[untog]

Yep, direct debit is great (I'm originally from the UK). The US doesn't really seem to have an equivalent, though- you can do direct transactions on a checking account by giving those details to a provider, but then you end up having to maintain a balance with that provider (e.g. Dwolla). Pretty awkward.

[rytis]

it's great, unless you're on the other side of the fence. a customer decides that you don't deserve the money for the product you shipped, and requests the money back. without even bothering to clarify what's wrong. and there's absolutely nothing you can do about it.

well, technically there is, but is it worth 5-10£ in losses? no. and you loose. and customer gains. everyone's happy.

PS. I'm ranting, because my wife just sold on her online shop something to a customer, who then went to a bank and said they can't remember making this payment. so bank charged paypal, and paypal removed the funds. we raised a dispute, but got a standard answer of 'wait 75days and see what the bank decides, the decision will be final. bye.'

[untog]

I think that's PayPal specifically. They have a reputation for repeatedly doing exactly this, especially on eBay transactions.

[rytis]

so how would that work in the DD scenario? someone goes to a bank and asks for 6 months of payments back, what happens to me (the seller)?

[untog]

To be honest, I don't know. But the same applies to credit cards- I can walk into a store, buy something, then phone up my credit card provider and reverse the transaction.

It just happens with Paypal far more often, and their investigation process is much less transparent.