How Does Everybody Handle Chargebacks???

jeffreyasolochek · 08-10-2008, 05:03 PM

With Digital products if I offer a 100% refund po;icy I get more sales but then afgain I get a lot more chargebacks.

I can no longer sell myt digital products on Ebay using the auction feature.

What percentage of chargebacks is notmal to expect?

Your ideas and input will be greatly appreciated.

Thanks in advance

Jeffrey A. Solochek

Scott Ames · 08-10-2008, 05:15 PM

Do you mean refunds? Chargebacks and refunds are two different things.

mmurtha · 08-10-2008, 05:15 PM

Hi Jeffery,

I'd say it depends on the product, plus other variables like what crowd is buying.

For instance, if your product is junk then people are most likely going to ask for a refund. Plus, if someone bought the product hoping to get specific inormation, but didn't they will do a chargeback as well.

I've seen some stats that go for a 1.5% - 67%. I've never sold digital products on eBay though. The stats came from friends of mine, but seeing these or hearing about the stats sure did make me rethink putting up anything digital.

EBayers do buy some digital, but them prefer physical products over anything. That may have something to do with it too.

You simply don't no.

Mary

Britt Malka · 08-10-2008, 05:49 PM

From what I've heard, it's more "normal" to get asked for a refund, if you sell at ClickBank. Because it's so easy, and you don't necessarily have to deal with the seller himself.

But if you sell your products in another way - I don't know what's normal. I never had any demands for refunds on my own products, and only two for a product I have resell rights to (and I've sold hundreds). I guess about 1 pct. is perhaps considered "normal"?

If you create quality products, you have less refunds than if you create bad products.

myob · 08-10-2008, 06:01 PM

Price your products to allow for about 3% in chargebacks and/or refunds. It WILL happen no matter what you do.

Kim Standerline · 08-10-2008, 06:29 PM

Quote:

Originally Posted by Italian Guru

Forgive me for being dense, what is a chargeback?

A chargeback is when someone contacts their credit card and complains about a transaction, they will quite often say it is fraudulent (which it may well be). Or the goods are not as described etc. (which they may not be).

Its a pain in the ass when people do charge backs without asking for a refund first,

Kymi

myob · 08-10-2008, 06:34 PM

A chargeback is a reversal of a credit-card transaction. It usually occurs when a consumer files a complaint with their bank or credit/debit card provider. A consumer claims a fraudulent transaction on their statement or misrepresentation from the order page. Often the consumer complaint is untrue, and their refund claim gets denied. In these situations, the merchant will still be charged processing fees. The bank will investigate complaints, and will "take back" the value of the original transaction, together with an additional fee directly from the merchant's account, unless the merchant can prove the transaction was legitimate. This can be especially costly if you have a high volume transactions or sell high priced products.

08-10-2008, 05:03 PM	#1
jeffreyasolochek Warrior Member Join Date: Aug 2008 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	How Does Everybody Handle Chargebacks??? With Digital products if I offer a 100% refund po;icy I get more sales but then afgain I get a lot more chargebacks. I can no longer sell myt digital products on Ebay using the auction feature. What percentage of chargebacks is notmal to expect? Your ideas and input will be greatly appreciated. Thanks in advance Jeffrey A. Solochek

08-10-2008, 05:15 PM	#2
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	Do you mean refunds? Chargebacks and refunds are two different things.
	Action is the foundational key to all success. - Pablo Picasso

08-10-2008, 05:49 PM	#4
Britt Malka Alliance Queen War Room Member Join Date: Dec 2005 Location: Haifa, Israel Posts: 503 Blog Entries: 9 Thanks: 222 Thanked 214 Times in 99 Posts Social Networking	From what I've heard, it's more "normal" to get asked for a refund, if you sell at ClickBank. Because it's so easy, and you don't necessarily have to deal with the seller himself. But if you sell your products in another way - I don't know what's normal. I never had any demands for refunds on my own products, and only two for a product I have resell rights to (and I've sold hundreds). I guess about 1 pct. is perhaps considered "normal"? If you create quality products, you have less refunds than if you create bad products.
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08-10-2008, 05:15 PM	#3
mmurtha Senior Warrior Member War Room Member Join Date: Dec 2005 Location: Hubbard, Ohio, USA. Posts: 4,387 Thanks: 333 Thanked 113 Times in 89 Posts Social Networking Contact Info	Hi Jeffery, I'd say it depends on the product, plus other variables like what crowd is buying. For instance, if your product is junk then people are most likely going to ask for a refund. Plus, if someone bought the product hoping to get specific inormation, but didn't they will do a chargeback as well. I've seen some stats that go for a 1.5% - 67%. I've never sold digital products on eBay though. The stats came from friends of mine, but seeing these or hearing about the stats sure did make me rethink putting up anything digital. EBayers do buy some digital, but them prefer physical products over anything. That may have something to do with it too. You simply don't no. Mary

08-10-2008, 06:01 PM	#5
myob Mind Your Own Business War Room Member Join Date: Jul 2002 Location: Los Angeles, CA Posts: 3,505 Thanks: 539 Thanked 2,119 Times in 1,304 Posts	Price your products to allow for about 3% in chargebacks and/or refunds. It WILL happen no matter what you do.

08-10-2008, 06:34 PM	#7
myob Mind Your Own Business War Room Member Join Date: Jul 2002 Location: Los Angeles, CA Posts: 3,505 Thanks: 539 Thanked 2,119 Times in 1,304 Posts	A chargeback is a reversal of a credit-card transaction. It usually occurs when a consumer files a complaint with their bank or credit/debit card provider. A consumer claims a fraudulent transaction on their statement or misrepresentation from the order page. Often the consumer complaint is untrue, and their refund claim gets denied. In these situations, the merchant will still be charged processing fees. The bank will investigate complaints, and will "take back" the value of the original transaction, together with an additional fee directly from the merchant's account, unless the merchant can prove the transaction was legitimate. This can be especially costly if you have a high volume transactions or sell high priced products.