Music producers, let’s talk about PayPal chargebacks, disputes, claims. There’s a difference between the three of them but they’re all equally annoying. Now basically PayPal has these tools that help them to work with credit card companies of customers who have made purchases and it basically gives them an extra layer of protection as they’re purchasing from you the leasing producer. Now, the first time I got introduced to a PayPal chargeback I was shocked, I was like wait a minute. Not only this $100 purchase get, just took away from me immediately but, an additional fee was assessed on top of that and I’m just looking up here like yo, what happened, what is a chargeback?
Now, what I’ve understood a PayPal chargeback to be is basically when a purchase is already been completed, it basically gets reversed on behalf of the credit card company, it’s requested that it’s reversed and then PayPal basically takes the money from your account and then puts it on a hold while the details of this particular chargeback are pretty just discussed by both parties. Now, PayPal suggests that when you get a PayPal chargeback, look for the email of the person or the customer that’s tryna do the chargeback and contact them directly and sometimes they’ll hit you back and maybe they’ll have some kind of a disagreement about hey you sent the wrong files or maybe they didn’t receive their files, or maybe you’re not communicating with the customer, there’s many reason people do it, who actually use it for the legit way.
Now, there are some people on the other end just like in any other walk of life, who are gonna use this for their advantage and basically to take advantage of you. So, that being said, sometimes PayPal chargebacks are done by rappers who just basically wanna get your beats for free, and how do you get your beats for free? Well basically they use maybe their girlfriend’s or their mom’s credit card, they pay for the beat from your website where it’s basically under somebody else’s name, once the charge is made, and once it cleared, they receive their digital product and in turn you are left out on the dust because their mom or their girlfriend decided hey, I’m gonna go ahead and dispute this, I never bought beats from curtisskingbeats.com. So, then that’s how they basically have the right and they have the freedom to now contact their credit card company that then in turn contacts PayPal and then puts this whole thing on hold.
Now, there’s differences between chargebacks, disputes and claims and I actually took this right from the website, but the, a chargeback occurs when an already cleared transaction is reversed by the credit card issuer on request of their buyer and we talked about that. Now, the dispute, a PayPal dispute is the primary step of the PayPal buyer grievance complaint process. So, this is when the credit card companies are not actually involved, you just making a dispute as a PayPal customer and user on behalf of your PayPal account, you’re saying yo, this producer that’s selling me beats did not send me the beats or the right beats, this process actually lasts for about 45 days unfortunately. Also, a PayPal claim is the secondary step of a PayPal buyer grievance complaint process. So, it can basically be a dispute at first where no money is taken away and then a claim is where the money does get taken, just the same way as a chargeback and then it’s elevated.
Now, here’s what I learned from my wars in PayPal chargebacks, because what I’ve noticed is that they happen a lot around the holiday season, I don’t know people are feeling lonely and people are feeling like yeah, I’m trying to come up, I’m trying to have me a good Christmas and not pay for it. I don’t know what it is but during that time, I prepare myself for this. Here’s what I’ve learned. From talking to PayPal and luckily with me being a very loyal PayPal customer, they understood where I was coming from and realised hey, I gave this digital product and this person already downloaded it, they said cool. If you can show us proof that they downloaded it, you’ll win this case in no time. Huh. So, then I started thinking OK, how can I prove that. Now I used to use wetransfer.com and you know when you send a we transfer out of the actual files, when you have these situations happen, here’s the way to first combat it. I used to use we transfer like I said earlier and it will send you an email that basically said, hey this person has downloaded this file, I can take that screenshot, go to my PayPal chargeback open case, check it out, actually upload that information to this actual case and once it’s uploaded I tell them look, this person already downloaded it and show proof and then you win. And usually it’s about a 30-day process from when you find out if you won the case, but sometimes they can kinda elevate it once they see yo this is some fraudulent activity going on and then you’ll win in your favour, you’ll get your money back plus they additional fee that they charge you and then that person over there is just gonna be stuck miserable because they still had to pay for the beat that they should’ve paid for to begin with.
One of the beautiful features of the new Airbit website is that you can do the same thing that I explained to you with the we transfer, you can do the same thing by looking at your sales download history. Some of you may not even know that you can do that. But if you go over to your dashboard and you click down on Sales and then go down to your orders and then actually look within a particular order, just pick one, let’s pick this one. You pick an order and you look, it’ll actually show you when this customer downloaded this file, once they download it, it makes their chargeback null and void. And then once again you have saved your back, Airbit’s got your back, PayPal’s got your back. Look, when these things happen, understand they happen to the best of us, there’s a way to fight it, I know it’s frustrating to be selling out here and people are trying to take advantage of you but look, that’s human nature sometimes, no worries. That is the way that you fight a chargeback.
The same way you do that, you upload your evidence, you extend communication on the phone, actually the first thing I would do is probably get on the phone and call PayPal and just let them know what’s going on, upload your information. In fact, I’ve had a buddy of mine that suggested when you sell exclusives because chargebacks can still happen, they’re higher in price, send out a physical copy to their mailing address that they provide on PayPal. Send them a physical copy. Once you send them a physical copy via UPS or your post office, get a tracking number, once that package has been received, it will let you know, you’ll be able to provide that information. It’s almost like going to court, you’ll be able to provide that information to PayPal and you should be winning your case in no time.