Reversal of Author Fee- 5 Continuous transactions and all Sales reversed

Hello,

I can see that in last few days almost every sales is showing 'Reversal of Author Fee". Almost 5 sales are reversed. Can you please look into this.

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Unfortunately it’s beyond envato’s control - the item will be removed from the buyers account etc but a reversal is between the buyer and their payment provider

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But I think they will have enough time to Download the Code ?, as after purchase they received the Item.

I think they are doing deliberately this to get the product access.

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Unfortunately, it is a downside to selling stock items.

I get how frustrating it is but there is nothing that envato can do to prevent it (same with all other digital download sites).

You can contact envato but they will say the same thing Envato Authors Help and Support

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what has happened here is that an unauthorized purchase was reported or a user filed a chargeback and has resulted in a reversal of the funds (Envato has not received the money for the item). the buyer’s access to download the item has since been revoked for the unauthorized transaction and their account has been disabled.

Sales-Reversal:

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Alright but you can see the trend , that everyday we are facing this , even they disable their accounts, they can use other accounts or who are into this false practice are following the same. Disable account is not a solution I believe as they still getting access of the product.

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Yes, I read more about them and yes they mentioned the same thing. Loss of items and purchase for buyers in this case.

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We also encountered this practice, but unfortunately, it’s not very clear why, Envato does nothing to protect digital goods.

I don’t understand why Envato will not give up this practice at all. If the matter is in the payment system, then why not change it. They lead perfectly and understand that this is a digital product, and whether it was uploaded or downloaded at least once, everything, consider it already free and can be found on the Internet.

Apparently, Envato doesn’t give a damn about their users, which bring them huge revenue

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Envato does do something. They have anti-fraud measures in place that try to detect suspicious payments and block them. But there are two problems with this:

  1. It’s impossible to catch 100% of cases.
  2. The more aggressive they make it, the more false positives it will produce.

You don’t want false positives, because that means lost sales due to real customers getting incorrectly blocked. We’ve seen hundreds of posts on the forums from customers saying they were blocked when trying to pay, and that support basically told them, “sorry, we won’t be allowing you to buy here.”

It’s a balance that will be impossible to perfect. The way Envato has it now certainly stops a sizeable amount of fraud attempts. Don’t forget, they’re losing money too, so if there was something more reliable they could do, they would do it.

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Here you are a storyteller moderator.
I understand that your task is to protect Envato. But let’s go over your answer briefly:

Envato does do something

And what did Envato do for the half year message to prevent such situations? Introduced discount management?
Something I have never seen a digital product purchased (for example, Netflix or iTunes allow their customers to refund money for their digital content)

Here you wrote a little incorrectly:

It’s a balance that will be impossible to perfect.

you had to write. “This is a balance that Envato DOESN’T NEED to improve”. They built a system that suits them and they are satisfied with everything. In this world, nothing is possible. And to prevent such situations is a matter of desire, no more

The way Envato has it now certainly stops a sizeable amount of fraud attempts.

Significant, but not all, one hundred percent. Given that Envato sells digital products to OTHER users, this is not permissible.

Don’t forget, they’re losing money too, so if there was something more reliable they could do, they would do it.

We do not forget that in such situations they also lose money. The only difference is that the authors’ product has already been downloaded, that is, received for FREE, that is, the authors lose money by the way, also their digital product

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What do you suggest?

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Since it does not depend on the authors or Envato, but on a payment system that Envato cannot influence, there are two suggestions:

  1. Change payment gateway
  2. To enable the author to independently withdraw funds at any time

The first option will be technologically difficult for Envato, the second option, it seems to me, will suit everyone: if there was a purchase, the author can immediately withdraw the funds, or somehow reserve them. In this situation, even if the account was fraudulent or the buyer after a week decided to cancel the purchase so that he could not do this. I think this option is more honest for both authors and buyers: the product will always be available from the buyer, since it has already been purchased

Everyone will be in plus: Envato will receive his commission, the buyer of his goods, the authors will reward

And the sheep will be safe and the wolves full

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Don’t most gateways have minimum amounts/fees per transaction etc. (hence why envato have the minimum withdrawal amounts) - it seems like this would either end up creating huge amounts of admin, extra costs to envato and subsequently fees to authors, or even potentially be impossible with certain items sold?

I know people have shared another marketplace who work to (give themselves an option to - not guaranteeing to) get involved in these situations but their top selling item has less than 300 sales, so it’s hardly comparable to envato.

Do you know of other (realistically comparable) websites who handle this effectively (as inspiration)?

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So you need to give the author perhaps not to withdraw, but to reserve funds, deposit.

As it happens from the 1st to the 15th day of each month. On his account, the author sees a zero balance, although his funds are reserved. And let them also be displayed automatically when a certain amount is reached in the end of the month

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One of the main reasons why you can’t withdraw your funds immediately is to avoid this very issue… payment made and withdrawn one day, and sale reversed the following day… you’ve got your money from a sale that essentially didn’t happen, and Envato are left with less money than they started with. I can’t see them ever implementing that, and you’ll just have a bunch of authors with negative balances that they need to pay off.

As for alternative payment methods… pretty sure cash or cryptocurrencies would be the only option, and if those were the only options they offered then sales would dry up considerably overnight. I’d rather have 100 sales with 10 of them being reversed than 5 sales with none of them being reversed.

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extra costs to envato and subsequently fees to authors, or even potentially be impossible with certain items sold

Are you serious? Envato grabs from each purchase more than one third of the value of the goods at least. So why not use these funds to protect goods, from which Envato has a good commission?

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Their commission is not especially greater than most other marketplaces (it’s actually significantly better once an author becomes more established), and because their commission is already being used on other important things.

No business in any industry would openly incur significantly increased costs and then not need to pass it on somehow.

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That’s why when selling digital goods, a cancellation of a purchase MUST NOT

Here’s an example for you: you come to the store, buy a packet of cookies for $ 1.

After 5 minutes, you come back and say that I do not want these cookies. You give the store cookies, he gives you your 1 dollar. This is a fair deal. No one earned anything, but no one lost anything.

Your situation on Envato is completely different. I buy a script for $ 1, download it, then after 5 minutes I cancel the purchase. What is the result? The authors did not earn anything, but “lost” the goods. The buyer has the goods and $1, that is, he cost him free

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Authors who repulsed ANY commission should understand and be sure that their product is safe. Then there will be no questions about the size of the commission. And it turns out that the commission is levied, but there’s no sense

You noticed correctly

No business in any industry would openly incur significantly increased costs and then not need to pass it on somehow.

But you forgot one main thing: money should work. It is foolish to charge a commission and do nothing to ensure that the goods from which this commission is available are canceled

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Even if Envato had a dedicated team to handle this, aside from the implications, there is still no way they could 100% prevent it, for numerous reasons.

The thing is, they do what they within reality can (probably more that none of us have access or visibility of).

For example, if someone challenges a payment then their account is locked and items removed (I know this doesn’t entirely solve if someone has already downloaded it but again it’s the best of a difficult situation).

They are not taking commission out of greed - there is astronomical costs and investment involved in managing the biggest marketplace around, let alone the other internal and behind the scenes things which again we have no visibility of.

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