How do you reduce chargebacks?
- Thread starter BBergin
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I'm guessing you're an advertiser with an offer out in affiliate networks, and not just running it yourself? Are you talking about straight up fraud (by affiliates), fraud by consumers (to get a free product), or just having a really shitty offer that nobody wants to be rebilled for and doesn't think is worth the money they spend?
I think it's mostly stupid customers who are too fucking lazy to send an email or pick up the phone to request a refund. The offer is solid. I did some research on chargeback rates by issuing bank and Bank of America cards make up over 80% of chargebacks. I'm just looking to see if anyone has a company they work with that can reduce this annoyance.
Do you have an additional product for sale on the checkout page? You should look into adding something on there if you don't, both for extra revenue but also to reduce your charge back %
I don't mean forced rebill upsells, I mean products for purchase. A lot of times adding a 2nd product they can purchase for a flat rate at checkout can reduce your chargeback rates
If you're selling something shady you cant really reduce chargebacks. It's a part of business. I hope you have a solid bank you're working with that allows for high chargebacks. I'm sure they hit you with a rolling reserve as well to cover these. How high are they?
Never be afraid of chargebacks if you have the foundation set up. They can come in like crazy into your office, remain calm, and defend each of them the same way. Same day - don't let the CB notifications sit in your office while you moan about responding to them. Hire a girl whose sole job is to defend them. It's all boilerplate. Show your website's FINE PRINT explaining how theyre rebilled (feel free to print using a larger font) and highlight it, make it look like you took great care to put together this package for the bank. Most of them should go away unless you're being really really shady and someone from the bank checks out your website a second time and catches you doing something just plain wrong.
Never be afraid of chargebacks if you have the foundation set up. They can come in like crazy into your office, remain calm, and defend each of them the same way. Same day - don't let the CB notifications sit in your office while you moan about responding to them. Hire a girl whose sole job is to defend them. It's all boilerplate. Show your website's FINE PRINT explaining how theyre rebilled (feel free to print using a larger font) and highlight it, make it look like you took great care to put together this package for the bank. Most of them should go away unless you're being really really shady and someone from the bank checks out your website a second time and catches you doing something just plain wrong.
Nothing shady on the upsells, as they are not forced or automatic. They actually add value to the entire course. We do have a dedicated employee whose sole responsibility is to reply to the chargebacks. I have a slight problem in showing the customer received their order based on it being an online course. I do have IP tracking on their logins, but if they do not login at all and still chargeback, I usually lose them because of a lack of verified receipt. I used to physically fulfill and ship things out, but that pretty much took all of the profit away.
If they don't login and chargeback, that is a refund request done poorly. They never took possession of the course.
You should have a refund process in place so refund requests don't become de facto chargebacks. That would reduce your chargebacks and protect your merchant account.
Here is another crazy idea, ASK PEOPLE WHY THEY ARE CHARGING BACK!
Don't assume they are scammers. They might think you are shady, they changed their mind, the course is not as advertised, delivery is poor, logins don't work, your biller name on their statement looks scammy etc
When you assume ...
You should have a refund process in place so refund requests don't become de facto chargebacks. That would reduce your chargebacks and protect your merchant account.
Here is another crazy idea, ASK PEOPLE WHY THEY ARE CHARGING BACK!
Don't assume they are scammers. They might think you are shady, they changed their mind, the course is not as advertised, delivery is poor, logins don't work, your biller name on their statement looks scammy etc
When you assume ...
Is your actual Product/Site name and phone number in the merchant descriptor on the credit card bills? or is it your holding company? That will make a big difference
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