If you sell beats / digital products using PayPal you need to read this!

I have used PP for almost 10 years. Overall the service has been solid. That said, the chargeback policy flaw is weak and unfortunately a part of the game. Just something to consider. The final decision is up to you.
 
[What you can do is counter paypal's t&c regarding refunds, chargebacks in your contract stating clearly if refunds via paypal are requested by Licensee then Licensee will lose any commercial/non-commercial use blah blah blah...]


Perhaps the best suggestion (except for when you get those stubborn clients who become squeamish after contract talk for a quick $25 beat lease)
 
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[What you can do is counter paypal's t&c regarding refunds, chargebacks in your contract stating clearly if refunds via paypal are requested by Licensee then Licensee will lose any commercial/non-commercial use blah blah blah...]


Perhaps the best suggestion (except for when you get those stubborn clients who become squeamish after contract talk for a quick $25 beat lease)

You can state whatever you want It does not matter. They still have your files.The cardholder is disputing the payment with their cc company claiming that they did not authorize the payment. The cc company contacts PayPal and PayPal debits you. You cannot control the process. You get notified after they've debited your account.
 
And here's the kicker: After you get played, they tell you to attempt to contact the individual to work it out.
Smh..

Sure.
 
This is true, i would probably note that down as filtering the real artist with real goals from the still up in the air with the fairies artist with no direction.
 
That's why consulting your entertainment lawyer would be the way to go when going into finer details, there will always be loop hole you can go through.
 
PayPal is a becoming a mess. It's like all you have to do is say "PayPal, please cancel my last transaction"...basically. They'll ask the victim "did you attempt to settle with the merchant?" victim says yes, PayPal contacts merchant, merchant can say whatever ('cause it doesn't matter, customer always right), then finally dispute and refund complete.

Moral... Be careful leasing your beats...make things clear upfront and keep proof!
 
So I did a bit of digging around and I found some other alternatives to accept payments.

Here's a short list:

Authorize.net
(2co) 2checkout.com
Eway rapid
Google Wallet
BitPay (Bitcoin)
Braintree


Now I've only had a chance to look into 2checkout and they seem similar to PayPal but unfortunately in a chargeback scenario you actually end up paying more.

If anyone has had any experiences with any of these other company's please feel free to share as I'm sure this will be helpful for members of the FP community.
 
use Greendot MoneyPaks for payments OR PayPalCash cards.. theyre the reload cards you can get at stores like wallgreens/cvs

paypal lets you add money directly from these cards to your account. so the buyer would simply load up the card @ the store
then give you the code they scratched off the back
the money is added to the account just like they'd sent it from their own paypal but there's no risk of a charge back.
 
use Greendot MoneyPaks for payments OR PayPalCash cards.. theyre the reload cards you can get at stores like wallgreens/cvs

paypal lets you add money directly from these cards to your account. so the buyer would simply load up the card @ the store
then give you the code they scratched off the back
the money is added to the account just like they'd sent it from their own paypal but there's no risk of a charge back.

I guess you could tell your customers to use these if they contacted you beforehand but most don't.

They just buy "on the fly".
 
I contacted PayPal recently and a rep told me that if I sent out a cd the purchases would qualify for seller protection.

IMO This may not prevent the chargeback scenario from happening but it does put more in your corner should you be involved in one.
 
I contacted PayPal recently and a rep told me that if I sent out a cd the purchases would qualify for seller protection.

IMO This may not prevent the chargeback scenario from happening but it does put more in your corner should you be involved in one.

would you do free shipping
 
I totally agree with you, this is what I would say is best too.


Don't believe it.

You will not win just because you stated that in your contract.

In the event of a chargeback you will still be debited for the amount because the cardholder is claiming that they were not the one who made the purchase.

the only way you will win is if you can prove that the cardholder made the purchase.

This is why I say the best thing for you to do is follow up with your customers after each sale.

This way you have proof by way of a conversation between you and the cardholder (or the person who's email address the payment came from).
 
would you do free shipping

If I was to issue CD's with every sale I would tack on the cost of shipping to the price of the transaction (eg: shipping charge) or just raise the price to cover the costs. The only issue with this is that when you get international buyers the shipping costs can get expensive.
 
If I was to issue CD's with every sale I would tack on the cost of shipping to the price of the transaction (eg: shipping charge) or just raise the price to cover the costs. The only issue with this is that when you get international buyers the shipping costs can get expensive.

oh I know I sell on Ebay and it get expensive ...so If I do free shipping I just add it to the cost of the product I'm selling ..so it's not really free shipping
 
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