out? This is obviously unfair.
  5. SpaZMonKeY777

    SpaZMonKeY777 Wiki Team

    Because the dispute isn't from Paypal, it's dealt by a Credit Card Company who doesn't care less. Paypal takes the information you supply and sends it to them, so you can't fault Paypal. I have spoke with them over the phone often, and they are super helpful. Paypal dispute can be won, but credit card company dispute through paypal cannot be won. It's the harsh part of virtual goods.

    The ONLY thing you can do is to send something physical (like a letter) to each donator, this could win any dispute made. The issue is, you need a tracking number to prove it was received, and that costs money, and would eat a % of the purchase in the first place. My wife wanted to order like 100 custom AWNW minecraft themed bracelets and mail them to anyone who donated $50+, but we already have little to no spare time, and this just didn't fit into our time. Yet. :)
  6. So, you couldent send them something 'physical' like something on their computer, or an email?
  7. SpaZMonKeY777

    SpaZMonKeY777 Wiki Team

    Something on their computer or e-mail is considered virtual, not physical. Physical means they can hold it in their hands.
    • Bad Spelling Bad Spelling x 1
  8. So how do large games like World Of Tanks deal with situations like this?
  9. Chargebacks are easy wins. Here's what I do.

    Aggressively try to contact the buyer through email to get a response.
    View the raw email format to grab their IP address.
    View the BuyCraft logs that show the payment IP address.
    Photoshop a nicely formatted view of the 2 photos together to prove the purchase was authorized and send to Paypal.
    Send an email to the buyer telling them that you don't tolerate defraud and that it is illegal.
    Tell the buyer that you would have gladly offered them a refund if they would have contacted you even though you wouldn't have.
    Wait for Paypal to send the money back.
  10. What help does grabbing the IP address do?
    What help does "Aggressively try to contact the buyer through email to get a response."? Wouldent that just be used as evidence AGAINST you?
    • Agree Agree x 1
  11. It is not a complete waste of time to still submit proof. I never had as many charge backs as some of these people, but I would always win my paypal ones, and I would always loose the ones where the filled it with their credit card company. The funny thing was, even after they got their money back, 6 months down the line I got an email from paypal stating that a Dispute made on 'date', transaction id has been re-looked into, and it has been decided that the buyer had gotten what they purchased and the money was back in my paypal acct.

    I always banned every person the disputed their paypal payments via paypal or credit card company. Even if I won, I still banned them for attempting.

    I also had in my ToS that you had to agree to upon purchase of a rank that you hear by acknowledge you are acquiring a electronic good for a set time in exchange for a set currency. You also acknowledge that this is not a "get out of jail free" card, and if you break the rules you will still be banned without refund. All exchanges are donations to the server, and non-refundable.

    This got me out of the whole not "Physical" thing because they are agreeing that they are getting a "electronic" good that will expire after a set time. Even if it did not at that time, it ended up getting settled in my favor 90% of the time further down the road.
  12. Most of my chargebacks are from people that buy a lot of items then chargeback, so I have had at some times just 5 people alone charge-backing 10 items each, though I have spent 3-5k in fees, I get around 10-20k per month.
    I have replied to several chargebacks with their IP info, etc, etc though they always close them saying I have no "seller protection" due to the item being intangible. A kid spent over $5,000 to the server through about 100+ purchases, he was using fake credit cards and chargebacks were open on all of them, so I provided them proof of his IP, his name, buycraft info on the purchases, and so on and even proof saying that he was indeed using fake credit cards with fake info and he was planning to get more cards to spend on other servers. After faxing all this info, screenshots and a letter explaining what happened to them, they still did not support me in the case and I lost the chargebacks, thugh luckily after that I called them up and a nice guy got paypal to refund me all the chargeback fees.


    9/10 times the person that chargebacked is not going to email you back, also most mail providers hide the IP in raw format. Though I'm sure each chargeback is settled differently depending on how stupid the PayPal employee is.
    Last edited: Apr 4, 2013
  13. We lost about 4k on chargebacks... This is very frustrating.

    How do I handle 100 chargebacks? Do I replay to them all or should I call paypal? and explain them the issue?
    Also, should I send a screenshots from buycraft? I have no clue what so ever.. :/
  14. Send em all the evidence you can get!
  15. If anyone's already rung PayPal about this, did they mention what the main things we can give evidence of that will make the decision in our favour?
    • Like Like x 1
  16. nhadobas

    nhadobas Moderator Supporter

    Too bad chargeback are not held through PayPal...they are held through the credit card company.
  17. nhadobas Most chargebacks I receive are held through Paypal. I win not only Paypal chargebacks but also credit card chargebacks.
  18. wut. There is no such thing of PayPal chargebacks, all chargebacks are from the persons credit card company..
  19. nhadobas

    nhadobas Moderator Supporter

    You do not win credit card company chargebacks. You're giving a virtual good, so you won't win.
  20. jeff142

    jeff142 Supporter

    I often win Paypal charge backs.
    To this day i have never won a credit card chargeback.