How to Avoid Getting Double Charged Using PayPal

How to Avoid Getting Double Charged Using PayPal

This is a frequent issue that appear to happen frequently.

Once an order is created, or a recurring service has been charged, a statement is delivered to the customer with payment details. An invoice might be an easy email instructing the customer to pay money into the hosts PayPal accounts through the PayPal port, or even a payment button in a statement which connects directly into the PayPal page.

When the customer makes the payment, then the server automatically (or manually, based on whether or not a billing process is used) enroll the payment and the service is extended into the new expected date.

So this sounds obvious, what will go wrong for this? Well, there are 3 parties involved.

1: The server, that sends the bill, waits for and enroll payment, hence extending the support.

2: The customer, that receives the bill and also makes the payment.

3: PayPal, that transfers the paid sum in the plaintiff (the customer) to the recipient (the server), and then, when the server has this setup, send payment notification to the server.

Notice that the server can’t bill or charge the customer. The PayPal system does not operate this way. It’s always the customer who initiates payment.

From the above scenerio, it’s fairly possible that the server just does not assess its free paypal money equilibrium, so never knowing that the payment has been received. However, this doesn’t lead to double fee. Bear in mind the host can’t in any way draw money out of your customers PayPal account.

The significant problem is your PayPal subscription attribute. The subscription attribute was made for individuals that makes routine PayPal obligations to others or businesses. Perfectly suited to recurring numbers, for example web hosting. The PayPal subscription can be initiated by the customer, not the server, and it could only be canceled by the customer. With a few charging systems, the server can’t even see that a PayPal subscription is set up, nor view that the date on which the next payment will be obtained.

When a subscription is made, PayPal will move the sum each month on the date which the first payment has been made. Some hosts offer two PayPal switches on the bill or email, one for your standard PayPal payment, and one for your PayPal subscription choice.

From the PayPal subscription situation, it’s PayPal who moves the capital in line with the payers wishes. The server is just getting the funds.

So today we’ve got two parties accountable for moving payments.

Together with PayPal subscriptions, the bill becomes obsolete. The amount is always the exact same each time, and PayPal transfers it into the server without any interaction from the customer. But again, the server might not know that the customer uses a PayPal subscription to cover the bill. Some hosts exude websites pretty quickly on non refundable, and informs the customer a couple of days before the expected date that it’s time to cover the invoice.

A couple of days after, PayPal gets the move according the the subscription, and so the host is compensated double.

This has become the situation in 4 out of 5 occasions when somebody has approached me with this dilemma. It is not the server that charges the customer double, its the customer who pays the server double.

There’s yet another feature that complicates matters even more. Then think about what happens if the first payment has been made late.


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