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List: asterisk-users
Subject: Re: [asterisk-users] How to deal with PayPal frauds?
From: Zeeshan Zakaria <zishanov () gmail ! com>
Date: 2009-08-31 17:11:31
Message-ID: 5ad99e890908311011k1f6fa80ep38a638778ac8fce4 () mail ! gmail ! com
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Good idea Eric regarding welcome package.
--
Zeeshan A Zakaria
On Mon, Aug 31, 2009 at 1:07 PM, Eric Chamberlain <eric@rf.com> wrote:
>
> On Aug 30, 2009, at 7:45 PM, Zeeshan Zakaria wrote:
>
> > I charge my customers through PayPal, but recently faced a fraud
> > which previously had only heard about. Somebody registered a few
> > accounts, paid online with paypal (as my service is only prepaid)
> > and started making expensive long distance calls. In fact the IP
> > registering the accounts was from Florida, and IPs making calls were
> > from Africa. After about 20 minutes the first payment was reversed.
> > Then a few times more payments were made, and every payment was
> > reversed almost as soon as it was made. Payments were made from
> > different PayPal accounts. And then I started getting emails from
> > PayPal resolution center that some payments were made by users who
> > didn't authorize them.
> >
> > Obviously either somebody was using stolen paypal accounts, or
> > somebody knows that he can pay and reverse the payment and in the
> > meanwhile make enough long distance calls. What is really fishy that
> > reversals were made almost as soon as the payments were made, one
> > after another.
> >
> > Those who are more experienced in this business, please advise how
> > to avoid this type of fraud, and which service to use in place of
> > PayPal, because PayPal doesn't seem the right payment solution for a
> > prepaid VoIP service. Also now that they have all the payments put
> > on hold and asking for a resolution, their resolution center is good
> > only for shipped merchendise, not for online services. How would I
> > prove to them that the buyer who is asking his money back has
> > already utilized my service by making lot of international calls,
> > which I now have to pay for to the carrier.
>
> Despite what PayPal and any of the other processors tell you in their
> marketing material, there is very little protection for online
> merchants. The only way to be mostly sure, is to accept cash or wire
> transfers.
>
> Having said that, you might want to look into MasterCard's SecureCard
> program (
> http://www.mastercard.com/us/merchant/solutions/mastercard_securecode.html
> ). I don't remember the exact details when a physical product is not
> involved, but the general idea is that if you enroll in the securecard
> program, you will be covered from cardholder unauthorized
> chargebacks, Visa has something similar. AmEx has a number you can
> call and they will verify transactions over $250 with the card holder.
>
> You might also want to consider shipping a welcome packet to the
> customer, that may cover you under PayPal's physical goods terms.
>
> --
> Eric Chamberlain, Founder
> RF.com - http://RF.com/
>
>
>
>
>
>
>
>
> _______________________________________________
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>
[Attachment #5 (text/html)]
Good idea Eric regarding welcome package.<br><br>-- <br>Zeeshan A Zakaria<br><br><div \
class="gmail_quote">On Mon, Aug 31, 2009 at 1:07 PM, Eric Chamberlain <span \
dir="ltr"><<a href="mailto:eric@rf.com">eric@rf.com</a>></span> wrote:<br> \
<blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); \
margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;"><div><div></div><div class="h5"><br> \
On Aug 30, 2009, at 7:45 PM, Zeeshan Zakaria wrote:<br> <br>
> I charge my customers through PayPal, but recently faced a fraud<br>
> which previously had only heard about. Somebody registered a few<br>
> accounts, paid online with paypal (as my service is only prepaid)<br>
> and started making expensive long distance calls. In fact the IP<br>
> registering the accounts was from Florida, and IPs making calls were<br>
> from Africa. After about 20 minutes the first payment was reversed.<br>
> Then a few times more payments were made, and every payment was<br>
> reversed almost as soon as it was made. Payments were made from<br>
> different PayPal accounts. And then I started getting emails from<br>
> PayPal resolution center that some payments were made by users who<br>
> didn't authorize them.<br>
><br>
> Obviously either somebody was using stolen paypal accounts, or<br>
> somebody knows that he can pay and reverse the payment and in the<br>
> meanwhile make enough long distance calls. What is really fishy that<br>
> reversals were made almost as soon as the payments were made, one<br>
> after another.<br>
><br>
> Those who are more experienced in this business, please advise how<br>
> to avoid this type of fraud, and which service to use in place of<br>
> PayPal, because PayPal doesn't seem the right payment solution for a<br>
> prepaid VoIP service. Also now that they have all the payments put<br>
> on hold and asking for a resolution, their resolution center is good<br>
> only for shipped merchendise, not for online services. How would I<br>
> prove to them that the buyer who is asking his money back has<br>
> already utilized my service by making lot of international calls,<br>
> which I now have to pay for to the carrier.<br>
<br>
</div></div>Despite what PayPal and any of the other processors tell you in their<br>
marketing material, there is very little protection for online<br>
merchants. The only way to be mostly sure, is to accept cash or wire<br>
transfers.<br>
<br>
Having said that, you might want to look into MasterCard's SecureCard<br>
program (<a href="http://www.mastercard.com/us/merchant/solutions/mastercard_securecode.html" \
target="_blank">http://www.mastercard.com/us/merchant/solutions/mastercard_securecode.html</a><br>
). I don't remember the exact details when a physical product is not<br>
involved, but the general idea is that if you enroll in the securecard<br>
program, you will be covered from cardholder unauthorized<br>
chargebacks, Visa has something similar. AmEx has a number you can<br>
call and they will verify transactions over $250 with the card holder.<br>
<br>
You might also want to consider shipping a welcome packet to the<br>
customer, that may cover you under PayPal's physical goods terms.<br>
<font color="#888888"><br>
--<br>
Eric Chamberlain, Founder<br>
RF.com - <a href="http://RF.com/" target="_blank">http://RF.com/</a><br>
</font><div><div></div><div class="h5"><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
_______________________________________________<br>
-- Bandwidth and Colocation Provided by <a href="http://www.api-digital.com" \
target="_blank">http://www.api-digital.com</a> --<br> <br>
AstriCon 2009 - October 13 - 15 Phoenix, Arizona<br>
Register Now: <a href="http://www.astricon.net" \
target="_blank">http://www.astricon.net</a><br> <br>
asterisk-users mailing list<br>
To UNSUBSCRIBE or update options visit:<br>
<a href="http://lists.digium.com/mailman/listinfo/asterisk-users" \
target="_blank">http://lists.digium.com/mailman/listinfo/asterisk-users</a><br> \
</div></div></blockquote></div><br><br clear="all"><br>
_______________________________________________
-- Bandwidth and Colocation Provided by http://www.api-digital.com --
AstriCon 2009 - October 13 - 15 Phoenix, Arizona
Register Now: http://www.astricon.net
asterisk-users mailing list
To UNSUBSCRIBE or update options visit:
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