homepage Welcome to WebmasterWorld Guest from 54.205.254.108
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Pubcon Platinum Sponsor 2014
Visit PubCon.com
Home / Forums Index / WebmasterWorld / Ecommerce
Forum Library, Charter, Moderators: buckworks

Ecommerce Forum

    
Help with Chargebacks
Sudden surge in Chargebacks
Bruiseviolet




msg:4469809
 7:51 pm on Jun 26, 2012 (gmt 0)

Recently we have gotten a sudden surge in Chargebacks.

Here is an example of one we had this week:

Customer placed a very large order over the phone. Paid extra to have it shipped overnight. Our products are designed to work over a 90 day period- with patches you change every 3 days. Each package contained 10 patches.

Customer called 3 days after receiving product- claiming they didn't work. We were trying to contact him- but he wasn't answering the phone or e-mails. We wanted to go-over that they are 90 day therapies, and make sure he was using them right etc.... Our return policy clearly states- NO RETURNS OR REFUNDS on opened and used product. We were going to allow him to return or exchange any UNUSED product- less the shipping charges.

Customer just sent back all of the products- with over 90% of the product missing/used. Of course- Visa refunded him his money. Now we are stuck out money of a huge order- and big shipping charges- with returned product that is COMPELTELY unusable and we could not use or resell in any way shape or form.

What are our options and how can we minimize chargebacks? It's one thing- where chargebacks were designed to protect consumers- but what about small businesses who are getting frauded by customers who just automatically do a chargeback? They never even gave us a chance to "make things right" with the customer.

 

dpd1




msg:4469897
 12:51 am on Jun 27, 2012 (gmt 0)

This is a popular problem and many people will have ideas you can try. But there's also a number of older posts...

[webmasterworld.com...]

[webmasterworld.com...]

Do a search on chargeback and you'll find others.

jwolthuis




msg:4470155
 3:57 pm on Jun 27, 2012 (gmt 0)

You offered overnight shipping to a new customer, with the hopes of scoring a large order. That should have set your fraud-flag waiving.

Don't offer overnight shipping to a new customer with no order history. The shipping charge they pay can become your liability, as you discovered. It's better to lose the sale, than get stuck with big shipping charges.

jrockfl




msg:4470732
 1:01 am on Jun 29, 2012 (gmt 0)

I agree with jwolthuis. Large order with overnight shipping screams fraud. Unfortunately, it is the cost of doing business.

Recently, I had a chargeback and the shipping address matched the billing address. I faxed over the invoice, shipping label and proof it was delivered to the billing address to my merchant.

I received the money back and thought it was over. A couple week orders the chargeback went through again!
The customer said it was still fraud and I lost it.

gtellier




msg:4475487
 8:04 pm on Jul 13, 2012 (gmt 0)

There was a time when I was happy when i got a BID order, till I realized MOST of my BIG orders seen to be fraud.

Now i will only take a small order with new clients till i see how things go with them.

jecasc




msg:4475502
 8:40 pm on Jul 13, 2012 (gmt 0)

In cases like this I collect the money myself by
1. sending letters demanding payment
2. handing the issue over to a collection agency
3. go to small claims court

If I suspect fraud I report the case to the proper authorities.

However it seems it depends on the country where you live. From what I have heard in this forum so far there seems to be a weird custom in the US for example to accept the chargeback from the credit card company as final verdict and not to do anything about it. Not even invest a few cents in stamps and send a collection letter.

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / Ecommerce
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved