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Assume I'm a buyer and I want to guarantee a seller that I will not charge back my Paypal or GoogleCheckout payment. Is there any binding mechanism to do it in those systems? Or may be there is a similar online payment system that has this feature?

  • Wiring money works like this, does that fit your needs? – C. Ross Apr 23 '13 at 12:00
  • @C.Ross Yes, I know. But I'm looking for a more convenient online payment method with immediate transfer like in PayPal. – Alexey Kalmykov Apr 23 '13 at 12:17
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    Use BitCoin? :) – Adrian Petrescu Apr 26 '13 at 17:55
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    I shipped an item sold on my website to France. There is no tracking to France. I had the customs declaration stub and the post office receipt. When the buyer didn't receive his item, he filed a case against me with Paypal. They froze my account. And though I had proof it was shipped, they took his side and took money out of my paypal account to pay him his money back. So I am out the item and the money, because of France's postal system. How is the item not getting there my fault? – user24029 Dec 13 '14 at 5:24
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    @Linda: It's nobody's fault, but it's considered a risk of doing business. Sometimes it's worth charging/paying the extra for shipping insurance, especially if you don't have tracking. – keshlam Dec 13 '14 at 16:49
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Not really. You can promise, but that would not prevent you from actually doing it. The seller can then claim "he promised" to PayPal, but PayPal usually don't care about seller claims, and I assume Google wouldn't either. These companies only care about their bottom line, and do not take any risks, so in case of chargebacks - sellers are usually screwed.

The seller can sue you in court, though, as your promise is in fact a contract, but if you're in a different country it may be a hard thing to do. That is why many sellers do not ship internationally on eBay, for example.

An irreversible payment option would be a wire transfer through your bank or companies like Western Union or MoneyGram. It is more expensive, true. But you do get something in return, as you can see.

  • Do you think Skrill has the same "benevolent" behavior on buyer like PayPal, or they are more precise/honest ? Real experience to compare this parameter or indication where to find one? – Alex 75 Feb 8 at 19:21
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This is not entirely a serious suggestion, as in, I can't really recommend it, but it immediately came to mind as meeting your request for an immediate online payment system without chargebacks:

Bitcoin inherently has no chargebacks.

Of course, both parties have to be willing to use Bitcoin, and exchange the money for more conventional currency at both ends with accompanying transaction fees. And the recipient has to wait a few minutes for certainty the transaction is confirmed. And there is the legal uncertainty, and the varying exchange rates, and so on. But it does meet your stated criteria.

  • There's no need for the receiving party to exchange the money for more conventional currency; it's just often convenient presently to do so for many people while Bitcoin is in its infancy. They could instead use the bitcoins they received to buy other things. If you do desire this convenience though, I believe there are services like Bitpay that attempt to remove the exchange risk (but I haven't fully vetted them myself). – Michael McGowan Apr 25 '13 at 14:31
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Depending on where you are - in the UK at least, you can do a BACS transfer (direct bank transfer) if the seller provides his/her bank account sort code and account number. In the UK this is free and if both banks support "Faster Payments" it is more or less immediate.

The same system may exist elsewhere, I don't know.

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Here's PayPal's policy:

If you meet certain conditions and you are a US account holder, you will be covered in the event of an unauthorized payment, an item not received claim, or a chargeback. Check out our Seller Protection Guide or FAQs for more information.

Here's a specific item in the FAQ:

Will Seller Protection give me access to funds if a claim or a chargeback occurs?

PayPal will place a temporary hold on the transaction amount while we make sure the transaction is eligible for coverage. Once we validate your shipping documentation, if the transaction is covered under Seller Protection, we will lift the temporary hold and restore your access to the funds. If it is not covered, we will return the funds to the buyer's account and you may be responsible for PayPal's chargeback fee, if applicable.

The odd thing is that the official PayPal FAQ on this doesn't seem to define what you need to do to be "eligible for coverage"

From my experience as a seller, PayPal has a dispute system that kicks in on chargeback. If you can provide reasonable documentation as specified in the FAQ, the seller will receive the funds.

Update:

Google Checkout seems to have a similar policy (source):

We'll evaluate the chargebacks you receive and, whenever possible, fight them on your behalf. Your Checkout account won't be debited for the chargeback if Google can dispute it successfully with the supporting documentation we’ll ask you to provide.

It seems that the Google Checkout chargeback policy applies only for goods, not services, as documented here. Seller beware!

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    Paypal almost never protect against chargebacks (almost because there might be an obscure case where they did). When a chargeback arrives, they just take the money and say "the credit card company determined against you". I have never heard of any other chargeback outcome on Paypal. This is the perfect scam, and people use it to their advantage. The only way for sellers to avoid it is to not use Paypal. – littleadv Apr 23 '13 at 22:53
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    @littleadv: Just curious... are you speaking from experience as an individual (ie. selling odds & ends on eBay) or with a Standard/Advanced/pro merchant account? – Pete Apr 24 '13 at 0:08
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    fortunately I have never had chargebacks on my (very occasional) sales on eBay. Yet, I'm reluctantly using PayPal just because there's no choice, not because I trust them to protect my rights (I don't). When I'm a buyer, I use my credit card. Working in the credit card industry, I know that there's little protection to the seller to begin with. From my experience with eBay (I had one "unsatisfied" buyer that wanted to get something for free) - I know that the little protections left on merchant accounts - don't exist on eBay/PayPal. – littleadv Apr 24 '13 at 3:20

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