Chargebacks?

When you think of chargebacks, what comes to mind? What do you think they are? How do they affect people? Any experience with them? Ultimately, if you wanted to learn more about them, what would be the focus area?

 

If you are new to onilne busines, you would hate them, you cannot avoid them if you have many products and less staff, you cannot verify all orders manually, so when you use any third party credit card processor, you will face chargeback from time to time, most of the people buy and then forget and do not recognize their purchase, then the banks put chargeback on credit card processing company and they put on you.

 

When I think of chargeback a negative thing comes to my mind You can call it a reversal in other words and they effect real bad. Lets say you sell something like a digital product and buyer pays you and after receiving his product, he files a dispute aka chargeback.

I do have really bad experience with chargebacks. Normally with Egold to paypal exchanges. Gave egold, got paypal and then got chargebacks lol.

Paypal's FAQ always help learning more about anything related to paypal.

 

Well, as much as I dislike chargebacks, you should consider them as part and parcel of doing business. I am always upset when someone commit such fraud especially when you have provided your all in all in helping them.

The thing is that there are genuine cases of chargeback because the credit card number got stolen and the owner is the victim, that you cannot help it. The other are people just being dishonest and commit theft this way.

I am not sure why people here do advocate doing chargeback as an option instead of having to work things out through the proper channel. Chargebacks in the end will hurt the merchant and the trouble is that on the net because there is no signature and you do not see the physical card, the customer usually have the right of way. Of course, if you can proof that as a merchant you do the right thing, you may be able to fight a chargeback.

Actually having read the Symantec Internet Security Threat Report http://www.symantec.com/enterprise/theme.jsp?themeid=threatreport , it is scary to note that the US is the number 1 country where internet fraud was initiated and accords for about 1/3 of all frauds committed around the world.

 

Great informative post Eddy. And this report is really informative.

I agree with you that chargeback should be the last priority of a person when something goes wrong. Though still there are lots of stupid people who like frauds.

 

I am from Singapore and we are always rank pretty much on the top of the list for being the least corrupt and for all the financial infrastructure in place. Yes, we have frauds here but probably not more than 1 or 2 a year. Then we are treated like outcasts on the web as some businesses refuses to deal with us because Singapore is bunched into high-risk countries.

I think the report should make US merchants to think twice about how they treat non-US customers.

Being from a conservative country, most of the time any purchase in the store is final. The only time you can exchange the item is that it is damaged or non-functioning but in no way you can exchange for another item (unless they did not have the model you are trying to replace or the whole batch is damaged). Unlike the western world we do not have the 30 days No Question Asked Money Back Guarantee is offered. I have known of people who do not have the money, go make a purchase such as a camera, clothes and so on and then go for a holiday and once they get back home, they return those stuffs and get their money back. Thus putting the merchant at risk. There may be some restocking fees but that's minimal compared to having to actually purchasing the item.

I guess that mindset seems to lies with people who makes internet transaction. They think that suddenly they regret their decisions and do a chargeback to get their money back.

 

This is the main problem when it comes to Asian Countries. Due to some people whole Asia is treated like a heaven for Frauds etc. Anyways I don't like to go offtopic so leaving this debate here will be good

 

What do you mean by that? Not trying to start a debate there Just don't understand.

 

I dont think its Asians who are more into online scams. Nigeria is the place notorious for that.

PC user, if you really want to know how bad chargebacks can be, check out this thread i started a while ago...

http://forums.digitalpoint.com/showthread.php?t=267798

regards
sar420

PS - you have to rep me bak remember! !

 

I just meant I don't want to go off topic. OK now?

 

i have this bad experience.
A buyer buy from me and received my item but do a chargeback to me, he said it is an unauthorized payment...but , do you really think so ????

Nowadays too much of this kind of chargeback buyer ...

 

Chargebacks are a necessary protection for consumers. If consumers didn't have a way to recover their money from a business that is not delivering, businesses could easily take advantage of them. However, because chargebacks are made to protect consumers, they are often abused especially by people with specific knowledge of chargeback reasons. Banks are making it a little more difficult for a card holder to make a chargeback, but still, it normally isn't any more complicated than filling out a short questionaire about a transaction. The worst types of chargebacks are fraudulent chargebacks where the customer is satisfied with the transaction, but they know that if they make a chargeback they will win and still get to keep the service or the product that was ordered.

I have to agree with eddy2099 that it is always favorable to try and solve a problem directly with a business rather than make a chargeback.

 

yeahh, thats the new kind of scam going around the net. Buy first and then chargeback...you get what you wanted for free. This is a big loophole in the system that needs to be addressed...