Fight Against Unwarranted Chargebacks
18. Nov, 2009 
2 Comments
If you have worked in retail for some time or have just gotten your feet wet, you know that chargebacks can be the bane of your existence. The reason why they are so bad is because customers can chargeback on pretty much anything they want and a lot of times, the credit card companies will side with the customer. This can be a major problem because if you provide what you are supposed to then you are out of money. Also, there are many customers that just don’t feel like paying for the products and services that they asked for. We are going to give you some tips on reducing your risk of losing chargebacks.
While chargebacks are inevitable when working in retail, try your hardest to make sure that each customer is taken care of. You need to make sure that you and your company document every conversation with customers whether it be email, phone, or the old fashion letter. Having these documents can help you in the long run with the credit card company. Your merchant processing company wants to help you fight the chargeback if it is unwarranted, so give them everything that they want or need to effectively process the chargeback. This can include tracking information, product documentation, service documentation, your company policies, and more.
Most chargebacks in retail are due to non-deliverables whether it be you just not providing the service that you said you would or the shipping company not delivering. Make sure that you tell your customer exactly what they will be getting and provide a checklist for them to see. This can help. Make sure you use a shipping company that provides accurate tracking like UPS or Fedex. There are times when UPS or Fedex drivers deliver the package to the wrong location and that will warrant the shipping company to pay you back for the item and the shipping cost, so you might still get a chargeback, but you will get you money back in the end.
Be prepared for chargebacks, because the money for that order of product or service will taken out of your bank account until the chargeback is completely processed. This can take a few days all the way to 60 days in the worst case. One of the best ways to reduce chargebacks is to verify all orders that come through with a fine tooth comb. We know that it takes time to do this, but you will reduce the amount of chargebacks greatly if you can find orders that will not pay upfront. Also, many companies now that ship products are requiring a signature on all orders because then they have a better way of showing that their customer did indeed get the package. This is a great method, though it can upset some customers, it will make others happy knowing that you are trying to reduce fraud and chargebacks allowing you to pass the savings on to the customer. Remember to fight all unwarranted chargebacks hard because they can slowly destroy your company and your reputation with credit card processors.
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