---------------------------------------------------------------------- I have replied them with : ~~~~~~~~~~~~~~~~~~~~~ Any other suggestions to win this chargeback ? We called the customer and he says he simply want to cancel and thats why he chargeback and now Not picking up the call.Purely FRAUD customer.
Most likely you wont win. It doesn't matter what you provide. Since they requested to cancel, the service is non-tangible, and you just stated that they never contacted you requesting support, it's going to be almost impossible to win. Customers whether committing fraud or not have an almost 100% chance of winning any chargeback for non-tangible goods/services. Realistically, if you have performed no service, then why is a refund such a big deal. Additionally, having a 4 year plan paid all at once makes you open for a chargeback up until 180 days after the contract is complete which is 4 years and 6 months from when they sign up. That's a long time to carry liability for a chargeback.
Sellers have almost no change of winning like the user said above. I suggest you call paypal to get it sorted
Does that mean DIGITAL products should NOT be sold ? Seller has no protection regarding the same ? No remedy or way to save ourself in future ?
kolucoms6, Lots of people will look at your post and ask that question. Digital products are an intangible, are they not? Many years ago, I was in merchant services and the only protection any seller of intangibles has from chargebacks is not to sell the products. That's sad but true. The entire processing industry will always side with the person that pays the bill, which is the buyer. You have little to no protection unless you document everything so carefully, as to be silly. You would need to have witnesses, before and after photos or videos, and even attorneys. You would also have to be willing to do far more work to fight it than the sale is worth. You will have some people that do this legitimately, but it is quickly becoming very fashionable to simply steal products using the process. If anything, things will get tighter in the future. I accept PP and they're among the worst, but there are no real alternatives. So, if you want to work and play in the digital world, be prepared to accept chargebacks as a cost of doing business. They won't be going away and they will probably increase as the economy and many other people continue to do badly.
rofro, Been there... done that. Not only do you not get all your money, you have to wait to see if it is collectible by any one of several collection agencies. The reason you don't get all your money is because the collection agency deducts a pre-determined % to collect, which is a pretty hefty chunk. Then you have to wait for them to pay you. Sometimes it take them longer to pay you than it is to try and collect it yourself.
Dynamo, I am fully aware of this. In your contract, you should state that additional fees will be incurred if collections are involved so a larger portion of the chargeback can be recovered. Further, it is not just the money that you are after. These people need to realize that just because they don't feel like paying for a bill, it is completely unacceptable to file a chargeback. The next time that person needs a loan to purchase a new car or buy a house, he'll have only himself to blame for the hit his credit score has taken.
rofro, Yes, I agree 100% with all of that. But, think about it for a second. If you put every contingency on a contract or sales order, you risk scaring buyers away. It's tough enough to sell on the internet as it is. And our terrific government agencies make it harder all the time. And truly, it doesn't happen as often as it could, especially if everyone was aware of their rights of dispute. Some people do have legitimate beefs, while others will always be bandits. None of us can change that. It isn't as major a deal to me as it used to be. Oh, it still makes me angry, but at the end of the year, the IRS lets you write it off as a bad debt anyway. My thinking is that, if this is or anything else, starts chargebacks to happen to you a lot, you need to rethink the products or services you're offering. We're talking about exceptions anyway (I hope), because if you are seeing chargebacks all of the time, something in your process, product or advertising is very wrong. Not everyone is a thief. Like anything else, we all feel differently about stuff like this. If I had a stack of chargebacks for 3 figures each in front of me, I don't think I would be questioning the chargebacks themselves, as much as I would be asking other questions. Other, far more important, things are wrong or missing in my business.
Why not term and Conditions and Refund policy on the website is good enough to fight bakc with merchant ? If no good, then why to provide those on sites ? Anyone has a draft Contract or any Agreement for DIGITAL items ?