Chargebacks

Frankie · #1 (**permalink**) 03-10-10, 06:14

How do you handle refunds or charge backs on digital items? There is no way that you can disable the document that you have sold after the fact, so they basically get your product for free, isn't that true? So how can you avoid being scammed for basically free products?

BodShane · #2 (**permalink**) 03-10-10, 08:12

In case of chargebacks, you need to verify every information of the customer. The best way to reduce chargebacks is monitor them and also look for e-commerce software such as Fraud Guardian.

carl owen · #3 (**permalink**) 03-10-10, 19:07

One of the best ways to avoid chargebacks is using payment gateways such as Google checkout which verifies the payment extremely well due to which only genuine customers are able to clear the verification process and if you only get genuine customers for the products you sell, chargebacks will be almost none

NCHosting · #4 (**permalink**) 03-11-10, 06:50

Quote:

Originally Posted by carl owen

One of the best ways to avoid chargebacks is using payment gateways such as Google checkout which verifies the payment extremely well due to which only genuine customers are able to clear the verification process and if you only get genuine customers for the products you sell, chargebacks will be almost none

Hey Carl.

If someone decides to perform a Chargeback through their bank or financial institution, how does Google checkout help in this situation?

Chargebacks occur through both legitimate and non legitimate customers.

A consumer may initiate a chargeback by contacting their issuing bank, and filing a substantiated complaint regarding one or more debit items on their credit card statement. Chargebacks are the consumer's last line of defense against unscrupulous merchants. The threat of forced reversal of funds provides merchants with added incentive to provide quality products, helpful customer service, and timely refunds as appropriate. Chargebacks also provide a means for reversal of unauthorized transfers due to identity theft.

With each Chargeback the issuer submits a numeric code. They fall into four categories.

Technical
Clerical
Quality
Fraud.

For transactions where the original invoice was signed by the consumer, the merchant may dispute a chargeback with the assistance of their acquiring bank. The acquirer and issuer mediate in the dispute process, following rules set forth by the corresponding bank network or card association. If the acquirer prevails in the dispute, the funds are returned to the acquirer, and then to the merchant.

It all boils down to what you are offering, how you advertise the product and if you are a legitimate business, or just a business out to rip people off with shoddy merchandise.

The best thing to do to avoid Chargebacks are.

1. Do the right thing. Give your customer what you advertise you offer.
2. Don't rip people off.
3. Don't offer a worthless product.
4. If you have done the above, speak to your Merchant and sort the issue out.

carl owen · #5 (**permalink**) 03-11-10, 18:39

Thank you for the wonderful information provided NCHosting. It is indeed helpful

Offering the products and services you mention on your site is very essential in order to make sure that chargebacks are very less. If you offer the products and services you mention on your site, chargebacks for customers will definitely reduce and the chargebacks from Potential customers will be next to none

There are chargebacks from Potential customers as well, however, if you notice, you'll find that there are very less cases of chargebacks from Potential customers as against the cases of chargebacks found from fraudulent customers.

Payment gateways like Google checkout will help you by reducing the number of fraudulent customers to your site and if the number of fraudulent customers decrease, the number of chargebacks will decrease as well

Mickey · #6 (**permalink**) 03-12-10, 12:16

Google Checkout..., well, I never used it but I believe that it's a good payment gateway, considering that it belongs to Google. Just curious, why do you recommend Google Checkout and not PayPal?

carl owen · #7 (**permalink**) 03-12-10, 20:48

Quote:

Originally Posted by Mickey

Google Checkout..., well, I never used it but I believe that it's a good payment gateway, considering that it belongs to Google. Just curious, why do you recommend Google Checkout and not PayPal?

Paypal is also one of the best payment gateways and hence there is no problem in choosing Paypal as a payment gateway

Google Checkout is recommended as it is noticed that the verification process of Google Checkout is almost flawless due to which the chances of fraudulent orders i.e. payments coming through are minimum