Jerlene

If there is one word most Internet marketers quiver at the sound of, it is chargebacks. A chargeback is a dispute over a charge -usually an unauthorized or fraudulent charge- between the customer and the company. The merchant must pay back the entire amount along with any credit card fees. This amount is automatically deducted from your merchant account. There are three main problems about chargebacks that concern the merchant: 1. they lose the payment -and also the inventory if it was sent, 2. the fees associated with every chargeback are between $15 to $25, and worse of all 3. chargebacks don’t look good, and you may lose your merchant account. Merchant services are pretty finicky; they do not just hand out accounts to anyone.

The customer could either be dissatisfied with the product, or there could be a duplicate order, or it could be fraud. Whatever the reason may be, it is crucial to your online business to keep chargebacks to a minimum. One way to stop chargebacks is to stop fraudulent orders by checking to make sure the order seems legit. This may mean you may have to call each customer to confirm the order. You do not want to accept an order if it appears fraudulent. Be suspicious, because in the end, receiving too many chargebacks will damage your profit line.

If, on the other hand, your customer is simply dissatisfied with the product, give them a call and send them an email. Ask them what it is they didn’t like about the product. Ask them if there is anything you can do for them to satisfy them. If they still seem reluctant to drop the chargeback, your last resort would be to ask them if they wouldn’t mind dropping the chargeback and you can offer them a full refund. Most people wouldn’t mind this option. You will find that a simple phone call to the upset customer may actually turn things around in your favor.

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dentocafe

Thats a very good info from your side Jerlene.
I wonder how much pain a consumer goes through if he has to go for a chargeback

mazinger

It's actually the merchant that suffers. That is why merchants should have a mechanism to screen out consumers to avoid dealing with charge backs.

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Effective Marketing

Jerlene

Why are the merchants the one to suffer?

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matty

You have given very good information in this regard. The merchants have to be extra careful while dispatching a order to save him from unnecessary hitches

boomerrbu

hi, Im brand new at this forum, I think chargebacks KILLS us all, I just got a call from a company , I think this is what I was looking for, all along.

I being selling on line for the past 9 years . What is incredible is that customers can complain or place a chargeback with no reason what so ever Not as described (my back color , is not the same black I want, Unrecognized charge (even though my son signed for delivery, I don't recognize the transaction, etc, etc). And what is worst, they get their money back and do not return the product.

Now when you submit your back up information to the credit card merchant company and tell them that the customer should at least pay for the shipping charges which is part of my store terms and conditions, the bank says, that they do not recognize accessorial fees. And we should try to collect that money with collection agency or take them to court. There are times that my shipping charges is more than the money I was expect to make for the item I sold.

I am starting to report my bad customer, I hope you all do the same they say its is free!. bad customer should not be allowed to buy.

Thanks for reading.