Another Important Way to Prevent Chargebacks

marciayudkin · 11-09-2009, 12:29 PM

This is now the second time this has happened to me, with two different infomarketers, so I have to assume it happens a lot. Actually, it's happened the only two times I have returned products in the last year.

I returned a low-quality product for a refund within the time period covered by the guarantee and neither received any communication from the seller nor received a refund to my credit card. I have proof that the return was received one week ago. Not processing the refund promptly is against merchant account rules.

So I have to initiate a chargeback.

This is really stupid behavior on the part of the seller. Because they don't process returns promptly, they will have chargebacks on their record, which increases their costs and puts them in danger of losing their merchant account privileges if it happens too much.

Have other people had this experience when returning a physical product to an online marketer?

Do you agree that it's just smart and prudent to post credits promptly and let the customer know that it's being taken care of?

Marcia Yudkin

Ken Durham · 11-09-2009, 12:39 PM

Stupid and lazy if it is legitimate.
Good communication with the customer is crucial in preventing problems and keeps you in good standings with them.

Christophe Young · 11-09-2009, 12:58 PM

Yes, totally stupid!

I always return emails from customers the same day and if someone requests a refund, I offer to help them apply my strategies via coaching. I've reversed refund requests doing this and they always appreciate my quick response and coaching offer.

milan · 11-09-2009, 03:34 PM

One week ago? By law they have one month to give you the refund, if I'm not mistaken. Anyways, in most of the situations, I think it's perfectly acceptable to let the customer wait a week or a bit more for a refund. Sellers are not ATM machines, to satisfy their customer's instant cash needs!

DogScout · 11-09-2009, 03:42 PM

Quote:

Originally Posted by Christophe Young

Yes, totally stupid!

I always return emails from customers the same day and if someone requests a refund, I offer to help them apply my strategies via coaching. I've reversed refund requests doing this and they always appreciate my quick response and coaching offer.

Very smart. A call and finding out why can also help with future refunds unless the person just blows the question off. Starting the conversation with, "I am going to refund every dime... oh by the way..." should almost always work.

marciayudkin · 11-09-2009, 03:59 PM

Quote:

One week ago? By law they have one month to give you the refund, if I'm not mistaken. Anyways, in most of the situations, I think it's perfectly acceptable to let the customer wait a week or a bit more for a refund.

This is what it says in the American Express rulebook:

FAILURE TO PROCESS A CREDIT IMMEDIATELY MAY RESULT IN A CHARGEBACK.

It doesn't say the merchant can wait one month to provide a refund.

Marcia Yudkin

Scott Ames · 11-09-2009, 04:07 PM

If they couldn't refund promptly for some reason, ( hey stuff happens ) the very least they needed to do is communicate. People usually understand delays and problems, but not when they are not kept informed.

Tina Golden · 11-09-2009, 04:14 PM

Quote:

FAILURE TO PROCESS A CREDIT IMMEDIATELY MAY RESULT IN A CHARGEBACK

Marcia, that just means that once they run the card through for a credit, the merchant must submit it right away and not wait a month to do so. In other words, once the company decides to refund you and puts the transaction into action, it must be done right away. It does not mean that they have to initiate the refund immediately.

Tina

11-09-2009, 12:29 PM	#1
marciayudkin Marketing Mentor War Room Member Join Date: Feb 2008 Location: Maui and Massachusetts Posts: 1,141 Thanks: 110 Thanked 548 Times in 265 Posts Social Networking	Another Important Way to Prevent Chargebacks This is now the second time this has happened to me, with two different infomarketers, so I have to assume it happens a lot. Actually, it's happened the only two times I have returned products in the last year. I returned a low-quality product for a refund within the time period covered by the guarantee and neither received any communication from the seller nor received a refund to my credit card. I have proof that the return was received one week ago. Not processing the refund promptly is against merchant account rules. So I have to initiate a chargeback. This is really stupid behavior on the part of the seller. Because they don't process returns promptly, they will have chargebacks on their record, which increases their costs and puts them in danger of losing their merchant account privileges if it happens too much. Have other people had this experience when returning a physical product to an online marketer? Do you agree that it's just smart and prudent to post credits promptly and let the customer know that it's being taken care of? Marcia Yudkin
	Author, Meatier Marketing Copy, available in paperback, Kindle, Nook, Audible audiobook “There are few genuine thought leaders in the field of copywriting. Marcia Yudkin is one of them. The strategies she presents in Meatier Marketing Copy are all easy to understand and implement, yet profoundly insightful. If you want to write marketing copy that sizzles and sells, this book is a must-read.” - Steve Slaunwhite, Author, Start & Run a Copywriting Business, Co-Author, The Wealthy Freelancer

11-09-2009, 12:39 PM	#2
Ken Durham Advanced Warrior War Room Member Join Date: Jun 2009 Location: Chesterton, IN Posts: 923 Thanks: 129 Thanked 193 Times in 153 Posts	Re: Another Important Way to Prevent Chargebacks Stupid and lazy if it is legitimate. Good communication with the customer is crucial in preventing problems and keeps you in good standings with them.
	Webmaster Services List Your Wealth Building Systems and Services for Free Insanity is doing the same thing over and over and expecting a different result ~ Einstein Insanity is doing the same thing over and over and never getting the same results ~ Ken

11-09-2009, 12:58 PM	#3
Christophe Young Advanced Warrior War Room Member Join Date: Nov 2008 Location: San Francisco Posts: 586 Thanks: 53 Thanked 92 Times in 76 Posts Contact Info	Re: Another Important Way to Prevent Chargebacks Yes, totally stupid! I always return emails from customers the same day and if someone requests a refund, I offer to help them apply my strategies via coaching. I've reversed refund requests doing this and they always appreciate my quick response and coaching offer.
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11-09-2009, 03:34 PM	#4
milan An Old Hippie War Room Member Join Date: Mar 2007 Location: All Over Europe Posts: 1,596 Thanks: 114 Thanked 128 Times in 80 Posts Contact Info	Re: Another Important Way to Prevent Chargebacks One week ago? By law they have one month to give you the refund, if I'm not mistaken. Anyways, in most of the situations, I think it's perfectly acceptable to let the customer wait a week or a bit more for a refund. Sellers are not ATM machines, to satisfy their customer's instant cash needs!
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11-09-2009, 04:07 PM	#7
Scott Ames Senior Warrior Member War Room Member Join Date: Jun 2006 Location: West of Rockies Posts: 5,556 Thanks: 363 Thanked 665 Times in 325 Posts	Re: Another Important Way to Prevent Chargebacks If they couldn't refund promptly for some reason, ( hey stuff happens ) the very least they needed to do is communicate. People usually understand delays and problems, but not when they are not kept informed.
	Action is the foundational key to all success. - Pablo Picasso