Paypal - No Seller Protection For Services Or Digital Items

SELLER BEWARE:

If you charge for a service or a digital item, paypal will not find in favor of you in any disputes and will recapture the funds and also charge a chargeback fee.

We just found this out when a clients mother did not realize the payment would come through paypal when she told her daughter she would pay her invoice for her. When she saw paypal on her cc statement she called in to her card and reported it as fraud. While she is contacting her bank to drop the fraud case, I am upset that paypal does not offer any seller protection for services or digital items, they immediately found in their favor (this all occurred 2 days ago and paypal has already charged me fees and the return of the funds to the mothers card - even though she is in the process of correcting it with her bank - simply because it was for a service and digital items. A written contract does not even extend the coverage.

We process 6 figures a year with them and have never had an issue, but after learning this part of their business model I wanted to reach out to see who everyone else is using and if they know whether or not they are protected for digital items and services.

Edited Sun Jul 08, 18 9:26 PM by Ryan O

To add to this, if items are picked up at your studio, they are not shipped and you have no proof of delivery and therefore no seller protection as well through paypal.

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I’ve been very happy with Square. Seamless with Sytist and I believe the fees are slightly cheaper.
Here’s my link for the first $1000 fee free :)
https://squareup.com/i/SARAHMACK1

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