Providers 180 Days PayPal risk of refund request from clients. How to protect against it ?
I have recently received $600 order from one single client. He made the paypal payment and I start working to provide the servers. It took me 2 days to fully provide the order. 5 days later he placed another identical order and made another $600 payment. Minutes later PayPal blocked both first and last $600 payments (total $1200) for this reason:
"You have received a payment that we believe may not have been authorized by
the PayPal account holder. Here are the details of the transaction we are
I have looked over the client details and paypal account and they are totally different (name,address,email,etc). The client told me that paypal account belongs to his sister and he got his account limited due to some dispute and the problem will be solved in a few days. Later on the client asked me to refund the 2 x $600 payments because he rather use different payment method which I didn't because I need to see what paypal have to say. I have tried to contact the paypal account owner using the paypal email used for the payment but its not responding.
I have provided all the details asked by paypal. Now I'm waiting for PayPal response.
I need to know how VPS providers are protected against such situations or in general against 180 Days PayPal Dispute Filing Window. As I know intangible goods and services PayPal disputes are the most high risk products and they rarely in the favor of VPS providers. I wonder how big providers protect themselves against similar situations ? I should not provide any services to the clients that paypal / client area details didn't match ? Should I ask for proof of ID ? If so, all this will actually really help and PayPal will indeed close the case in my favor ? All I know is that when I initially ordered one dedicated server on my provider he didn't provide the server until I send them my scanned ID and paypal email/name to match the their website registered email/name. More then this when I have used another paypal account to make a payment they didn't accept the payment and I had to call them to explain them what's with the new paypal account payment. The question is all this really help as proofs to win the paypal dispute ?