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[weasello]

So I'm getting ready to launch my game and there's a decision I have to make, about  .

I'm using PayPal's IPN (Instant Payment Notification API) and it works great. The one thing I'm not sure of is how to handle eChecks.

When a player pays from their Paypal account, and they don't have enough funds to cover the transaction.. They are given the option to draw direct from a bank account (if one has been set up in the profile). These payments are treated like checks and can take up to 15 days to clear.

In the meantime, the IPN sends a "Pending" message to my server. Once cleared, it sends the "Complete" message to my server.

I'm wondering if I should deny user access to the game until the check clears... Though mighty inconvenient for an "instant" online purchase, it would cover my butt if the check doesn't clear.

Thoughts?

[NateDog]

For us, eChecks that didn't clear or had chargeback issues was as high as 5% vs ~1% for non eChecks through paypal.

If your game doesn't have a way for players to sell their purchased game credits to other players or buy memberships for other players, then I would say accept eChecks and also credit them immediately.  When an eCheck bounces, then you ban the account until they make up that payment.  You have very little exposure with this.

If on the other hand you allow players to purchase game credits and then resell them to other players, then I would advise against eChecks completely.

[weasello]

For us, eChecks that didn't clear or had chargeback issues was as high as 5% vs ~1% for non eChecks through paypal.

If your game doesn't have a way for players to sell their purchased game credits to other players or buy memberships for other players, then I would say accept eChecks and also credit them immediately.  When an eCheck bounces, then you ban the account until they make up that payment.  You have very little exposure with this.

If on the other hand you allow players to purchase game credits and then resell them to other players, then I would advise against eChecks completely.

Thanks for the info. I don't have any transferring abilities planned at this time and I can concur from some previous games that chargebacks/failure rates on EChecks is very high.

I guess the "snag" for me is - Someone can pretty much play the entire game and get all their fun out of it in 15 days. What's stopping people from charging back? Is there any defense for it?

[Radix]

I think it's normal to deny access until the payment clears. I'd do it that way.

It's annoying when it happens, but in a "shit I should've checked how much was in there" way rather than a "payee must be a dick" way.

[NateDog]

What's stopping people from charging back? Is there any defense for it?

Well, I think I scambled the use of the words. 

eChecks not clearing is what we're talking about and there's no defense to it. 

"Chargeback" in paypal terms is when the money clears, but later the user makes a claim (and for virutal goods, their only valid claim is card was used without authorization), and this is ~1% that goes through.

There is also a reversal which is when paypal thinks there are funds (usually someone with paypal tied to their bank account but then when paypal tries to pull the money, there is insufficient funds, stc.) and this for us is very, very rare.

I know it's natural to want to protect from those that will steal with knowingly bad eCheck fraud.  But, even if you experience an insanely high 10% chargebacks on the eChecks... that means 90% went through fine.  I would just consider it the cost of doing business and wouldn't want to stop the 90% from experiencing the immediate gratification.

[Box of Boxes]

People get really mad with someone who's waiting for paypal echecks to clear.

My ebay account got dinged with a lot of negative feedback when they didn't get stuff sent out immediately. Might end up leading to a lot of nasty word of mouth if you force them to wait