Dealing with chargebacks

[Dave M]

Recently, I've had a customer place a chargeback on a purchase that he made. Apparently he wasn't satisfied with the product, but instead of asking for a refund like any sensible person would do, he went ahead and issued a chargeback.

Needless to say, that kinda ruined my day. I would have refunded him if he'd just asked. Getting chargebacks ruins my credibility as a seller, and Paypal isn't exactly friendly towards sellers when it comes to "intangible goods".

Anyway, lesson learned. But just in case it happens again, are there any ways to protect yourself from chargebacks?

[Shane Phillips]

Originally Posted by Dave M

Recently, I've had a customer place a chargeback on a purchase that he made. Apparently he wasn't satisfied with the product, but instead of asking for a refund like any sensible person would do, he went ahead and issued a chargeback.

Needless to say, that kinda ruined my day. I would have refunded him if he'd just asked. Getting chargebacks ruins my credibility as a seller, and Paypal isn't exactly friendly towards sellers when it comes to "intangible goods".

Anyway, lesson learned. But just in case it happens again, are there any ways to protect yourself from chargebacks?

The best way is to keep an eye on the "Paypal disputes" that are opened by the customer and if you don't respond on time, they process it further. You need to maintain your communication with your payment processor as well as the client in order to reduce the no. of chargebacks.

Regards,

Shane Phillips

[Dave M]

Problem is, I don't check my Paypal account every day. Looks like I might have to start doing that. What I really dislike about Paypal is that on cases like this, Paypal almost always sides with the buyer, especially when dealing with what they call "intangible goods". >_<

[iamsam]

If your transactions are of a suitably high amount (three figures worth, or so), then you should look into using an escrow service. That way, there is zero risk of chargebacks. Escrow fees can be a tad expensive, though, so this is best used for large amount transactions only.

[Dawnsday]

I've never had a charge back with Paypal. I sell on Ebay regularly and never seen this happen before. Although I'm sure it happens to people everyday.

[Spooky]

If you can use Google Checkout instead of Paypal, then use it. They're not quite as arbitrary in deciding against the seller like Paypal is. You could also try Moneybookers -- they claim to offer full chargeback protection.

[bossbob]

I agree charge back are not exactly fair. I don't see how Paypal can allow an Ebay customer to do a charge back without first checking with the seller.

[kirkas]

Unfortunately, there's no real way to protect yourself against fraudulent chargebacks. Even Paypal's Seller Protection Policy wouldn't help if the credit card company of the person issuing the chargeback sides with the buyer. I just finished reading a story where one person got -$3000 because a buyer issued chargebacks against purchases that were made around a month or so before! It's an unfriendly world out there for merchants who accept credit cards. >_<

[Shane Phillips]

Originally Posted by kirkas

Unfortunately, there's no real way to protect yourself against fraudulent chargebacks. Even Paypal's Seller Protection Policy wouldn't help if the credit card company of the person issuing the chargeback sides with the buyer. I just finished reading a story where one person got -$3000 because a buyer issued chargebacks against purchases that were made around a month or so before! It's an unfriendly world out there for merchants who accept credit cards. >_<

Yes, when we speak of fraudulent transactions and orders. You definitely need Max Mind to reduce the no. of fraud orders.

Regards,

Shane Phillips