I'm staff on a server and their PayPal account got locked because of a person who intentionally bought $50+ or so worth of ranks and then chargeback a after for (not really)unauthorized payment and the owner denied giving chargebacks. He lost the debate and got his PayPal account locked
not much you can do since it has happened maybe next time use a cryptocurrency like etherium so they cant charge back
make sure the server admin has some sort Refund Policy Refund Policy All subscription fees (including any Game Card redeemed for subscription services) and fees associated with virtual items/ Currency, if any, are payable in advance and are not refundable in whole or in part. YOU AGREE THAT (YOUR SERVER) IS NOT REQUIRED TO PROVIDE A REFUND FOR ANY REASON, AND THAT YOU WILL NOT RECEIVE MONEY BACK FOR PRE-PAID TIME AND/OR VIRTUAL ITEMS/CURRENCY WHEN AN ACCOUNT IS CLOSED, WHETHER VOLUNTARILY OR INVOLUNTARILY. Additionally, as products or services (such as Game(s) or Virtual Items) that are downloadable are deemed used promptly upon completion of your purchase, no refunds will be made for such purchases. Unless otherwise required by law or permitted by this Agreement, downloaded products, account keys purchased to activate or unlock downloaded software (including any Game(s) and/or Game Client(s)), and Virtual Items are not refundable or redeemable for any sum of money or monetary value from (YOUR SERVER) at any time.
No matter what your refund policy PayPal almost always sides with the buyer, so the best solution is always to refund ASAP, cancel the users rank or whatever, and move on.
To add, many larger servers ban you if you chargeback, which I believe is fair. It really is too easy to abuse. I believe BuyCraft has chargeback protection, albeit not for free.
Can anyone here briefly explain what chargeback policies are present? Can I ensure the player can't chargeback after some period?
If they request the chargeback from their credit card company I think it's 6 months, and for a PayPal refund request it's 2 or 4 months depending on whether they claim the payment was 'not as described' or 'unauthorized' After >10 years of digital sales I recommend not even bothering to contest, it'll almost always go against the seller and can cost you 20$ or account closure.
best way is just not using it TBH since the system is flawed to begin with even if you have policies and what not, they generally dont care if customer cite "i didnt do it someone like a hacker did it"
Having a well-written chargeback policy may reduce chargebacks, at least that's what Buycraft says. Cryptocurrency sounds good but not many have access to it. If you are a big server (eg: Hypixel), you'd be facing with at least 50 chargebacks a day. You'll manually need to strike back each and give a valid reason and cooperate with the chargebacker. Failing or delaying in doing so will make the chargebacker automatically win. Doesn't seem like it's worth the time, or maybe it is if you're selling expensive items like gold and platinum. Store offer packet might be a solution, also an unobtainable one. Highly off topic: This is one of the reasons why Amazon doesn't use PayPal.
or accept it via mediums that cant be charged back, maybe like gift cards? since yes not a lot of people or players will have access to it but generally i rather earn occasional 5$ than earning it more frequent but chargebacks depend if you have enough money chargeback can be negated by your profit you could also just ALLOW refunds with consequence of losing rank access if they could get 100% refund they are less likely to chargeback (of course you might have to fill in the transaction fees which isnt peanuts in paypal but it's smaller then the chargeback fee itself)