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PayPal users are frauds :-(

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Curt:
Reading the posts on Bits du Jour, I came along this post from Susan Westlake from Technology LigthHouse, maker of ColorCache, PTFB (Push The Freakin' Button), and PromptPal, about why they have removed PayPAL as an payment option in their shop:

Susan Westlake: Jim, I'm afraid we disabled the paypal option some time ago as it was an open door for fraud.

Susan Westlake: Hi Joe, I'm so sorry I can't help you. I appreciate that it's nice to be on the buyers end with Paypal - I happily use Paypal as a buyer. For a few years we used it quite successfully on the sellers end, but things changed I think because in the last couple of years we had nothing but bother. I know there are lots of honest people that use paypal as buyers (I'm one of them), but when it came to software sales we found that only a handful of people used paypal and the majority of them refused to pay claiming that the purchase was made fraudulently by a third party. When we switched it off all we seemed to loose were those fraudulent sales. I'd willingly switch it on just for you, but we no longer have an account. So sorry I can't help.
--- End quote ---

Of course I was very sad to read this, because I prefer to use PayPal for the sake of my security. Now it seems that my security is the opposite to the seller, because too many users now are frauds.

This is all news to me. Sad news.  :(

mouser:
We've used paypal here for many years and i've not seen any such problems..  in fact i still love paypal and am very happy with them.  i dont know anyone else with such small fees for small payments.

Maybe it's because of the nature of the site, but i don't really get what they say is going wrong..
Are they are saying that people who buy with paypal demand returns or that paypal contacts them after purchase and takes the money back saying the payment was made due to a stolen account?

Even if that happened a lot -- i'm not sure how that negatively effects a seller of digital goods -- they don't lose anything and paypal doesn't charge them anything when this happens, so what's the problem?

skwire:
I wonder if these are cases where:

1) User buys a piece of software using Paypal.
2) User receives software key/serial via email.
3) User then claims a fraudulent transaction and demands refund.
4) Paypal refunds user and seller loses that transaction and monies.
5) User now has a legitimate key/serial and is not out any money.

Perhaps?

mouser:
Yeah but so what.. if a user is going to do that then they weren't going to purchase from you anyway, so what do you care if they got a free license key or not.

skwire:
*shrug*  I'm going to guess it's a "it's a matter of principle" thing and the avoidance of feeling like you're getting screwed.

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