Just got my first fraudulent customer...*sigh*

[Jonathan]

Well, PayPal just sent me an email (manually typed in PayPal.com and checked),
and well I just learned I got hit my first fraudulent customer

I barely got enough free $$ to cover it, even though its minor
(just $18); still, I'm really mad; all my customers, I ensure I have
good relations with on IM.

Of course, I now realize how niave I was, to use PayPal
as the method to get the person's name, address, etc.

Now I feel really betrayed, and very wery of this hosting
I'm about to give to a Canadian friend I've known online
for a good two years+

Just had to vent, but whats some really intense methods
of making sure that I don't get another fraudulent customer?

[-Oz-]

What did this customer do?

[Frank Hagan]

I thought Paypal covered the issue if a fraudulent credit card was entered by one of their users, and they approved the payment. They would take the money back from you, but you don't get the $25 charge back fee you get with the other credit card vendors.

[Buddha]

Sorry to hear that Jonathan. However.... Welcome to the business of hosting!

I thought Paypal covered the issue if a fraudulent credit card was entered by one of their users, and they approved the payment. They would take the money back from you, but you don't get the $25 charge back fee you get with the other credit card vendors.

From Paypal's Site:

chargeback_risk

fee schedule

Seller Protection Policy

You have to comply with the Seller Protection Policy for them to waive it. "Seller Protection Policy does not cover digital goods and other electronically-delivered items."

[Jonathan]

Yea its kinda crappy but I guess I can consider this "initiation"
Still, lucky it was only $19 I suppose

[Frank Hagan]

Well, I knew they would reverse the charges upon a customer request, like in a dispute when the customer requests a reversal. I didn't pick up on the chargebacks for fraudulent charges "weeks or months after acceptance".

Their $10 is still less than the other credit card "non-merchant accounts" I've investigated, though. I think the average was $25.

[Jonathan]

Hey, anybody know an alternative to PayPal, who's seller protection
covered Eletronical goods/services (i.e., hosting/web design)?

PayPal just slapped a $10 "Assessment"
fee on me when I accepted Liability.