Some of you who play video games may be familiar with the website www.twitch.tv well back in May I received three donations to my live stream channel from the same person totaling $100. Then three months later the person charges them back one by one. I disputed this because he said he did not authorize the PayPal transactions even though I know he did because I thanked him in Skype afterwards and he said “You’re Welcome”. PayPal has been trying to get the money back from my account for ages and I finally gave in and payed it this morning after they called me and threatened that my account would be shut off due to fraud.
The problem is now that not only have I had to pay back that money that I shouldn’t have had to pay back, I have also owe extra PayPal charge-back fees. This is ridiculous and there is nothing I can do about it because there is no physical item that I can show postage receipts for. If you own a live stream channel on Twitch do NOT use PayPal for donations or you will be sucked into the PayPal abyss of their fraudulent chargeback system that favors buyer accounts. Here is a page we found over at PayPal that makes many claims but just doesn’t live up to them, here is what we found on their webpage: A Wealth of Protection for Our Sellers
PayPal protects sellers in ways that many other financial institutions don’t. For instance credit card companies often charge for their fraud prevention tools
This statement is false, PayPal does indeed suspend your account for fraud or asses fees if your account receives more then one chargeback!
PayPal’s fraud experts work behind the scenes, monitoring activity and possible fraud indicators to help ensure an extremely safe network
PayPal allows Chargeback Fraud on Twitch Gamers
This is also not true, because for years PayPal has allowed buyers to take advantage of sellers by both getting their money back and keeping the product where the buyer pretends to send back the item but sends back different stuff or no item at all. PayPal has not put a stop to this behavior and has actually allowed it now for years. The only solution to this problem is to no longer be the arbitrator for returns. No longer refunding money to the buyers for any reason would stop the fraudulent behavior.
So as you can see PayPal’s fraud continues. They will try and convince you that PayPal is safe, but it’s the opposite! Just ask the millions of consumers who agree but yet still use the Pay Gate due to high popularity and monopolization of the online payments market.