Chargebacks how to handle it?
let me itroduce this story for awhile... i have a Social Media Promotions services business working for about 7-8 months. I work like many of you guys with a nice website aggregated a well known payment processor, in this case Paypal, but could be another one for this matter.
Today i received an e-mail from paypal telling me that a customer had requested a chargeback from his bank, the transaction is from 1st July 2012, i have delivered his service at the time but today the guy did this to me, well the issue is not getting this from scammers since this business goes very well, but my issue here is the following:
about paypal and chargebacks, the seller has protection for tangible goods, so i am not eligible since a service is considered a virtual "product".
But what matters to me is that people start to order services and few weeks, months later (after receiving the service) will start to ask for chargebacks.
My question is , what can we do about it (lets say that you are a webdesigner a SEO consultant, etc) so i believe that services are at stake here so people without respect to scam us by this way.
I know asking for checks or wire transfers are options but will decrease the conversions very much.
I was thinking in a workaround that i do not know if it works but for future customers i will do it from a certain order values.
In case of paypal they will require a copy of the shipment, so i am thinking to send an invoice by mail acordingly with paypal rules, so when this occur i will have the proof of shipment. Its an extra cost but at least will have some facts to comprove that i have shipped the invoice and the customers will receive a tangible "thing".
What i really think is that banks should have a way to control the services that are paid by credit card should have a similar treatment. Well in 7-8 months i only had 1 chargeback so its not a big deal, but this worried me, because if a Big customer start to think to work like this, then i will start to have issues.
What do you guys think about this.
Thanks,
Morg
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