how to fight charge back of non delivery of digital service

Discussion in 'Payment Processing' started by hostimizer, May 12, 2013.

  1. #1
    hello friends

    i am using Indian Payment Gateway

    before some month one of my Clint file charge back of non delivery service
    my bank said to me to provide proof of delivery

    i provide all invoice emails screenshot of delivery emails but bank refund money to Clint :(

    please advice me to fight with charge back

    many Clints do same order vps and dedicated server after using 1-2 month file charge back of non delivery or fraud using credit card

    any way to provide proof of delivery of digital services ??? if yes plz tell me ...

    i also find something ... http://en.wikipedia.org/wiki/Friendly_fraud

    so what i do now ? stop my business or any way to protect it from fraud charge back

    Regards
    LithiumWeb
     
    hostimizer, May 12, 2013 IP
  2. hostimizer

    hostimizer Well-Known Member

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    #2
    i want to digital product delivery confirmation system .. which is allow from bank for proof of digital product delivery confirmation

    Regards
    LithiumWeb
     
    hostimizer, May 13, 2013 IP
  3. paymentconsult

    paymentconsult Greenhorn

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    #3
    One thing you can try is get them to digitally sign documents. There are a couple of such services. I believe these signatures can be defended in court of law and reduce chance of friendly chargeback.

    I have also heard about Maxmind which has various tools to fight against chargebacks.

    Then there is the option to use 3D secure processing which also reduces chances of friendly chargeback. It may dis-encourage some genuine buyers as well, however.
     
    paymentconsult, Jun 21, 2013 IP
  4. jessica.lee

    jessica.lee Greenhorn

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    #4
    Preventing chargebacks for digital delivery is one of the most difficult tasks you'll face. And unless you have a rock solid case, fighting them is nearly impossible. In addition to the suggestions made above by paymentconsult, I would recommend you consider professional help. Companies like Chargebacks911 help merchants set up a system to manage chargebacks to the best of your abilities. Good luck!
     
    jessica.lee, Oct 31, 2013 IP
  5. cow666

    cow666 Peon

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    #5
    A) Actually, Bitcoins is showing the way (as in many things) with the escrow system. It does exist btw for regular online transactions https://www.escrow.com/. IMHO, best practice for digital goods.

    B) Creating an activation key for your product can be a fairly good idea as well.

    C) Or just somewhere in the cloud, with a one time access code to download the file, hence proving that your customer has taken delivery of its product.

    There must be many other ideas around to circumvent abusive refunds...

    N
     
    cow666, Nov 1, 2013 IP
  6. WebDev Solutions

    WebDev Solutions Well-Known Member

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    #6
    Best response of the thread.

    Essentially, fighting them is next to impossible, and I don't see that changing anytime soon.

    WebDev
     
    WebDev Solutions, Nov 3, 2013 IP
  7. NetStar

    NetStar Notable Member

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    #7
    If the product you are selling exceeds X amount of dollars turn it in to a physical product that is physically delivered. If your product does not exceed X amount of money and you choose to distribute it digitally you can just move along to your next sale since you have not lost any money.
     
    NetStar, Nov 4, 2013 IP
  8. Nico617

    Nico617 Peon

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    #8
    I have several years experience in dealing with Chargebacks. Digital goods are by far the hardest but there are still some solutions available that I've seen work. It depends on where the core of your clients are located.
     
    Nico617, Jan 10, 2014 IP
  9. Faraz Akhtar

    Faraz Akhtar Greenhorn

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    #9
    Sorry to hear about your issue. You can easily set digital signature system, so that you don't have to face such problems. However, there are other things to be considered also, if you want to discuss in detail, add me on skype at great.helper1 and i will guide you further.

    I suspect rats in you client companies that are assisting such customers in filing chargebacks to damage the company's credibility and cripple it. This is just my take, there are other factors as well. You can also discuss your issue with me in detail on skype, i gave my id above (just because some things may be confidential that you might not like to discuss on open forum.)
     
    Faraz Akhtar, Jul 26, 2015 IP
  10. fionix

    fionix Well-Known Member

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    #10
    Your customer will most often always win the battle! Fight chargebacks for digitial services is almost impossible unless you have a contract that is signed by the customer, passport copy and utility bill from them!
     
    fionix, Jul 28, 2015 IP