You should avoid shipping to an unconfirmed address in Paypal as it offers you zero seller’s protection.The bad part about Paypal is that there is no time cap for customer chargeback's.

The good news if you are diligent with shipping promptly to a confirmed address and getting signatures for delivery over $100 you should be covered by the Paypal Seller’s Protection program.

That means that even if the person decides to say it was fraudulent, or not received you will not lose on the transaction if you have the information. If you can provide proof of delivery, and that you shipped to the confirmed address you will qualify.

Anyway, for extra info on the subject you wight wanna check this site.

Selling Virtual goods will always have tons of charges back I actually myself use to sell virtual goods. No matter what the credit card protects the user 100% and the user can say they never got it or whatever and the credit card will automatically do a chargeback.

Hi Polatrite,

There is no way to completely get rid of 100% chargebacks when accepting card-not-present credit cards or payment by paypal. There is another payment option that will give you 100% protection with no risk of chargebacks. Have a look at www.utruepay.com [UTruePay] You receive the cash as soon as the funds are cleared and don't have any risk of charge back.

Depending on the goody you sell you can add "phone home" functionality to get proof the goods actually WHERE received.

This obviously works well for stuff like software or access to online services but not for PDFs and the like.

Raise your prices by 5%, and offer a 10% discount on the next purchase if they phone/email back to confirm the purchase.

That lets you bag the sale, avoid chargebacks, and even gain customers for future sales.

For online products, you can ask for a verified credit off the get-go (but don't charge anything), and then offer a deferred payment schedule, where they can make the first, say, 3 months payment after the 3rd month. The verified credit card says that they were willing to give up the card and agree to the deferred payment schedule, your service logs will tell you if they have been using your service. If after 3 months they don't pay, they were never going to anyways, so cancel their service immediately. After 3 months they may pay, at which point you can just offer them a couple of free months after they have used the service for 90 days (or whatever the chargeback period is).