I just say that I have to contact MicroSoft to verify when the code was used, Most then tend to magically email back saying the code now works!
Failing that I then give a refund and never a new code, I don't want them trying it on again.

TBH I check alot of codes using the xbox redemption part (rather than website) this gives you an option to cancel the redemption so you know the codes works 100% (takes a lot of time up though)

I basically have three options I can hit them with if this happens:

1
If someone tries to tell you that the code you sent them doesn't work, you just tell them "OK sir no problem I will just ring Microsoft to find out when and where that code registered" At which point said scammer then realizes that if I does ring microsoft and they tell me the code was registered 10 minutes after I sent the email he's been found out (I have no idea weather MS will tell you this or not i've never got that far)

2
My site T&C's state that they they will be snail mailed a scan of the original code and MS contact details and they are responsible for contacting the appropriate supplier.

3
My site FAQ's state No refunds are given for these.

Originally Posted by mushroom79

I basically have three options I can hit them with if this happens:

1
If someone tries to tell you that the code you sent them doesn't work, you just tell them "OK sir no problem I will just ring Microsoft to find out when and where that code registered" At which point said scammer then realizes that if I does ring microsoft and they tell me the code was registered 10 minutes after I sent the email he's been found out (I have no idea weather MS will tell you this or not i've never got that far)

2
My site T&C's state that they they will be snail mailed a scan of the original code and MS contact details and they are responsible for contacting the appropriate supplier.

3
My site FAQ's state No refunds are given for these.

How does the buyer pay for the item? If via paypal then none of that above matters.

Since PayPal has to comply with credit card laws, which i "think" is 60 days after a transaction the person can go down the bank and say that was not authorised and the money will be chargebacked. However i do believe most banks charge for this.

If your using paypal your screwed unless u send via royal mail doesnt matter what T&Cs you have because basically its useless.

Originally Posted by rogeruk

How does the buyer pay for the item? If via paypal then none of that above matters.

Since PayPal has to comply with credit card laws, which i "think" is 60 days after a transaction the person can go down the bank and say that was not authorised and the money will be chargebacked. However i do believe most banks charge for this.

If your using paypal your screwed unless u send via royal mail doesnt matter what T&Cs you have because basically its useless.

Whats wrong with using paypal?

Thank you for contacting PayPal. We regret the delay in responding to
your service request.

I apologize for any inconvenience. You received funds that were reported
to be potentially fraudulent by the funding source, which prompted an
investigation into the legitimacy of the funds.

When PayPal is notified that fraudulent or potentially fraudulent funds
have been used in a transaction, we are required to return those funds
to the issuing financial institution or their customer. We notified you
as soon as we were made aware of the situation. Until we are notified,
we would have no knowledge that someone's financial information is being
misused.

Unfortunately PayPal has no control of these outside claims by funding
source. PayPal is an online payment service, not an escrow company or
bank service. In order to best serve our customers we have developed
our Terms of service and Seller Protection plans to extend the most
coverage and safety in dealing with online transactions. However for
these devices to work we must rely on our customers to follow certain
guidelines.

Additionally when these reports are received, PayPal reviews the details
of the transaction in question to determine if the conditions of the
PayPal Seller Protection Policy Guidelines have been followed.

This transaction doesn't qualify for the PayPal Seller Protection Policy
as we didn't receive proof-of-delivery that can be tracked online. For
this reason, we removed the temporary hold on the funds and reversed
them back to the buyer. If you wish to pursue credit for this
transaction, you can contact the buyer directly.

Please review the delivery confirmation products available to you from
the U.S. Postal Service, UPS, FedEx, DHL, and other delivery service
providers. You may wish to consider making the cost of online delivery
tracking mandatory for your customers when the transaction exceeds a
certain amount.

For the Terms and Conditions of Seller Protection, click the "Legal
Agreement" link at the bottom of any PayPal webpage"

Quote directly from PayPal themselves.

Could be a slight problem...

It's the same for any product you purchase with paypal! Chargebacks are the bane of every seller no matter what your selling. You are talking about a very small percentage of items sold. I've been selling for ages with Paypal on and off eBay and have had very few problems.

Yea its the same for every other digital download item. But i wouldnt really suggest it for a new starter.

So what type of payments could i accept that i wont get scammed?

Originally Posted by jedi777

So what type of payments could i accept that i wont get scammed?

Cash! apart from that there will always be a small risk