How to Merchant Account Owners Avoid a 1%+ Complaint Rate?

The Oilman · 09-12-2009, 04:34 AM

I have good products that deliver, and I've sold them via PayPal and Google Crapout..er checkout.. for over two years.

However, I now have a merchant account with PowerPay.biz, and I am paranoid that I'll get over 1% of people going to their banks and wondering what the mysterious charge was on their credit card.

Of course, I notify them that they'll see my company name on their CC statement... but still, ONE out of 100 will likely whine to their bank. (Sadly, one of my products doesn't really have the most sophisticated and fiscally responsible consumer)

To prevent this, I've made sure that my DOMAIN (of my corp) name is to be seen on the bank statement. I've also changed my phone number to an 1800 number that has a voice mail and a statement to leave their info on the voicemail, along with their name, etc.

I also tuned up my corp domain website to instantly mention something like: "If you've seen _________ inc. on your CC statement, please contact us and we'll be in touch with you... your satisfaction is important to us, etc."

So, I think this should reduce some of this, but I am still paranoid.

Anyone else have any tips?

But a BIGGER question is ---- How the heck do RECURRING, continuity programs get away without someone going to their bank and complaining? I mean -- you see these supplement companies selling things with autoship, or infomarketers selling monthly membership sites, etc.

I see nothing WRONG with continuity, but lets admit it, it can sometimes be a bit sneaky, thus there HAS to be more people going to their banks and complaining... agreed?

CmdrStidd · 09-12-2009, 05:26 AM

You are correct in that many of those companies that have reccurring charges have a much higher rate of complaint than 1%, however, you have done everything you can possibly do to keep that rate down. Besides, did you have more than a 1% refund rate when you were with Paypoop er, ah, Paypal? What about with google throwup er, ah checkout? So why sweat the small stuff. You will do fine. Credit card companies have way more to do than to look and see if you have more than 1 out of 100 customers questioning the charge.

The Oilman · 09-12-2009, 11:32 AM

Heheh thanks pal. Yeah I hate google checkout. What a horrible piece of junk.

But I am not 100% positive you're correct (even though you said a great response).

The 1% is not the REFUND rate. If the customer contacts me I'll refund them -- paypal/checkout OR merchant account.

But the 1% is the fine line with merchant accounts in their REVERSALS. So, if more than 1% of people call their bank (without contacting me first) and their bank contacts my merchant account, people, then I am screwed.

Anyone else have any feedback?

kevinpotts · 09-12-2009, 11:36 AM

In my experience, if you are not dealing in what we all call "Forced" continuity and instead are clear that after the freebie they pay xxx$ per month, recurring, your complaints will be less than 1%.

It's the "sneakiness" of forced continuity that presents the problem.

Kevin

marciayudkin · 09-12-2009, 01:48 PM

Quote:

In my experience, if you are not dealing in what we all call "Forced" continuity and instead are clear that after the freebie they pay xxx$ per month, recurring, your complaints will be less than 1%.

It's the "sneakiness" of forced continuity that presents the problem.

I agree. In addition, it's also a matter of customer service and the relationship you have with your members. If it's a close, personal relationship - i.e., you actually get to know your members - then you should have next to no problems.

The other thing that factors in is your customer service. I joined a continuity program the beginning of August. I didn't like the first mailing I received, so I asked to quit the program. I was told that the owner of the program was on vacation until the beginning of September and he would deal with it when he got back. Well, that was not satisfactory at all. That was outrageous! I told them I would register a complaint with everybody I could if they would not take care of it now, if I were charged again and had to seek a refund.

If you operate your program like that, you will get many complaints.

Marcia Yudkin

The Oilman · 09-12-2009, 02:31 PM

Ok ok.

Well I do not plan to DO THIS, but how do the guys who are NOT super clear with their autoship do it without getting aboove 1%?

In other words, do they use special merchant accounts that allow above 1%?

I guess as long as I have the domain visible in the checking statement, most people will visit the site first and communicate with me first.............

