Card Declined: Problems With Taking Card Payments For Online Sales

Posted on April 25, 2014

Selling goods online, whether through online listings sites such as eBay or via your own website or e-commerce platform, requires constant attention to security with regard to which payments are secure and which are potential scams, especially for those who are relatively new to the whole process.  The abundance of potential scams and opportunities for fraud in the current e-commerce market means that sellers need security measures in place to flag up possibly fraudulent transactions, and this in turn requires an understanding of why certain transactions will be declined. Why Payments Decline:  E-commerce Security. Beyond a straight forward lack of funds in the buyer’s bank account, there are numerous reasons why a customer’s payment may be declined, and understanding these is an essential part of conducting online business securely: You can’t be fully secure in your transactions without payment processing security measures in place, but you also need to be…

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eBay Without PayPal – Buyer and Seller Paradise (or the wild west)??

Well, well, well, we can’t say that we’re in any way surprised: One of the world’s most successful investors, Carl Icahn, who has a stake in eBay, wants its management to spin off PayPal. Our reaction is perhaps best summarised by THIS: We can clearly see how this would add value for shareholders. PayPal is the jewel in eBay’s crown, and produces the bulk of the profits. Divesting the PayPal division would give shareholders a disproportionate return to current valuations. (Imagine the combined Ebay entity is currently worth $100 dollars. Selling Paypal may yield $80 and the lone eBay entity may still be worth $50 – a profit of $30 for shareholders. In other words, it’s currently worth less the sum of separate component parts. Classic asset stripping from one of the world’s greatest corporate raiders – Mr Icahn you’re a genius). But we’re really unsure about the implications for…

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How Not to Sell Antiques Online

Another classic scenario illustrating how merchant payment processors can really take the fun out of making money online and turn a successful online business venture for an honest merchant into a disaster.  Pay fees to receive your money and don’t even get any real security or protection in return… Shared at http://www.paypalsucks.com/ In this case, a seller closes an eBay deal on two very expensive antique vases, with the winning bidder paying around $2000 for them via PayPal.  After finalizing the deal, the seller and buyer arrange that the vases will be picked up in person from the seller’s house: the buyer has positive feedback on his eBay account and the seller has no reason to be suspicious. The transaction goes smoothly until several days after the goods are handed over, when the antique seller is contacted by PayPal, who inform them that the money received for the antiques has been…

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Seller Protection

Yet another case of an honest seller being scammed through PayPal, with the fraud receiving the hard-earned money from PayPal without the seller getting a chance to fight their case. A jewellery seller in the US receives order for piece of jewellery costing more than $15,000. The seller takes a payment for half of the money and sends the item to the customer. At this point, the customer initiates a chargeback on the goods, claiming to their bank that the items are broken and not as described, despite the fact that the shipment was insured by the seller, and the item was made to the customer’s exact specification. The seller sends documentation to PayPal detailing their part of the deal, which was legitimately carried out by them in full. PayPal, however, not only charges the money from the seller’s account and gives it to the fraudulent buyer, but also freezes access to the…

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How PayPal Transformed And Then Ruined eBay

eBay’s purchase of PayPal was, in the first instance at least, a truly INSPIRED purchase. It really was. Here’s why: Consider this: In effect, eBay is simply a means for people to list items for sale and “agree a price” – the latter being the auctioning process.  The point is, once a price is agreed, the company is no different to any other which enables people to list items, for example, Craigslist. Now, on Craigslist, you cannot actually BUY. They take no responsibility for that, and indeed, there are pages and pages of warnings to potential Buyers to take precautions and not get scammed while transacting.  This is because Craigslist understand that the single most important and complex risk in the Buying and Selling process is “payment risk” and they just don’t want anything to do with this. But imagine the transformative effect that a listings website would have if…

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One Way To Avoid Being Scammed While Selling Online

