Hey everyone! So I’ve been selling Diablo 3 Gold for BitCoin (BTC) at Ogrr.com, and I also have experience selling WoW items/gold/accounts in the past. I’ve seen the pros and cons of different payment methods over the years, and I REALLY like BTC for this type of trading. So much so that I attempt to deal exclusively in this currency and plan to from now on (as long as it’s stable).
I’ve had quite a few inquiries due to my competitive pricing for D3 gold with the BTC discount. People want the discounted rate BUT they also want to use PayPal or some other payment method. When I refuse to do this, they get upset. In this thread, I’m going to try to outline with full transparency why I generally won’t accept other payment methods and especially why I won’t discount them to the level I discount BTC payments. I use PayPal as an example, but really, this can apply to MoneyBookers, Dwolla, and even Direct ACH Bank Transfers as they all have similar or equivalent issues. I’ve both experienced and witnessed these issues over the years, and I strongly believe BTC is the answer.
Why I Generally Avoid PayPal Payments for Virtual Item/Currency Transactions
The reasons I avoid PayPal is I typically have to pay a fee (2.9% + $.30 per transaction), but most importantly, I run the risk of a fradulent chargeback. What this means is you file a dispute with PayPal saying one of two things so that after you get the gold, you also get your money back. You typically have up to 30 days to commit this fraud, so it’s difficult for me to keep tabs on it when it happens. Additionally, when it happens, my PayPal account can be FROZEN, preventing me from withdrawing, receiving, etc.
Fraudulent chargebacks can come in two types:
1. You tell PayPal you never received what you paid for. As a rule, I keep and can provide screenshots to refute my case for every one of my transactions. This works 45% of the time in my favor, and 55% in the case of the fraudster if I kept good records.
2. You tell PayPal your account was hacked and you didn’t send the funds yourself. If you used an anonymous VPN (or proxy) to access your PayPal account when you sent me the funds, it would appear this was true. You win this case 99% of the time. I have nothing to prove to PayPal that you absolutely were who you said you were at time of purchase.
There is very little I can do to mitigate fees and the risk of fraudulent chargebacks other than an honor/reputation system with each individual seller, which can generally be unfeasible. This is especially true for private buyers who only want to make one or two purchases and that’s it.