09-12-2009, 04:34 AM	#1
The Oilman Drinking Milkshakes Join Date: Oct 2008 Location: The Wild West of the Internet Posts: 334 Thanks: 5 Thanked 2 Times in 2 Posts	How to Merchant Account Owners Avoid a 1%+ Complaint Rate? I have good products that deliver, and I've sold them via PayPal and Google Crapout..er checkout.. for over two years. However, I now have a merchant account with PowerPay.biz, and I am paranoid that I'll get over 1% of people going to their banks and wondering what the mysterious charge was on their credit card. Of course, I notify them that they'll see my company name on their CC statement... but still, ONE out of 100 will likely whine to their bank. (Sadly, one of my products doesn't really have the most sophisticated and fiscally responsible consumer) To prevent this, I've made sure that my DOMAIN (of my corp) name is to be seen on the bank statement. I've also changed my phone number to an 1800 number that has a voice mail and a statement to leave their info on the voicemail, along with their name, etc. I also tuned up my corp domain website to instantly mention something like: "If you've seen _________ inc. on your CC statement, please contact us and we'll be in touch with you... your satisfaction is important to us, etc." So, I think this should reduce some of this, but I am still paranoid. Anyone else have any tips? But a BIGGER question is ---- How the heck do RECURRING, continuity programs get away without someone going to their bank and complaining? I mean -- you see these supplement companies selling things with autoship, or infomarketers selling monthly membership sites, etc. I see nothing WRONG with continuity, but lets admit it, it can sometimes be a bit sneaky, thus there HAS to be more people going to their banks and complaining... agreed?

09-12-2009, 05:26 AM	#2
CmdrStidd HyperActive Warrior Join Date: Feb 2009 Location: Cincinnati, OH, USA Posts: 296 Thanks: 56 Thanked 34 Times in 28 Posts	Re: How to Merchant Account Owners Avoid a 1%+ Complaint Rate? You are correct in that many of those companies that have reccurring charges have a much higher rate of complaint than 1%, however, you have done everything you can possibly do to keep that rate down. Besides, did you have more than a 1% refund rate when you were with Paypoop er, ah, Paypal? What about with google throwup er, ah checkout? So why sweat the small stuff. You will do fine. Credit card companies have way more to do than to look and see if you have more than 1 out of 100 customers questioning the charge.
	The Taxman wants his money!! Firesale is on at det-enterprises.com!!! 1,000's of articles on sale now!!! *Everything at ridiculously low prices.*

09-12-2009, 11:32 AM	#3
The Oilman Drinking Milkshakes Join Date: Oct 2008 Location: The Wild West of the Internet Posts: 334 Thanks: 5 Thanked 2 Times in 2 Posts	Re: How to Merchant Account Owners Avoid a 1%+ Complaint Rate? Heheh thanks pal. Yeah I hate google checkout. What a horrible piece of junk. But I am not 100% positive you're correct (even though you said a great response). The 1% is not the REFUND rate. If the customer contacts me I'll refund them -- paypal/checkout OR merchant account. But the 1% is the fine line with merchant accounts in their REVERSALS. So, if more than 1% of people call their bank (without contacting me first) and their bank contacts my merchant account, people, then I am screwed. Anyone else have any feedback?

09-12-2009, 11:36 AM	#4
kevinpotts HyperActive Warrior War Room Member Join Date: Sep 2009 Posts: 108 Blog Entries: 6 Thanks: 1 Thanked 26 Times in 17 Posts	Re: How to Merchant Account Owners Avoid a 1%+ Complaint Rate? In my experience, if you are not dealing in what we all call "Forced" continuity and instead are clear that after the freebie they pay xxx$ per month, recurring, your complaints will be less than 1%. It's the "sneakiness" of forced continuity that presents the problem. Kevin
	Tim Lowe & Kevin Potts Forum Is Finally Here

09-12-2009, 02:31 PM	#6
The Oilman Drinking Milkshakes Join Date: Oct 2008 Location: The Wild West of the Internet Posts: 334 Thanks: 5 Thanked 2 Times in 2 Posts	Re: How to Merchant Account Owners Avoid a 1%+ Complaint Rate? Ok ok. Well I do not plan to DO THIS, but how do the guys who are NOT super clear with their autoship do it without getting aboove 1%? In other words, do they use special merchant accounts that allow above 1%? I guess as long as I have the domain visible in the checking statement, most people will visit the site first and communicate with me first.............