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3. Selling with PayPal > 26. Avoid Chargebacks on Digital Goods

Avoid Chargebacks on Digital Goods

Make purchases of digital goods eligible for PayPal’s Seller Protection by mailing physical goods.

PayPal’s Seller Protection Policy [Hack #25] limits your exposure to fraud, provided that you follow its guidelines to the letter. The problem is that the policy applies “only to the sale of physical goods, and not to any services, intangible goods or sales or licenses of digital content.” So what’s a digital-goods merchant to do?

Shipping a Physical Version

The solution is to sell physical goods. Ship media, such as a CD-ROM, containing your software or e-book. You can still grant your customers immediate download privileges for the material they will be receiving on CD or floppy, but ship a physical product as well. Be sure to offer tracking of the package.


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