Chargebacks

It doesn't matter how great your product is, you're still going to get people doing it - often for the most ridiculous reasons.

Consider it a cost of doing business and move on. If it's bad, ban the person from buying any of your proudcts.

Refund guarantee is not mandatory. You don't have to offer it in your sales letter.
It's not a big problem if you offer it and can deliver your promise to refund it when the buyer asks it.
The problem is if you don't deliver your guarantee.

Chargebacks are not a problem if you don't oversell or misrepresent the product or service you're selling. Sure, there are some people who will attempt to scam you but in my experience it doesn't happen very often. Of course, this can depend on the type of product and price. If you sell a product for $99 that promises to make the buyer a millionaire in a week, you WILL get chargebacks.

Clickbank is absolutely notorious for allowing refunds if the customer even sneezes the wrong way. My opinion is this enables theft. If you're worried about chargebacks I'd stay away from Clickbank.

Rick

Chargebacks are not only bad but can become costly. Chargebacks can come with penalties so you don't only lose the amount of the sale but may have to pay more for the penalties.

Many times customers feel abandoned and don't know where to turn to get answers so they resort to the chargeback.

Use the chance of a refund as a positive and place a good money back guaranty and honor that guaranty. Make it easy for customers to contact you because it could be they don't understand something and then think your product does not work for them.

Be prepared to answer their questions. Follow up with your customers in emails asking how they are doing with your product and offer free bonuses that help them make your product work better. Let your customers know that have not abandoned them and are continuing to offer help.

This can be as simple as autoresponder follow up messages.

Don't worry about refunds because they do happen and it is a good way to get refunders out of your system so you can concentrate of the serious people who really want your products.

It is when a refund escalates to a dispute or chargeback that can really cause you a problem.

Best regards,
Steve Yakim

Thanks for all of the responses


I did a Google search on "chargebacks" and this is what I had found:


https://www.google.com/#q=chargebacks


I thought to make a solution to the problem but was could not tell if it was an actual issue altogether or an imagined one.

Yes, chargebacks are of very high concern for online merchants. Anything over a 3-4% chargeback rate for merchants will usually put their account at risk, from what I've gathered in the IM field over the last few years.

Merchants can avoid thses problems for the most part by offering quality products or services, providing prompt and efficiant tech support, etc.

It's simply a matter of risk versus reward for merchant account providers. They really want to collect the fees on the transactions that go through, but even they have to answer to the big credit card company's like Mastercard and Visa.

If you are dropped from a traditional payment processor, all is not lost and there are other options out there. Options that are usually based oversees in places like thre UK and Hong Kong for example. These alternative payment processing company's that specialize in high risk clients almost always charge super high fees so watch out! Online casinos, sketchy IM products/services are some of the niches that usually turn to this genre of merchant providers.

Yes, your merchant account can be shutdown if you have high % of chargebacks.
For regular merchants, VISA has a rule-of-thumb of 1% chargebacks.
For high risk accounts like digital products, you probably have to go with a provider that understands high risk ecommerce. You will pay a higher rate per transaction when your chargebacks are high, but at least your account won't be shut down. Also, you can get multiple merchant accounts and use a gateway to alternate transactions between merchant accounts to lower the risk.

Paul in Los Angeles