HRoth - 7:40 pm on Jun 10, 2005 (gmt 0)

Like another poster, I have had more problems proportionally with other businesses than with regular retail customers, but these were net-30 customers.

Someone else mentioned not allowing automatic capture. I think that is a very good idea and that this is where you prevent the most chargebacks. If you can look over the charge, you can do things like check their name and address in the White Pages, Google them, ask them for further information like the customer service phone number from the back of the card, and so on.

The only time I have had problems with the determined-to-commit-fraud customers that others describe, they have been people who kite checks, usually for very small amounts. Others who were determined to commit fraud I stopped at the authorization step.

In terms of buyer's remorse, I did once get a guy who wanted $900 worth of a particular widget and while I was arranging the purchase with the wholesalers, he called back and canceled it because he was worried that my widgets would not be of sufficiently good quality (he had never ordered from me before). But that was one time in four years. I have had many other people order over $1000, which is a very large charge for me, and not change their minds. Total number of chargebacks I have had in that time is five.

I do think it depends on what you are selling, which charges you decide to capture, how you treat customers during the process, and how accessible you make yourself to the customer. I think people are more likely to ask for a chargeback if they see you as a faceless company or as someone who isn't listening to them or helping them with their problem. Then it becomes the only way they can strike at you.