When a USA customers filing for Chargeback, I heard they loose 35$ per chargeback they file. Is that true ?
The fees generally range from about $10 to $50. $15 - $25 is probably the most common. Otherwise, yes the business loses this amount if they receive a chargeback.
So, if customer threatens to chargeback, we can refund the money deducting 25$ so that we can cover up some cost of ours ?
for only moneytransfer, there is no fee on a chargeback.. but then when a USA guy chargeback on a product/service purchased covered under seller protection.. the fee applies..
Ideally you want to take a proactive approach with your customers. It is always better to refund that to receive a chargeback. A chargeback generally means that you failed to provide the product/service that was agreed upon. A chargeback automatically removes the money from your account. There's no possibility of deducting the chargeback expense, and it is not allowed by Visa/MC to pass this or any other fee to your customer. You can charge a restocking fee, which is common for tangible products. In this case you would need to issue a refund, but it is fairly common for a 15%, or possibly more, restocking fee.
Chargebacks can be a pain. Most of the time the customer will win and you are left out in the cold. This is why you always want to have delivery conformation and investigate any "gifts" that are to be delivered to a separate address other than the billing address. In my industry there is a lot of gift giving of games so I have to allow this. Anything over $150 results in a phone call to the card holder by HCG if the item is gifted or there is the slightest doubt in the transaction. I have had times when someone says they did not get the item and issues a chargeback. I dispute it and send all of the information. The customer still wins. So I'm not only out the refund and the chargeback, but also the cost of the product. It is a never ending battle.
Exactly I sent the product and customers says she didn't like that product. Now, she filed for dispute and wants 100% refund. If I issue partial refund , how paypal will react to it ?
Do you have any terms on returns posted on your site? 15% restock or something? Since it is paypal I would refund 100% since it doesn't cost like regular credit card processing would have. I have found it is best to please the customer and take the loss as it does not take much for someone to go around complaining about you and hurting your reputation. If it is not much of a loss just eat it and tell them you guarantee 100% satisfaction and you will not rest until they are happy (to a point at least) PS: I have at times sent gifts or refunded partial payments even when a customer got what they ordered if the delivery time was very long or they were not happy about something. This might have cost me a few bucks but it also bought me a devoted customer that enjoyed being treated like a person instead of a number like the big companies treat people. I have quite a few Thank You emails here from customers for going out of my way to assist them.
yes i am like those customers if some one treat me as vip person i be loyal to him even if his prices is more the most important thing is customer service
You should initiate refund only after reaching a settlement with the buyer and only if the buyer is ready to withdraw the chargeback. Do not initiate refund on your own! In case of chargebacks, Paypal will automatically hold and deduct the full transaction money! Regards, RightMan