Home » Forums » General » General Discussion

Your experience with chargebacks?

Submitted by giorgio79@drupal.org on Tue, 06/10/2008 - 12:35
giorgio79@drupal.org
Posts: 63
 Joined: 02/02/2008

Hi,

I was all geared up so far with starting my own online shopping stuff and obtain a steady cashflow but recently I read up on the whole thing, and realized there is a downside to it as well (apart from all the time you put into building it Sticking out tongue ), namely chargebacks.

I am planning on using paypal website payments standard, and was wondering what is your experience with chargebacks in general, and maybe from a paypal perspective as well. Some stats would be great, like what percentage of your customers ask for a chargeback etc etc. Reading around forum posts it seems in case of a chargeback, online sellers are unprotected.

It you have any best practices in minimizing them that would be nice too.

Cheers,
G

--

ClipGlobe - World Travel
permalink #1 Tue, 06/10/2008 - 23:57
Ryan

Posts: 5378
 Joined: 08/07/2007
AdministratorHead Code Monkey - I eat bugs.

Keep good paperwork, especially on your shipments. PayPal generally favors the customer when it comes to chargebacks (don't wanna lose their own customers now, do they? Sticking out tongue), but it's not so great a problem that it would turn me off from using them.

You might even consider building some loss into your operating costs due to scams/chargebacks just in case. It kind of depends on the value of the products you're selling, too.

permalink #2 Wed, 06/11/2008 - 02:50
alien73

Posts: 146
 Joined: 11/10/2007
Bug Finder

We have experienced all kinds of scams from customers in the last 10 years of doing business online.

When we ship we make note to the customer the tracking number, inspected by, the size of the box, shipping weight even note that it was double taped etc... The newest scam we are experiencing is the package arrived but the box was empty... LOL.

In other words put all the info possible in your shipping confirmations so it deters your not so honest customers from filing a chargeback.

--

Give and you will receive, you will be given much. Pressed Down, Shaken together, Running Over, it will spill into your lap.

permalink #3 Wed, 06/11/2008 - 14:31
giorgio79@drupal.org
Posts: 63
 Joined: 02/02/2008

Unbelievable... I guess that would be hard to contest when the customer says "the package was empty" Have you ever won such a case?

I hear even if you state in your return / refund policy that you do not provide any refunds, there are laws overriding such an agreement, and you will be charged back by the credit company.

I read elsewhere that a follow up phone call helps as well to clear the customer, but I guess as you say, they can still say that the box was empty...

Are there any databases maybe of bad customers? I know of the Better Business Bureau dealing with merchants, but we should have one for customers as well Sticking out tongue

--

ClipGlobe - World Travel

permalink #4 Wed, 06/11/2008 - 15:32
alien73

Posts: 146
 Joined: 11/10/2007
Bug Finder

We have won some lost some.. you have to be on your toes when you talk to your customers on phone and after 10 years of doing business online you can see right through them quickly. We have even been to small claims court and won cases. Good paperwork is the key. Insuring a package will also clear up the empty package claim.

There's more positives then negative.

--

Give and you will receive, you will be given much. Pressed Down, Shaken together, Running Over, it will spill into your lap.