My textbooks company was recently a victim of a credit card fraud, causing us to lose around $4000 USD. It is somewhat typical, someone bought a whole bunch of textbooks from our site, and then suddenly email us to have the address change to Niger, Africa. It is quite obvious that it is a fraud, but my staff who processed the order was inexperienced and shipped out the books - causing us to lose $4000.
To make matter worse, we initially send them an invoice through Google checkout and Google cancelled the transaction because it is associated with “suspicious activity”; so my staff send the scammers an invoice through Paypal AND it went through!
You would think if Google checkout can detect a fraud, paypal should be able to - but NO!!
Not only was Paypal not able to detect the fraud, after we lost the chargeback, we even have to pay ANOTHER fee to compensate for the loss of chargeback!
Lets see how Google checkout is BETTER than Paypal:
1. Fraud Detection
How does Google Checkout protect me from fraud?
Google Checkout performs industry-standard Address Verification System (AVS) and Card Verification Value (CVV) checks to prevent credit card fraud. Google Checkout also protects you from fraudulent activity with the following:
Advanced risk modeling
Google employs advanced risk modeling to detect fraudulent transaction cues across Google services. Google also actively leverages external, cross-industry resources-such as worldwide fraud blacklists-to prevent fraudulent users from accessing Google Checkout in the first place.
Automatic fraud detection
Google proactively identifies and filters out fraudulent transactions. All fraudulent transactions are immediately cancelled after being detected. Any active orders associated with the same credit card will also be cancelled to protect you.
Supplemental manual review
If a transaction appears to be high-risk, Google will restrict the order to protect you from shipping the order to a fraudulent buyer. During this time, our Google Checkout specialists will review the situation further, cancel the transaction if it’s fraudulent, or release it if it’s valid. We may also contact you directly as a backup precaution.
Information sharing
Google Checkout provides buyer verification information within the buyer’s order details to help you run your own fraud checks as needed. If you’re concerned about a particular order, or if you’re unable to contact the buyer with the information we provide, you have the option to cancel the order to avoid further risk.
Chargeback resolution
All merchants are covered by our Chargeback Resolution Policy: our specialists will evaluate all chargebacks you receive through Google Checkout and, whenever possible, dispute them on your behalf. As an additional benefit under our Chargeback Resolution Policy, we also guarantee payment for all transactions that are eligible for Google’s Payment Guarantee Policy: If you receive a chargeback on an eligible transaction and provide Google with sufficient supporting documentation within ten business days after receiving a request from Google, Google will reimburse you within a week of receiving and reviewing the information.
Paypal? None of these stuff.
2. Chargeback Protection
The Payment Guarantee Policy is an unique benefit under the Chargeback Resolution Policy that offers you even more protection from unwarranted chargebacks. Here’s how it works:
For all eligible transactions, we’ll completely reimburse you for any chargebacks resulting from claims of unauthorized purchases and non-receipt of goods. To qualify for this additional protection, you must meet the following criteria:
You shipped the order to the buyer’s shipping address (as specified in the Google Checkout Merchant Center or the Google Checkout API call) according to the shipping method and timeframe agreed upon when the order was placed.
You provide a tracking number or other proof of shipping for transactions less than US$250.
You provide proof of delivery with the buyer’s signature for transactions greater then US$250.
You receive a request from Google for supporting documentation and provide this information within ten business days.
You’re currently displaying a clear return policy on your website. (Learn more)
The disputed order doesn’t involve intangible goods.
You abide by the Google Checkout Terms of Service.
At a minimum, Google will reimburse you for eligible chargebacks up to $10,000 per year. If your gross Google Checkout sales exceed $1 million per year, we’ll protect you for 1% of those sales. For example, if your Google Checkout sales are $2 million, we’ll protect you for up to $20,000.
Paypal? None of these stuff.
Conclusion? Google checkout is WAY cooler than Paypal.
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