Thread: Customer service and chargbacks

I was getting sick of all of the chargebacks. It seems like they happen now more than ever. As a seller I wanted a solution. I decided to invest more money in my customer service department. In the end, at the moment I have a lot less charge backs, but the money that saves is then spent on customer service instead. Is that a win or a lose?

Sorry to hear that your venture broke even. I do respect what you were trying to do though. I say, since you broke even then you did a good thing. Good customer service can lead to more sales and word of mouth. So keep it up I say.

I agree, while the result seems the same, the ethics are right. If I was angry with a company for not listening to my complaint I would not be a return customer. So perhaps, later on, you will see the fruits of your labor.

Chargebacks can flatline your business profits. From the chargeback fee, to the loss of the product can really hurt your business. Here are a few tips to help you out.
Best practices to avoid a Chargeback.
#1. Clearly Communicate your Policies.
#2. Make contact easy for your customers. Toll free number. Email account that is checked often.
#3. Any time a transaction is processed, let the customer know.
#4. Keep records of all interaction with your customers. Phone calls, emails, etc.
#5. Work with your customers to resolve issues. Being unavailable or inflexible isn't good.

I agree that you will reap the rewards of your customer care scheme at some point. These days I see more and more online stores with clearly laid out structures to avoid this. It's got to be a positive move.

Originally Posted by Merchant Lifeline

Chargebacks can flatline your business profits. From the chargeback fee, to the loss of the product can really hurt your business. Here are a few tips to help you out.
Best practices to avoid a Chargeback.
#1. Clearly Communicate your Policies.
#2. Make contact easy for your customers. Toll free number. Email account that is checked often.
#3. Any time a transaction is processed, let the customer know.
#4. Keep records of all interaction with your customers. Phone calls, emails, etc.
#5. Work with your customers to resolve issues. Being unavailable or inflexible isn't good.

I might add a couple of points if doing business by mail / Internet:

#6. Sell only reputable, quality goods / services that you have clearly and accurately described.
#7. Choose a reliable, reputable and insured shipping partner.

Other than that, I'd say Merchant Lifeline's #5 is gold!