When selling goods online it’s vital to be aware of certain risks, especially if the goods you are selling are high-value ones and therefore a high-risk venture when it comes to sending them off potentially to someone you’ve never met before. One thing to  be aware of is that if you’re planning to take payments through a merchant service provider, credit card company or PayPal, as a seller you are at significantly heightened state of risk when it comes to scams and exposure to  fraudulent buyers.  The problem many users of PayPal and other services continually come up against is that the buyer always seems to win in any kind of dispute or claim.   Why is this the case with credit card companies?  One reason is that it’s in their interest to keep the card-holding customer on side – they want to keep them transacting.  Why is this the case…

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Where Does All The Money Go?

Posted on August 29, 2013

Almost everyone has probably used PayPal at some point in time to either send or receive a payment, such is the almost monopolistic hold it seems to have on the eCommerce marketplace.  So here are a few thoughts on the shortcomings of PayPal, shortcomings and hang-ups that effectively inspired us to create our own alternative.  Unfortunately there are some online products or services that only take PayPal (or situations in which you will find yourself having to use it), so we still have roll our sleeves up and deal with this often frustrating company. The amount of time that PayPal holds users’ money for instance, raises serious questions about the efficacy of using it for an online business.  It’s not a bank, and you don’t earn interest on the money they hold onto for ambiguous periods of time. So let’s look at the time it takes for any transaction on PayPal…

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Three Major Dangers You Face When Taking Payments Through PayPal/Merchant Services:

Posted on August 21, 2013

Frozen Accounts: An internet search brings up any number of dissatisfied PayPal users and their problems. In fact judging from the volume of disasters experienced, it’s surprising that many online sellers are still effectively risking their income through taking their payments through PayPal. Here’s one account showing the dangers of the randomly frozen PayPal account, from PayPal warning.com. An online seller’s account is suddenly closed for 180 days, believe it or not due to high volume of sales passing into the account.  PayPal follow their usual practice of demanding large amounts of business documentation, and the seller supplies them; this results in the account being frozen anyway. It gets worse still. The seller then attempts to refund the money to their latest buyer, given that the transaction can no longer take place due to the frozen PayPal account.  This results in PayPal taking the money from the seller’s personal account rather than their PayPal account, meaning they have been charged twice for the amount they…

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Negative Paypal Balance: should you have to pay it?

Posted on August 7, 2013

Interesting point raised by this account, shared on the following thread: http://www.consumeractiongroup.co.uk/forum/showthread.php?395654-How-Do-I-get-Information-From-Paypal&highlight=paypal When PayPal demand that a defrauded seller pay their negative balance back to PayPal, have PayPal actually incurred a cost themselves by paying off the fraudulent buyer’s credit card company?  If not how can they defend the act of sending debt collection agencies after unfortunate online sellers? Here’s the situation: An established eBay seller has had a fraudulent chargeback issued against them years ago, the buyer claimed non receipt of the item despite the fact that the seller had confirmation over the phone from their delivery service that the item was delivered.  PayPal however did not acknowledge that the seller could actually demonstrate that the item was delivered, as at that time their policy was that the delivery had to be tracked online, which was not possible with the seller’s delivery service.  So instead PayPal had simply charged…

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A common eBay/PayPal scam and what to do if you’re the victim

Posted on August 7, 2013

Another case of the volatility of the eBay/PayPal environment: The scenario: A relatively inexperienced seller lists an iPhone 5 on eBay. About 25 minutes before the auction is due to end, the seller receives a phone call from a bidder, who asks if he can come and collect the item in person in the event of winning the auction. The seller then contacts eBay by phone, (having been slightly worried at the fact that the bidder could get his contact number), asks whether it will be safe to have the item collected in person or whether this will cause an issue with the transaction, and is told there would be no problems. So the seller receives the payment, arranges to meet the buyer in person to hand over the item sold and the deal is completed; the funds (hundreds of dollars) are in the seller’s PayPal account and they duly…

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