Reprocessing a chargeback

(with the customer permission)

[lgn1]

We get very few chargebacks, and most chargebacks are errors on the customer part (they forgot they ordered from us, etc).

I find that the whole chargeback recovery system is a lot of work, and it takes months to get our money back.

Rather than using the chargeback system, we were thinking of getting signed authorization from the customer for us to reprocess the credit card transaction.

Im curious if this will setoff a red flag at the processor, as I figure they can easily figure that a chargeback was reprocessed, but if we have signed authorization from the customer we should covered however.

Anybody doing this?

[LifeinAsia]

Depending on the credit card company (e.g., AMEX), you are specifically told NOT to make any further charges to that card. And of course, if you do not dispute the chargeback, it will be viewed by the credit card company as a valid chargeback- too many of them and your rates go up (or they dump you).

And what if the customer is just screwing with you and fully well plans to dispute the second charge on his card as well? Then you'll have 2 chargebacks on your record, with associated fees, as well as a red flag for charging the card a second time after the first chargeback- that might be viewed by attempted fraud by the processor.

[lgn1]

Yes, but we already know that the customer owns the card, and it is not fraud (via contacting the merchant bank).

These are all issues where the customer, didn't recognize the charge.

Wouldn't a signed affidavite from the customer, protect me from a second charge?

The problem is we sell widgets and doodad's under two separate websites, all owned by the same company, and the 25 character max on the credit card statement line, can't describe the products we sell fully.

Despite the fact that we put on our invoice, we sell doodad's and widgets and your doodad purchase will be processed under widget corp, a few customers can't read or are careless.

[LifeinAsia]

It should, but after you jump through all the hoops to protect yourself against a second chargeback, you probably could have jumped through the hoops for the first one (especially if the customer contacts his credit card to cancel the dispute).

I would say that if you're dealing with a customer who has problems recognizing that company A owns site B, after you've (I assume) pointed that out several times, the person may still question the second charge because his brain shut down again.

Besides, you still have the first charge counted as an uncontested chargeback, regardless of whether or not the second charge raises any red flags.

We have a similar problem as you- company name is different from, although very similar to, the main site where people make their reservations. Most of the time we just get inquiries about the charge, not full-blown chargebacks. So we don't have a chargeback fee, but still have to go through all the hassle of documenting the charge. (But if we don't respond in time, then chances are it will turn into a full-blown chargeback.)

[Corey Bryant]

If they did not recognize the charge, you should find out why. Then after that, ask them to contact the issuing bank to reverse the chargeback. This way it does not go against your chargeback history.

You can always re-charge the credit card, but then if the customer does another chargeback - you will run into other issues (I know you already said they did not recognize the charge - but I am just saying because I have heard a few different excuses before).

-Corey