Difference between revisions of "Support:Chargebacks"

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Have you been charged back by a user on your panel? This page will tell you about how chargebacks happen and what you can do to deter - if not prevent - them.
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==== What is a chargeback? How does it happen? ====
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Chargebacks are quite simply the description of what happens when a user who has made a purchase on your Prometheus installation contacts PayPal or their bank in order to request that the funds they transferred was a transaction not done by them or was one that was never delivered. And while this is an excellent method for when you've been scammed on Craigslist or a with a shady iPhone case seller, it is a double edged sword as it means that you lose all of the funds for a service that was received.
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And while there is nothing that you can do to stop chargebacks from happening, there are methods you can take on Prometheus after a user has chargebacked in order to prevent them from being able to do it again.
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==== Why are chargebacks detrimental to my business/server? ====
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Every transaction made via PayPal incurs a 3.9% fee. This is why when a user makes a $2 transaction via PayPal, you only get $1.92 sent to your PayPal. However, when a user chargebacks, you lose any of the funds that were given to your account, plus the 3.9% transaction fee by PayPal. And there's nothing you can do to prevent it, even if they're using the PayPal Resolution Center.
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==== How do I detect a chargeback? ====
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You can find any chargebacks fairly easy on your PayPal activity dashboard. Unforunately at this time Prometheus has no built in way to detect chargebacks, so you'll need to manually check PayPal to see if any funds are missing. You can find that typically a chargeback will look similar to this:

Revision as of 20:13, 9 June 2016

Have you been charged back by a user on your panel? This page will tell you about how chargebacks happen and what you can do to deter - if not prevent - them.

What is a chargeback? How does it happen?

Chargebacks are quite simply the description of what happens when a user who has made a purchase on your Prometheus installation contacts PayPal or their bank in order to request that the funds they transferred was a transaction not done by them or was one that was never delivered. And while this is an excellent method for when you've been scammed on Craigslist or a with a shady iPhone case seller, it is a double edged sword as it means that you lose all of the funds for a service that was received.

And while there is nothing that you can do to stop chargebacks from happening, there are methods you can take on Prometheus after a user has chargebacked in order to prevent them from being able to do it again.

Why are chargebacks detrimental to my business/server?

Every transaction made via PayPal incurs a 3.9% fee. This is why when a user makes a $2 transaction via PayPal, you only get $1.92 sent to your PayPal. However, when a user chargebacks, you lose any of the funds that were given to your account, plus the 3.9% transaction fee by PayPal. And there's nothing you can do to prevent it, even if they're using the PayPal Resolution Center.

How do I detect a chargeback?

You can find any chargebacks fairly easy on your PayPal activity dashboard. Unforunately at this time Prometheus has no built in way to detect chargebacks, so you'll need to manually check PayPal to see if any funds are missing. You can find that typically a chargeback will look similar to this: