Paypal's Fraud Prevention Tips:
While the vast majority of online transactions are completed without
complication, fraud and the resulting chargebacks can be an unfortunate
nuisance for sellers. You can reduce the chances of problems by
following the seller tips below.
(PayPal also offers sellers the opportunity to protect themselves from
the risk of chargebacks when they follow the guidelines of our Seller
Protection Policy. At this time, the Seller Protection Policy is only
available for U.S. or Canadian sellers transacting with U.S. buyers, and
for U.K. sellers transacting with U.K. or U.S. buyers.)
Ship to the buyer's Confirmed Address if available
When you're not covered by the Seller Protection Policy, shipping to
a buyer's Confirmed Address can help to reduce your risk of dealing with
a fraudulent buyer. Since Confirmed Addresses are checked against the
billing address maintained by the buyer's credit card company, shipping
to a Confirmed Address reduces the risk that your buyer is using a
stolen credit card. Confirmed Addresses must be in the name of the
account holder, and thus Gift Addresses in someone else's name can never
be confirmed. Note: Only U.S., U.K., and Canadian addresses can be
confirmed at this time.
Use a shipping service with online tracking
Use a shipping service which can be tracked online (such as USPS,
Fed-Ex, or UPS) when you ship your goods, and keep the receipt as proof
of shipment should any dispute arise over the transaction.
Check out the buyer's reputation
Most commerce sites have forums where sellers can leave feedback on
buyers' cancelled purchases, speed of payment and general experiences.
Use extra care in taking orders from new buyers.
Look for buyers with long histories of successful transactions who have
a number of positive comments from other sellers.
See if the buyer is a Verified member of PayPal and has been a PayPal
member for at least a couple of months.
Accept payment from only one PayPal account per buyer
Be wary of payments made from multiple PayPal accounts for a single
item.
Note that PayPal's User Agreement forbids transactions where the seller
accepts payment from more than one PayPal account.
Limit credit card payments
Much of online fraud is committed using stolen credit cards. Members
with a Premier or Business account may change their Payment Receiving
Preferences so they will only receive bank account and PayPal account
balance payments from Verified users. This eliminates the risk of fraud
due to stolen credit cards, the most common form of Internet fraud, in
these transactions.
Be wary of buyers who are not concerned with costs
Con artists often want the items shipped immediately and do not mind
spending extra money for overnight delivery.
Conduct more checks on buyers of high value items
Certain types of merchandise that can be easily resold for large
amounts are especially attractive to con artists. This includes
electronics, computers and computer equipment, cameras, home
entertainment products such as DVDs and DVD players, sports equipment,
jewelry, and other similar items.
Beware of improper shipping addresses
Use caution when shipping to other countries, as these transactions
carry a higher risk of fraud. Per PayPal's User Agreement, you may only
ship to the countries on the PayPal approved countries list. If you ship
to a country not on this list, PayPal reserves the right to limit your
account access.
If the buyer's address is provided in the transaction details, ship only
to that address. Do not ship packages to a country other than where the
buyer's account is. For example, do not ship to the U.K. if the buyer
has a U.S. PayPal account. You can find a member's account type in the
payment's transaction details.
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