How do you act with FRAUD payments

Discussion in 'Payment Processing' started by AndyLaw, Dec 2, 2012.

  1. #1
    Hi,

    I was wondering how do you act with clients who chargback the money or put a dispute on paypal.
    As for example, client buys a hosting plan for $10 and then place a dispute on paypal after some 10-15 days. Do you suspend the client, cancel it, contact your client to resolve the issue? I was wondering how do you usually solve these issues?
     
    AndyLaw, Dec 2, 2012 IP
  2. Jared @ 911Lights

    Jared @ 911Lights Member

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    #2
    We always attempt to contact our customers to resolve issues, chargebacks are bad for business. Unfortunately, there are customers out there who use chargebacks for items they don't like or simply don't feel like paying for. We always try to find a workable solution, but if we are certain that customers are abusing the chargeback process we will put their account into collections.
     
    Jared @ 911Lights, Dec 3, 2012 IP
  3. AndyLaw

    AndyLaw Member

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    #3
    Do you every deal with clients to pay again if they do a charge back? As it costs a lot of money for business to suffer it.
     
    AndyLaw, Dec 6, 2012 IP
  4. dormanthero

    dormanthero Peon

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    #4
    Can anyone do this using Paypal? I will be starting a nutrition counseling business very soon and was planning on using paypal as the primary method of payment .. I was going to purchase a paypal swipe machine, so people without a paypal account can still use this method (if in person). One of the services I will offer will be skype consulting. If a person pays for that service, can they just decide to chargeback afterwards, essentially preventing payment to me? How does that work?
     
    dormanthero, Dec 15, 2012 IP
  5. cathaylist.com

    cathaylist.com Well-Known Member

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    #5
    Paypal is standing on buyer's side in most situation.
    I always refund to avoid wasting time on that.
    If the amount is big, don't use paypal. High risky.
    Better to add chargebacks or fraud cost into price.
     
    cathaylist.com, Dec 15, 2012 IP
  6. afoley77

    afoley77 Active Member

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    #6
    Contacting to your customer is only the best way to solve this issue. Because chargebacks are not good for any business. Chargebacks leave a bad impression on the customer.By contacting with customer you can easily resolve this issue as compared to other solutions.
     
    afoley77, Jan 4, 2013 IP