I couldn't agree more, mikesay98 is saying the truth.
Also regarding the 3 points above:
"1 - Will not work at all
2 - Will make the purchasing process worse for the buyer, resulting in even more reversals and disputes of payments
3 - Has no demand"
Regarding 3 - I have provided into a private message TONS OF demand for sellers on eBay who're selling digital goods for many specific keywords (!). Those keywords and categories generates (only for 1 segment) $34B/yearly (excluding another 2-3 platforms, with them that could be $100B+ but the problem there is that majority of products are "physical" and cannot be provided digitally as an activation link or code).
Regarding 1 - I have suggested early on the thread some companies like: telesign.com - which is the best class in providing such solutions. Another ones are: Signifyd, Kount, MaxMind, TeleSign, Reducefraud, Riskified, Twilio and so. But the problem that you have stated early in the year (and in other threads in the past 6-7 years have checked as well) that there is NO API integrations (because of the old flash-based interface, etc.). Don't know if currently you have or have such plans.
I have found that since 01.07.2015 (July 1, 2015): https://www.paypal.com/stories/us/paypal-continues-to-improve-our-global-buyer-protection
"we are announcing the expansion of our Global Buyer Protection globally to cover intangible goods. This includes services, and digital goods, like digital music, digital books, digital games, travel tickets and software downloads.
Beginning July 1, 2015, if you pay for a service or digital product using PayPal and it is significantly different from how it was described, or you pay for one of these items and it is not delivered, PayPal will ensure that the money is credited back to your account."
We are increasing the scope of PayPal Purchase Protection to now include coverage for intangible items."
Although we are expanding PayPal Purchase Protection to buyers for intangible items, Seller Protection will not apply to intangible items. We are including a note in this section about this. In addition, we are adding a definition of Proof of Delivery for intangible or virtual items or services which can help a seller win a buyerâ€™s Item Not Received Purchase Protection Claim."
Check out that what these guys provide to the sellers/vendors: blog.getdpd.com/2015/06/11/paypal-policy-update-added-purchase-protection-for-intangible-goods-and-how-it-affects-you/
A FULL SOLUTION that is giving the seller a REAL "Proof of Delivery for Intangible Items" (which sometimes may cover the chargebacks).
The problem with that DPD company is that they have ZERO integration with eBay, lol. When I've asked them back in June/July if they could be able to implement this scheme: http://i.imgur.com/M4pKD60.png and to provide some "customized" keycode message template (like here in EJ), they said:
"1. We do not have a way to set up the scheme as illustrated in your image.
2- We allow for custom fields to collect info not already collected by our system, I'll post a link to our article on that below:
3- Currently we are working on some big projects and have no plans to set up a scheme like you're looking for, I'm sure that there is a simpler way for you to sell your goods using us without the need for phone verification, but if that is a must for you then it will have to remain a manual operation on your part.
If you have any other questions or concerns just let me know."
So I'm again completely blocked out. Everywhere I see only partial solutions, not full solutions, huh. Which is some kind of completely unacceptable in 2015 â€¦ but who's asking me.
Currently this is my Excel spreadsheet with frauds/losses/stolen (digital & claimed keys) items and chargebacked: http://i.imgur.com/zXgDlgm.png
â‚¬1546 - that amount excludes the bank transfer frauds of ~â‚¬1200 from Oct 2014 and ~â‚¬350 another frauds (chargebacks) on another PP. Total from Oct 1 2014 to Oct 8 2015: â‚¬3096 (Â£2273 / $3480). Keep in mind that I live in a poorest country (even not in the capital) in Europe where such huge amounts of money people earn for TWO YEARS generally.
Back in April or so I have chatted with a fraudster (the guy with the three â‚¬130+â‚¬140+â‚¬140 transactions). He said that he have scammed from another seller 140 x keys in a matter of few days just by using multiple (stolen) eB & PP accs with money on them, of course (or with an attached CCs). He said to me that he could got (for free) even more (and then back resale in other marketplaces or so) if that particular seller (with 240k+ feedbacks) haven't got into his eBay account settled a rule "max. 2 qty per buyer in 10 days". But that was a zero problem for him with ToNS of eB/PP accounts, huh. He haven't told me how many he have got from other sellers tho. And likely I've prayed to him to not buy anymore from my listings because I'm a small seller losing tons of money because of him and because of other fellas like him. He said that will stop (specially to me). Yes, you read this: I HAVE PRAYED A FRAUDSTER TO NOT BUY DIGITAL GOODS FROM ME! LOL, but it is true!
But this doesn't mattered - as you've checked the spreadsheet - http://i.imgur.com/zXgDlgm.png - I've lost tons more from other fellas like him buying from him, zero problems for them.
It's all about volume. The more volume you have with more sales, more transactions and huge profits, the better you can take the losses. Big sellers with XXX XXX feedbacks can take huge losses monthly or yearly, but I cannot take such â‚¬3k losses â€¦
PayPal Payments Pro is not available to my PP's account country. That feature (and many more) are usually available ONLY to the major EN-countries: US/CA/UK/AU. Sometimes: DE/AT/CH as well. I'm not from any of them, neither millions of other sellers from other than those countries. I (we) cannot enable/use them because they're NOT available to us. But of course even with them - cannot stop the chargebackers (and fraudsters buying through stolen eB/PP accs) to buy off vendors, surely.
Out of luck â€¦