Knowing well about how buyers use this as a medium to get items without payment and how it directly affect authors, i came about what seems to me as an ultimate solution, and i do not know if this has been implemented yet.
What is the solution?
I do not know if this has been implemented yet, but i suggest that Envato take some extra step like the following to ensure that such buyer who made the reversal doesn’t get to come back, else the dispute has been settled.
- Hashed copy of the payment details (e.g credit card) of the user should be saved in a blacklist.
- The system should constantly check for each purchase made to match with the records of the blacklist, if a match is found, the user’s account should be temporarily disabled, while a detailed email notification about what just happened and why, is sent back to the user. This will ensure that the user doesnt come back under a different account.
- Envato should have made a way available with which the user can settle the initial dispute (either by refunding their account which is credited to the author back) before their initial account is re-enabled as well as all temporarily disabled account from the previous steps.
The information used by envato to detect returning buyers who once had a sale reversal is however not limited to payment details alone, she could use combination of IP addresses as well as names or some sort of information they already have at hand which is unique to the user.
Envato don’t share the exact steps they take (for obvious reasons) but anyone who reverses a sale has their account immediately locked down until it is resolved.
Not sure what else they do or if IP detection etc would even be legal but it’s important to remember that:
-
envato can’t control this when it happens
-
envato also lose out so if there is something that can be done then I am sure it will be
1 Like
I don’t quite understand the full details of all your points, but if my assumptions are correct, I think they do some of those already. Also, these would reduce and possibly eliminate repeat reversals, but not the original reversals. Keeping a previous members credit card details on file is probably illegal, but even if it wasn’t… most reversals (apart from ones where they’re disputing the quality of the item, delivery of a service etc) will be due to stolen credit cards, which would be cancelled by the bank anyway… so they’re not going to use it again.
Holding a buyers money may not be illegal if it is clearly stated in the terms, Google does that to play store developers, whenever you get 3 strikes, you wont be allowed again forever. If you try to buy a new account, they will take your money and ban you once again.
Basically this will solve majority of reversal because most of them are not genuine but an attempt to trick the system, this affects authors in envato sub market that cannot implement purchase verification on their product, e.g Graphics, Video, Audio e.t.c.
How are you going to hold money if it’s been reversed? You can’t… there’s nothing to hold. Maybe if the buyer is an author they could do that… but how many authors make fraudulent credit card payments here? They’d get their account shut down and ruin their ability to sell stuff here.
I don’t see how any of your suggestions will reduce reversals.
No, you don’t understand! When envato detects the same user coming back under a different username to purchase again using the same payment method, the money/license should be held. Do you understand?
They wouldn’t use the same payment method. If the card is reported as stolen or used without the cardholders knowledge, which would be the cause of most reversals, the card would be cancelled and a new one issued. If that chargeback was legitimate and the cardholder comes to buy something… then they’re likely going to be the actual cardholder. The odds of the same person having two different cards stolen by somebody that then uses that card to buy stuff from Envato, are pretty minimal.
On the other hand, the person coming back is the same credit card thief, but with a different card… how would you be able to detect that? They’re using a different name and a different card.
The exception to the card being cancelled would be if the cardholder put through a dispute for goods not as received etc etc. In that case they’re unlikely to create an additional/fake account to buy more stuff.
Bottom line, I’m sure Envato do have ways to detect the same users coming back who have previously had different accounts and have been doing naughty things with them. But they’re going to be a very, very small majority of all reversals, it would also have no effect on first time reversals and overall… it would make hardly any difference to anything.