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kdubdent Envato team says

Hi folks,

We have a change we’d like to make sure everyone is aware of. It’s regarding how we handle reversals on sales coming from the payment provider (e.g. PayPal). When a reversal is issued by PayPal, the money from that transaction never makes it to Envato. In the past when a purchase was reversed by the buyer, we only reversed the purchase on the marketplaces for the larger amounts. Most of the time we paid the author a sale anyway (even though no money made it to Envato). This was because our tool was a completely manual (and super inefficient) one. We’ve now been automating parts of our system around reversals, so we can accurately capture more transactions.

To be clear, the number of reversals that are made is far less than 1%, it’s a very small total number of transactions. However now that we are capturing more reversals in our system, more authors are going to see these pop up very occasionally on their statement.

If you have made a sale and it is then reversed, a line will appear on your statement to notify you. The transaction type is “Sale reversal”.

 photo AuthorsStatement_zps5cc14c28.png

There are a variety of different reasons a reversal might happen, but two broad groups are the transaction was disputed on the grounds that it was some sort of fraud (i.e. I didn’t buy this, I’ve never heard of this company!), or that the buyer was disputing that they got what they paid for in some way. On the first type, we have an active anti-fraud team and systems in place. On the second, we work on the disputes that are raised, and try to resolve each positively. So while reversals are part of running any sort of business online, we are active and diligent in both monitoring and combating reversals to ensure they are minimised.

If there are any general questions about statements, reversals or similar things please do contact the Support Team. We are alway happy to help!

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quickandeasy says

Thanks for the update.

When Paypal is so vastly used for digital content, they need to offer us digital sellers some seller protection!

Kudos to Envato for paying Authors anyway for all this time. I always wondered why I never heard many complaints about chargebacks etc.

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ikaruna says

OK, I understand the buyer gets a refund for some reason, I hope that the “PURCHASED” badge is removed from that buyer’s comment as well as his possible rating, right?

jayc

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BenSheppard says

Whats to stop people buying getting a refund and keeping the file?

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ikaruna says

Whats to stop people buying getting a refund and keeping the file?
Probably the PayPal dispute.
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Diabolique says

There should be provided a License Key of purchase so authors can remove such person from a support forum.

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quickandeasy says

Whats to stop people buying getting a refund and keeping the file?

Nothing. It’s a pain in the… when you sell through Paypal, as Paypal don’t cover non-tangible transactions.

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EladChai says

Yey, just got my first reversal. Thanks Envato. :|

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quadroIdeas says

OK, I understand the buyer gets a refund for some reason, I hope that the “PURCHASED” badge is removed from that buyer’s comment as well as his possible rating, right? jayc

+1

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Enabled Moderator says

Purchase tag and ratings MUST be removed if a buyer does this! We don’t get the money, and we get a 1 star rating? Thats just bad! The rating should also be removed in case of a reversal!

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