Thread: Blacklisting those who instigate chargebacks

What do you think about the practice of blacklisting customers who make chargebacks against a retailer? According to this article it's intended to punish 'friendly fraudsters', (we already know that professional scammers won't give a hoot about such things.)

I had previously come across this article and had been wondering what the issue of blacklisting customers was all about. Looking at it from a worst case scenario, there is the aspect of customers that regularly instigate chargebacks looking like 'fraudsters'.

There certainly are more 'friendly fraudsters' who will take an opportunity rather than professionals who play the system. If this blocks 95% of chargebacks to a website then I would be all for it

Not long before, I actually came across a site which does exactly this. A very useful site if you are in online business

I agree it's a good idea but as someone in the article says, the customer who makes a legitimate chargeback could be blacklisted. That seems a bit unfair. I had a look at the actual company's site and they have a form you can fill out to check if you are on the list, but no clear information about how you can remove yourself. They also advise you use their 'mediation service' instead of chargebacks. I wonder how much that costs? I also wonder how much they charge merchants to access it?

BadCustomer.com | www.badcustomer.com is an option but Chargeback File | Global Chargeback Registry has been out much longer and has much more data, plus it's cheaper and easier to use.

Originally Posted by Stewie

I agree it's a good idea but as someone in the article says, the customer who makes a legitimate chargeback could be blacklisted. That seems a bit unfair. I had a look at the actual company's site and they have a form you can fill out to check if you are on the list, but no clear information about how you can remove yourself. They also advise you use their 'mediation service' instead of chargebacks. I wonder how much that costs? I also wonder how much they charge merchants to access it?

I assume you would only be put on this list if you made multiple chargebacks though? They are certainly trying to make a profit through this method and maybe it is not in the best way possible.