Chargebacks, what do I do!?

PhonicUK
I get through a couple of these every month so I've been through it all a few times. For any non-physical goods, you are entirely out of luck and without any recourse if the dispute is made via the credit card provider as you have no way to prove who actually made the purchase. On the flip side the purchaser also has no recourse if they are unhappy with non-physical goods So for non-physical goods, they can only request a charge back in the incidence of their card being used without their permission. If this is the case then you might as well forget about it because you're not going to win. No 'terms of service' can protect you from this. The only exception to this is if you deliver a service, but then you have to be able to prove who you delivered the service too so this only really applies to 'physical' services (think building work, etc) Also once it's done Paypal are going to charge you a chargeback fee of about $20/£14. The only way around it I've found is that for larger transactions, you send them a registered/recorded letter/package that they have to sign for to prove that something was delivered. But even that isn't a guarantee. For fraudulent chargeback cases I've had with people buying McMyAdmin, I have had some luck proving that the user actually downloaded and used the software (the IP address of the purchase matched where it was installed, and the IP was in the same city as the billing address) - it wasn't enough to 'prove' that it was fraud but it was enough to make them look more thoroughly and find in my favor.