Absolutely foolproof anti-chargeback system.

[Anidazen]

Hi.

I'm looking to create the most robust system possible for preventing PayPal chargebacks (people using phished PayPal accounts). The product doesn't need a shipping address, but has some very real value, and I have to actually pay for each item I issue at 70% of the purchase price - not like an ebook etc.


Here's what I'm thinking:

1) Cookies track users, can see when multiple accounts same PC etc.
2) Signup before purchase so I've got a username handle on people, can set spending limits etc.
3) IPs logged obviously, check for proxies and check location against seller's location. Deny high-risk countries. (Refund payments where there's any suspicion).
4) Free-email checks were considered, but in the end I gave up on this as pointless, as 90% of my customers would use these. What I might do is try to check if the email given uses MSN messenger, etc. Assuming that these are more likely to be genuine.
5) Auto varification of a landline telephone number via. a script that rings it and gives you a PIN. Test the number type too, no mobiles, and human judgment call if it's a skype etc. line. (possibly pursue further verification).
6) Log PayPal address used, and whether PayPal is verified - compare this with IP and telephone number.


What other steps could I take to combat PayPal fraud? Does anyone know of any method to check if a user is on dialup or broadband? In my particular area security of this kind is a business-halting concern, and I want to be 100% certain the person paying is the owner of the PayPal account. Beyond that- I can deal with.

[Hypnos]

If this is a high value item, you could print and send a verification number over first class mail, or the telephone number associated with the verified shipping address (or do both).

 

Use a blacklist of common proxys, as well as proxy identifier scripts.

 

 

But remeber, even with all of this, they can still do chargebacks. Paypal's seller protection policy will not cover "virtual items". Plus, it's very hard to dispute a chargeback done via credit card.

 

But... you might be able to meet the seller protection terms if you did do something like the first class mail thing.

https://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/securitycenter/sell/SellerPPOverview-outside