We use PayPal Pro in the UK with the options of
1: Payment through PayPal - used by 30% customers
2: Payment using 3D, managed by PayPal - the other 70%
 
We get charge backs from time to time despite considerable care over accepting orders :
Like address checking larger or suspicious orders.
Like not accepting delivery to a different address without first contacting the customer for a reason.
 
Also our experience is that we get much more trouble with orders from Italy and the Netherlands but none from France, Germany and Scandinavia.
 
Because we are in effect a supermarket type operation, margins are very tight so any charge back has serious impact on profitability. For that reason, let alone inconvenience, we try hard like this to avoid getting them.
 
Despite PayPal's claims to support its customer in fighting charge backs, over the years we have never had a successful challenge and have had to pay out many hundreds of pounds.
 
We have the shipping tracking data, we can give IP address and copies of e-mail correspondence - but no matter how much info we provide, PayPal always tells us that the card company agrees with their customer that we must refund the payment.
 
PayPal is clearly liked by a third of our customers, and PayPal's fees are very reasonable. So it is a no brainer except for this issue
 
Additionally, unlike some UK banks that I have looked at, PayPal doesn't charge for refunds. And we do have a number of product issues each month and have to refund on out of stock and unavailable products from time to time.
 
An order can easily comprise a dozen or more products. We share stock with our high street shops so we can't use stock control 100%.
 
I am interested to know how you see this issue, what you do about it, and any recommendation you might be able to give me?
 
Thanks
Chris

As an additional safeguard, I've asked ViArt to add an option to require users to very email address by validating a link. They wanted $200.00 for such customization, so I decided not to continue with this at the time, but more and more thinking about doing so.

That is a lot of money, Dan, but I feel I must do something. I wonder whether we could find two others to share this - $50 each is bearable?
 
My only concern is whether reliable customers may find this an irritation.

I have just made a purchase using 2CO payment processing - the final screen says
 
__________________________________________
Your order was successfully submitted.
 
Your order is pending, your card has not yet been charged.
We will process your order within 24 hours, once it has
passed a series of fraud checks.
 
Thank you for shopping with us!
__________________________________________
 
Such is the issue for us all 'though I am not clear what fraud checks they can do - I have paid using 3D security.
 
Oh! and that's another grip, even when a customer pays using 3D they can still initiate a charge back - what happened to taking care of, and being responsible for, your own personal data and security?

Can anyone contribute to my question in the last line of my posting?
 
Or does no-one else have the charge back problems we face - and if not, what payment systems do you use?

Chris, many of the goods I sell, are Digital Goods, and surprisingly enough, I rarely get chargeback. Although whenever I get them through PayPal.. I NEVER win.

Are you saying, Dan, that all my problems are because I use PayPal for everything?
- should I, perhaps, find an alternative payment provider for non-PayPal customers do you think?

No, was just saying that when people have sent checks and stuff, it's very hard for them to say they didn't want/do the transaction.
 
However, when they utilize payment services like Paypal, it's easier for them to argue that this is them.
 
I do indeed feel that the address verification method would be the best, but we would need some supporters. Yes, I'd be willing to do the $50.00

OK - I am in at $50

I've requested ViArt to update the price to 100.00 and see if they will allow this feature to be done for the two of us.

Yes, we can do this feature for $100 i.e.  
But you should know it won't protect you from the fraud orders, usually people who use stolen credit cards use real email addresses on free sites, so it wouldn't be a problem to approve such link. Some real anti-fraud protection could be an IP check or the check of the first 6 digits of the credit card to find out if the credit card holder and the issuing bank for the credit card are located in the same country.
 
Regards,
ViArt Team
 
 

Thank you for that, Vera.
You suggestion is interesting, would this be very expensive to implement?