Selling your chargebacks.

Have you done this

[Essex_boy]

Surfing teh web I came across a firm that buys your chargesbacks from you. Having never heard of this before I wondered how many here have done this, and what level of success they have had.

I.e do they buy all at what price, or are they picky?

[Corey Bryant]

They give you a percentage - usually about 10% or so. So if the customer owes you $100, then they will buy for about $10. Of course, this is where your terms of service come in on chargeback fees.

And they won't buy chargebacks in which the reason is "I didn't do it".

-Corey

[Essex_boy]

I suspected that it would be low. Thanks

[RailMan]

a chargeback is a debt - lots of debt collectors out there willing to buy debts from you - not much point asking people on here what debt collectors pay for debts - always best to ask the debt collectors directly what they'll pay

[Essex_boy]

Sure, however it was just a passing interest.

[Corey Bryant]

Well hthis is where you can put inot your TOS that they might be liable for three times the amount of the charge. So that $100 payment is now $400. And 10% of that is about $40. Of course, you can add other fees as well - just check with your MAP to see if they might have any limitations on it.

Google selling your chargebacks to find a bit more information

-Corey

[RailMan]

Well hthis is where you can put inot your TOS that they might be liable for three times the amount of the charge

standard is to state something like they will liable for the original amount "plus costs of recovery including all legal and other fees" - this could be much more than 3 times the original cost

[Corey Bryant]

Actually not many people have something in their TOS in regards to this particular item unfortunately. Most companies will not use a collection agency & those that do sometimes do not have as much authority unless you sell the CB. Selling the chargeback, sells the ownership and the responsibility.

-Corey

[RailMan]

the reason businesses don't put "liability for chargebacks" into their terms is there is no need to - it's a non-payment so a basic non-payment clause covers everything including chargebacks

a chargeback is a withdrawal of payment - nothing more, nothing less - should be treated no differently to any other non payment

google "debt collectors" - the rates i've seen are much much better than the 10% offered for sale of chargebacks - only a fool would sell chargebacks for that kind of money when they could employ debt collectors so cheaply

[Corey Bryant]

Just make sure that you have no control over it - some of them actually rely on you to tell them what you want to get back. There are actually at least two different methods - and I think there might be a miscommunication. I am talking about one and you might be refering to another

-Corey