Lost over $1000 in Paypal disputes ! Propsing Idea


#1

In the past 2 weeks, I’ve had some very large orders ranging from $100 to $300 per order. All these orders were complete and I was on track to receiving the money. I get an email that says a PayPal dispute was opened and my order was canceled.

I’ve had numerous PayPal disputes, sometimes 3 months down the road. If it was $5, I wouldn’t be so upset, but I’ve lost $500 in the past 2 weeks and I’m really losing faith in the system. However, to anyone feeling bad about losing money, I read the following quote and it made me feel better. “It’s part of doing business” which translates, some people are going to screw you over but that’s what comes with running your own business. It sucks, but it’s reality.

The only thing we can do is try our best to avoid such situations and here’s my proposed idea. There should be a ranking system that rewards buyers.

For example
If a buyer has purchased > $100 in Fiverr orders then they automatically receive %2 off all future orders.
If a buyer has purchased > $300 in Fiverr orders then they automatically receive %4 off all future orders.
If a buyer has purchased > $500 in Fiverr orders then they automatically receive %5 off all future orders.
If a buyer has purchased > $1000 in Fiverr orders then they automatically receive %7 off all future orders.
If a buyer has purchased > $2000 in Fiverr orders then they automatically receive %10 off all future orders.

This promotes the buyer to keep their account and build on it. Right now, all a user has to do is create an account, purchase $500 in orders and then file a dispute. Get their money back. Get banned. Re-open another account and do it again. There is no stopping them.


#2

There was some discussion some time back about something like this. I can’t remember when exactly but it was mentioned when the CEO did a Q&A on Twitter. The idea of making the system along the lines of Ebay where getting good reviews as a buyer is almost as important as for a seller. Hopefully steps will be taken to make this happen at some point but I am not sure the financial incentive suggested would be effective, reputation would be a better way to go I think.


#3

I don’t think buyers are going to get excited about saving 2%. 2% of $100 is $2. That’s hardly a lot.

Buyers can negotiate discounts with sellers. If I’m charging $50, maybe I’m willing to send a custom offer for $40.

On the other hand, I believe that most of my prices are low enough, so haggling is annoying.

Are they opening another PayPal account? I doubt it, that’s a huge pain in the butt. I think Fiverr needs to keep track of delinquent PayPal accounts and delinquent computer ID’s (I forgot the term for that).

They need to crack down against crooked buyers.

As for us sellers, I don’t know what we can do. I haven’t been victimized much by Paypal disputes. My only struggle are clients that have this attitude: “If I don’t like your work, I deserve a refund.”

I don’t know what to do about those people. Right now my completion rate is 94%, so I can afford to refund a few orders, but I can’t keep doing this forever.

On the other hand, my overral rating is at 4.7, so I can’t afford more bad reviews.