If you do business online and receive payments via Paypal, you probably already know that Paypal does not protect sellers of digital downloads from unscrupulous buyers. A buyer can, and many do, purchase an item and then immediately file a Paypal dispute. Many sellers will just issue a refund to keep their Paypal accounts in good standing, even if they know that the dispute has been filed fraudulently for the sole purpose of receiving the product for free.
I have heard over and over in forums that there is little you can do to fight back against this type of Paypal fraud, but that isn’t exactly true. You can’t recover the money they sent if you refund, of course, but you can prevent them from using the product they bought on a website. Continue Reading