Paypal Chargeback Scam

Paypal Chargeback Scams happen when the buyer is a fraud and after getting the products claims that he has not got the product or the service.

Paypal chargeback Scam can be classified into two categories -
1. Scams involving Products - Paypal only cover (investigate) where a tangible (physical) product is involved so scamming is alot less with physical products as the sellers will always have the shipping receipts as well as the accepting receipts for the product.

2. Scams Involving Services - Service based paypal scams probably makes for 98%+ of all the scams. The reason being, paypal do not support any kind of ruling on services, so if you have designed a theme or sold a domain or a site to someone and than person chargebacks then the money will be given back to him after a formal inquiry.

If you are offering a service then its highly advisable to make sure the person Can not chargeback as its the sellers responsibility to make sure this.

How to Identify a Paypal Scammer ?

Scammers usually do not give their personal info and avoid talking on phone making excuses like they don't have (?). They also likes to hurry up the transaction and the moment you talks about agreements (which you should always do if you are offering a service) will most likely chicken out or make excuses. Scammers also will never give his identity proof or will fake it.

How to Avoid Paypal Chargeback scams ?

To Avoid paypal chargebacks when you are offering a big, costly and time consuming service or selling a website, may be its a good idea to chose different mode of payment or even use http://escrow.com eventhough they have high fees as compared to paypal.

Please Read our Article on How you can avoid Paypal chargebacks to know how you can avoid such chageback scams.