As easy as it is to sell e-books, I’m finding that after this Paypal fiasco, I’m going to be adding some extra layers of protection to my own business.

I just got off the phone with Paypal. I inquired as to why my account was placed on restricted access. The rep told me that it’s nothing serious. A lot of information was never verified on my account anyway.

But keep in mind, if someone sends an e-mail to Paypal regarding a download link they didn’t receive, even that can be a cause for them to restrict your account.

Apparently this is a problem Paypal has with people who sell products that are downloadable. (As told to me by the rep.)

Makes sense though. When I sold print products I beat out 95% of the chargebacks I got because:

1. I could provide UPS tracking information,
2. 9 times out of 10 the customer making the chargeback would have the product sent to their real name/real home address,
3. In cases where they claimed fraud, I would find their home telephone number, and call them. This was just to make sure they actually lived there.

Once I found out they were living at the same address where the product was shipped (since I called them), I would give this information to my payment processor. This way the payment processor had the ammo to defend my case properly. And it almost always worked. Except – of course – in legitimate cases where the persons credit card was indeed stolen.

You can’t defend yourself with an e-book. The customer is always right in the eyes of Paypal, or almost any payment processor. Until there’s a de facto standard for e-book delivery, forcing customers to do an iris scan of fingerprint recognition, there are always going to be these types of problems.

Let the truth be known, I like Paypal. The best part of using Paypal is having instant access to your funds. I’ve clocked thousands of transactions to my account, and I haven’t had a single problem until yesterday.

And because I travel a great deal, I’ve always tried to make the sales process as stress-free as possible. So e-books were ideal for me. And Paypal’s instant fund access was perfect. But this experience has given me a well-needed splash of cold water to my bank account.

My verdict… Something has to be sent in the mail.

• A printed receipt along with download instructions. (Definitely)
• A bonus report. (Maybe)
• An audio product. (Maybe)

And when you do, make sure you include signature confirmation or return receipt requested. This way, there’s proof that the customer did in fact receive something. If a problem should arise, you have verifiable proof of delivery.

Is this a lot for the average person selling a single $27 product. Probably so.

I sell several products. And my monthly income is in the $XX,XXX range. So my need for protection is a little more intense.

Either way, please learn from my experience. Don’t wait until you’re waist deep in poo before you realize that the situation stinks.

If you’ve read any of my previous e-books, then you know that I’m not ashamed to admit my failures or mistakes. Sometimes the deepest enlightenment comes from watching another person bust their ass.

Well today I’m face down on the ground.

I was out this afternoon – taking an alone time break since my daughter went back to school today after being at home (in my face) with me for 3 WEEKS. I swiped my well-worn Paypal debit card at Whole Foods, and the card was declined. Hmmm, let’s swipe it again. I KNOW I’ve got plenty of cash in that account. Declined again.

Now I’m worried. Strike that… I was more like SUPER DUPER PARANOID, times 1 gazillion heart attacks.

After finally paying for my purchase I rushed outside to call Paypal. The rep gives me my balance. Okay it’s ALL there. (I wipe the sweat from my brow.)

Then he transfers me to the debit card department. That gentleman commences to tell me that my Paypal account has been restricted. I cannot access my money. I cannot receive money.

Okay now I’m back to SUPER DUPER PARANOID, times 1 gazillion heart attacks mode.

He tells me that a single transaction (one for Desperate Buyers Only) is the culprit. At this point I’m assuming it’s a chargeback, so I didn’t bother to ask what happened. Then he gives me a laundry list of things I’ll need to login and supply to Paypal.

When I got back home I immediately logged on to Paypal. I see a case number, but there’s no link to the offending transaction. Then I begin going through the list of things they need:

• Social Security confirmation.
• They need to verify my telephone number through an automated service.
• They’re going to charge $1.95 to a credit card they have on file for me. When they do that I’ll have to get the Extended Usage Number (or something like that) from the credit card statement, and type that into my account.
• They need a copy of my identification, bank account statement connected to the Paypal account, and a copy of the credit card statement that’s connected to the Paypal account.
• They need the shipping details for the last 6 transactions.

So I get to work supplying all these details.

Social security, check.

They charged my credit card, and my statement immediately showed the number they were looking for, check.

Shipping details for 6 e-books is basically the download links which I supplied, check.

When I went to the window for telephone number verification, I accidentally hit continue instead of cancel. So the service called my house – in Florida. Of course nobody answered because I’m in New York. (The number I’ve had on my account is my cell phone number, which customers have called me on in the past. But Paypal needed a landline number, which was at my Florida house.) So when I went back to this window it said that they now have to send out a letter that contains a code. I must wait 7-9 days to receive said letter. Crap!

Copy of my ID, bank account statement, credit card statement, check (I hope). I faxed everything to them. And when you print out the cover sheet (which they supply), there’s a page saying that you’ll receive a confirmation e-mail within 15 minutes of faxing your documents.

I wait for the confirmation. No confirmation.

I go back into this page. I notice that I can also upload the documents to my account. I scan everything. Then I upload 1 document, check. The second document, check. The third document… Internal server error. (A problem on Paypal’s server.)

Okay let’s try that again. Document #1, fine. Document #2, fine. Document #3, Internal server error.

So I deleted everything and changed the order of the documents. First I uploaded the troublesome document – no problem this time. Then Document #2, fine. Document #3, INTERNAL SERVER ERROR.

Deep breath in… and let it out calmly.

I called Paypal. I told them that I’d sent all the documents, but that I hadn’t received a confirmation e-mail. The rep told me to give them 24-48 hours.

Oh and don’t worry about the missed telephone call – she said. As long as my Paypal address matched my credit card or bank statement address, I’d be okay. (Which they do.)

So now I’m Paypal-less. Caught out in the big, nasty freeze that I’d only read about on other peoples websites.

I always thought “It’ll NEVER happen to me.” And it happened.

BTW, in case you’re wondering how much I had in my Paypal account, I’ll just give you some roundabout numbers. I always keep a minimum of $1,000 in the account for refunds. I’ve never received $1,000 in refunds within a month. But I like to err on the side of safety.
I keep my affiliate payments in the Paypal account. And since I had a good December saleswise, I decided to keep another $2,000 in there as mad money for a few projects I’d been working on.

So the account had plenty of cushion. And when I look at the account balance, it’s all there. (Come to think of it, there’s no money missing for a chargeback. Hmmmm.)

Right now I’ve done all that I was supposed to do. I honestly don’t think this is going to be a long term situation. But I can’t rely on that guess.

I’ll be switching my payment options on my e-books today. It’s a pain in the butt.

So learn from my situation. ALWAYS have a payment backup plan. ALWAYS.

I’ll keep you up-to-date.

I happened across an advertisement that said “Goal Achievement is Easy.”

What a crock of shit! Goal achievement isn’t easy. Nor is it supposed to be easy. If you’re pursuing a goal it’s because the thing you want didn’t happen during the normal course of your life. So it’s going to be a challenge.

Don’t crave ease. Crave the ability and stamina to get the job done no matter what the circumstances.

And if you find that you’re floundering at the goal achievement process no matter what you do, then have a peek at my new Business Goal Bootcamp e-book.

Why?

Because I’m a writer, just like you. I understand the challenges that come with our craft. And I’ve faced them both successfully and unsuccessfully.

Business Goal Bootcamp displays some vital (often missed) steps that flat out motivate you to get the job done. It’s a fast read, and guaranteed food for thought.

Viva la New Year’s resolution revolution!