I was a mod on a server that went down just recently because of some person who issued a large amount of chargebacks. First of all, he purchased a lot of in game items then later on I believe he issued chargebacks on all of them. I asked the owner what really happened, and he said that this guy made multiple accounts and bought each of them a rank.. then charged them all back days later.. this owner of an idiot unfortunately tried to fight the “unauthorized payment” ( which i believe is almost impossible to win) cases on paypal and lost them all which led to the server’s downfall(funding wise of course). Does this happen often? What should he have done?
My old server CastleRaid had a similar situation; we had a payment of $250 come in; we were of course extremely happy; we bought a better host; worlds; plugins etc. A few days after the person chargebacked and we were down -$80 in PayPal. This is very often; trying to appeal a process like this is impossible to win, Im not even sure if I know someone that won this process. My only advice would be to wait a couple of weeks before using the payment.
That's really unfortunate. Do you just give full refunds now, or how are you handling chargebacks now?