How to prevent paypal chargebacks related to fraud

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Hi there, im a professional ebay business seller. In the past two months i have had 6 chargebacks from papyal amounting to £2000. These chargebacks are unauthorised transactions. Paypal took the money from my account and claim to fight the case for me. I submitted the information to them with regards to all the comms i had with buyers , delivery and feedback received.

To this date i am shocked that paypal give in to credit card companies so easily it is beyond belief. Paypal advise that it could take upto 75 days couple of my transactions were closed within 5 days of me submitting the information.

I rang the police and advise them of the addresses where the goods were delivered. An officer did come and visit me, but later had a call advising that there is nothing they can do about it, as there is no credit card number in question and the recepient used a false name. I wasnt impressed at the fact that the police would not even visit the premises and ask questions as to where the goods were as i clearly had proof of delivery.

Here are some of the steps i am taking to prevent chargebacks from use of unauthorised funds.

1. Edit the end of auction email, automated winning buyer notification, and the invoice email to request a landline telephone number to be placed in the message box of paypal payments, if not the order may be delayed.

2. Alot of confirmed members do leave the phone number, also check to see if the number appears in the address registered on ebay.

3. All confirmed members are usually not going to commit to a fraud and also are protected by paypal seller protection, so whether they offer a landline number or not your goods are safe.

4. The problem is with unconfirmed addresses, and large orders of sum over £150 as fraudsters do not waste time with small amounts.

5. If unconfirmed members have paid and have not left a number then you can use request contact information on ebay to retrieve a contact phone number. Once you have this number and its a landline then call it and ask buyer if they are aware of the purchase.

6. If the number is a mobile number then email the buyer and request a landline number, this way you will have contact and communication with the buyer as proof of contact.

7. Once you have spoken to the buyer and asked them about the purchase, do look at their feedback score, but dont think a high feedback cannot be a fraudster,  (ask about item details, ask them to confirm address, also email address, and ask them why the address is unconfirmed. You may even ask for the credit card number which they used to pay for the item). Tell them that the data is protected under the data protection act 1998.

8. After you have spoken to the client and you are either confident or suspecious, make your decision. If latter you can run the name and address on the electoral roll register and see if the client appears there. On free searches the data is outdated by 3 years, such sites like b4usearch dot com but the client may appear there. If confirmed by electoral roll a phone number may appear.  Match this data to futher confirm client.

9. offer an electoral roll info disk at £350 which has data for 2006 , but for a more extensive package go for the corporate package that allows a search from 2001 - 2006 electoral roll register also if the name is false it will tell you who actually is registered to that address with updated details. The service also allows you to do a Prove id check, which is a check on the name and address compared to a file shared by banks to prove client is financially active at that address or not. If you require further confirmation you can also do a drivers license number or passport number check to verify the address of client.

10. Use the above data to verify that the client is who they say they are. If the address is different to that registered with the credit card in question , then request previous address , check that address out and only ship to address registered with card. Again you can run an id check at previous address.

11. If i had these systems in place prior to the fraud payments , then i would have checked the name on that address and known that a so and so does not live there , if so why ? There are services that can verify a phone number to the address provided, via appending service. Even if they opt out of the electoral roll atleast you have spoken to the buyer looked at the feedback , looked on the electoral roll, if things dont add up , then dont send the goods.

I hope this has been helpful and if any of you have a good idea then please let me know.

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