Fear of CC chargeback via paypal

Hello, I am using paypal module on my site.

Now when I check paypal.com some of the payments are from an unconfirmed address. Based of paypals seller protection, if the credit card used at check out was charged back(stolen), then I lose the money and the good that i shipped out. So my question is, are all credit card purchase via paypal unconfirmed? How can I tell if they used credit card of if they used their paypal.

Im guessing if they use credit card via paypal as a gateway then it will unconfirmed and if they already have a paypal with credit card info then teh address will be confirmed.

Anyways should I be worried?

To reduce (not eliminate) any chargeback risks I would suggest you use the paypal express checkout module.

I have mine set to only accept paypal confirmed addresses, in other words you will only ship to the purchasers home address.

This may not be convenient for all customers.

Therefore I also offer google checkout as an option, and they have declined several of my customers transactions, but they have always come back with a different card which was accepted.

thats a good idea! is google checkout better for unconfirmed address?

Also you didnt answer my question as to if a address is unconfirmed whenever they use credit card.

In my store, none of the purchases via google checkout have had any problems related to chargebacks.

If you set up paypal to accept only confirmed addresses your customer will have to verify their home address with paypal before they can purchase from you.

This is done only once and then everytime they use their paypal account it will be with a confirmed address.

nice, I will do that. I just hope it doesnt deter customers from checking out.

I just hope it doesnt deter customers from checking out.
Mostly it will deter those using stolen cards and wanting items shipped to another address versus the address associated with the card

Hey so how exactly can I set this up? Does it make it so the customer makes their address confirmed by registering? or does paypal know when the shipping and billing match? Please tell me, as I will do this ASAP. I am afraid of losing all my goods to theft :(

Also, this wouldnt be as confusing if paypal could tell us the billing address of the CC and the shipping address. Atleast then we can use judgement and deny orders that are really distant!

The best answer will be obtained by contacting PayPal directly. When you login to your PayPal account, there's a "Contact Us" link on the very bottom of the page. If you select "Call", it will give you a phone number to call and a Web PIN to expedite your authentication. The representative you speak with will be able to clarify which circumstances will grant you Seller Protection and which will not.
As discussed above, a "confirmed address" will give you protection. However, you will want to get some clarification on how PayPal handles those buyers who purchase without having or creating a PayPal account, and whether a simple AVS check is all they do ... or whether your business can be granted special exceptions or not or maybe it has fewer protections due to the nature of products you sell?

Again, the PayPal rep will be able to clarify for you, and help you make whatever settings changes are required in your PayPal account.

Hey thanks for the reply. I should call them as I have too many questions/concerns.

I called paypal and they said anyone using a credit card (but not a PayPal account) will be unconfirmed. They said if billing matches shipping address, then you will be partially eligible for protection, but wont be covered for chargebacks.

I guess as long as I am partially eligible, it means that it is unlikely to be stolen.

This didnt make sense to me because if their billing and shipping matched, paypal should just make it confirmed and offer full protection. I mean, what thief would steal a CC and ship to the owners address?? I guess thats paypal protecting themselves. He did tell me that I could win the dispute in cases like this, if I have evidence. Anyways I thought I would pass on my info. I called twice to confirm these rules FYI.

but wont be covered for chargebacks...

This didnt make sense to me
Being outside of paypal as it is a CC without a PP account - -
One can go to their CC account and cancel the payment
Fully outside of PP

Hi Wildchick,

Which country are you in?

If you're in the UK you can join the Federation of Small Business for around £130 a year and then get a free merchant account with Sagepay/Streamline so you can take payments with a customers card.

There's a Sagepay Direct/Form module available for Zen Cart.

I find Paypal is too much on the side of the buyer. With a merchant account you get better protection as the banks spend more time investigating chargebacks. :smile:

plygmy, sorry for the late reply. Yes i will check it out, but right now im new to ecommerce. My store has only been open for 3 weeks so I dont get many transactions, but once I get a lot I will definitely join.

BTW I love zen-cart :)

My next step is to improve my store layout with the contact us and my phone number right on the front banner, to look more legit :)

BTW im in USA.