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Chargebacks. How do you deal with them?

by TolyZ
16 replies
Hey guys,
This is mostly to the people that offer services online and accept credit cards / paypal payments.
Scenario:
Got an order on the Jan. 16th.
Delivered the work on Jan. 18th.
ChargeBack - 1 min. later the work was done.
Obviously he is trying to get away from paying for the work.
How do you guys usually deal with it?
#chargebacks #deal
  • Profile picture of the author hustlinsmoke
    You just deal with it. Remember this, if you have no proof they received the item then they pretty much get there charge back. When I have a high profile site and start getting alot of chargebacks, I will send a confirmation letter out with confirmed receipt at least this way it cuts down on some.

    Also remember this, most chargebacks will go through no matter what you do. Its the credit cards way, even if paypal denies the chargeback because the cc they used on paypal they can also chargeback from there.

    American Express gives three unquestioned chargebacks a year, I had a student once that got ripped off 3,000 for a car. He took the guy to court and won but never got reimbursed for the car.
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  • Profile picture of the author robestrong
    First ask them why. If they are really just trying to scam you they will either have a clearly cop out response or they won't reply at all. If it was an honest reason you'll know. You're giving a service so you'll want to deal with it differently then I did. I've sold products, in which case I always gave a refund. But a service is different because you can't undo the work.
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  • Profile picture of the author hustlinsmoke
    You know its okay though when you have a membership site or a web based software program then you can cancel there account.
    Most my software now I develop is web based for that very reason plus I like residuals.
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    • Profile picture of the author robestrong
      ^^^ This is another great idea if you are offering an on-going service. Of course if it's one time then you're out of luck.

      Also... If you're giving out backlinks (I'm just guessing from your sig), then you can probably edit/remove the links by hand. Would it be a pain in the neck to do so? Probably. But if you did that then emailed the guy telling him so, then at least he'll know he can't get away with it.

      Obviously if you can get your money then try, but barring that, try to undo what you did so he doesn't get away scotch free.
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  • Profile picture of the author KevinBurns
    After 12 years of marketing products and services online, there's one universal rule that I learned quickly...

    "Chargebacks are a part of doing business online"

    Your always going to have somebody who isn't happy and those that are just trying to rip you off and there's really not a whole lot you can do about it.

    My advice would be to simply send him a speedy, polite refund and be done with it. When I get scammed I just make note of the person's name and paypal email address and I don't do business with them anymore.

    The sooner I accepted the fact that there are going to be chargebacks when doing business online, the easier it has been to deal with them.

    You will find that most of your customers are probably decent people who want your service...

    A wise Internet Marketer once told me...

    "There are only 10 people in the whole world looking to scam you and rip you off...
    they just move around alot..."

    hope this helps
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  • Profile picture of the author hustlinsmoke
    My highest chargeback rate on a product was 2 percent. Now membership sites the avg user only stays subscribed for about three months.
    Refunds ----- Some of my software used to be with a learning curve and this creates alot of refunds.
    Like you I know when I have been scammed usually. It usually comes right after they get what they ordered, just don't let it get to you.
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  • Profile picture of the author JohnDBrewer
    I know that this happens but an idea came to me that in order for them to get their product, they have to go to a portal of some sort saying that their product is done and ready for review but they have to approve before you will release the product... just an idea.
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    • Profile picture of the author hustlinsmoke
      Originally Posted by JohnDBrewer View Post

      I know that this happens but an idea came to me that in order for them to get their product, they have to go to a portal of some sort saying that their product is done and ready for review but they have to approve before you will release the product... just an idea.
      It could work if you got the arbitrator from whatever payment processor to go and look and then they have to decide where it is honest or a spam post from the creator.
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  • Profile picture of the author TolyZ
    It just really annoys me ...
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  • Profile picture of the author hustlinsmoke
    Yep there As welcome as a skunk at a lawn party.
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  • Profile picture of the author Spock1
    It is the cost of doing business.Hopefully you get more honest customers than not. It is the equivilent of shop lifting for brick and mortar retailers.
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  • Profile picture of the author ryanmilligan
    Banned
    There are always going to be people who try to get something for nothing.

    Nothing we can do about it.

    Just have to deal with it. It's something we all go through. If you really think that he is trying to rip you off just black-list him and forget about it.

    No point in stressing over it.
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  • Profile picture of the author Ben Gordon
    I call the cops.

    But seriously, there's nothing you can do about it. Unless you have a contract with his signature exactly stating that he'll pay the amount of money for the service done, you won't be able to reverse the chargeback.

    If it's an article you've written though, make sure to tell him that he doesn't have copyrights to that article anymore and he can't use it. Same goes for anything else such as videos or voice overs. I have experienced it multiple times and this is the action I've taken. Not many listen to "you have no more copyright for this product" but it does work in some scenarios.
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  • Profile picture of the author j0b0123
    Paypal is better than regular CC about disputes/chargebacks. If you have delivered a product to the person, you can supply the same to paypal through dispute resolution to prove you supplied the paid goods. At the very least they tend to look at what you send when making a decision. In the few I have had, I have always prevailed.

    One of the worst was someone ordering a scraped list if sites for BMD. They ordered at 2am my time, by 2:02am they had already initiated a chargeback through paypal. Delivery was set to auto so I know they got it, but 2 minutes? That was a pure scam to just get the list for free and was denied by paypal.
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  • Profile picture of the author ciscopower
    Officially you can show your proof to paypal and do a complaint, but you'll find out you get nothing in the end.

    Just like hustlinsmoke said " this is a style of cc, it is nothing related with whatever you do".
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