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  1. #1
    Join Date
    Nov 2000

    Chargeback Threat

    After a customer updates their credit card details they were charged for multiple months at once since the agreements was in arrears due to the failed previous transactions, as is the way WorldPay and Paysystems work. The customer then threatens chargeback, fraud etc.. and says his bank will do it etc.., we explain to the customer that this is the way WorldPay work and provide full transaction details/dates. We also offer to refund half of the transactions as a gesture of goodwill. The customers say 'Yes' to that, I keep the impression he still far from happy by the abruptness of the message.

    We then try to follow up twice, on seperate days to see if the matter has been resolved to his satisifcation, no response, more followup, more waiting, no response, just ignored.

    Next we get an email from WorldPay that the customer has requested the cancellation of the WorldPay agreement. No prior e-mails or messages to us.

    I've seen this before, and after the recent blast of fraud and chargebacks we've received I decide just to go ahead and refund all his transactions and cancel his site.

    MattF - Since the start... twitter / github

  2. #2
    Join Date
    Feb 2002

    Re: Chargeback Threat

    Originally posted by MattF
    . . . Views?
    Yep, I know exactly what you're saying.

    If I ever reenter the hosting market, it will only be local hosting and I probably won't be accepting credit cards. heh. Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  3. #3
    Join Date
    Jan 2004
    Orlando, FL
    My experiance with credit card merchant services shows me that unless the customer claims that the credit card was fraudulently charged, they will protect you against charge back happy customers. You should be able to dispute the chargeback by attacing your tos to the dispute. If they feel as though you had not done anything against your agreement by charging the card they will reverse the chargebacks.


  4. #4
    Join Date
    Feb 2003
    United Kingdom
    Yep, I go along with what Joel said.

    We use WP too, they're particularly good in situations like this. Some processors refund a payment before the customer can even say "chargeback" - at least WP give merchants the opportunity to fight their corner.


  5. #5
    Join Date
    Mar 2003
    Duluth MN
    I'm glad I have not yet had any chargeback cases yet. I use for my payment gateway and E-OnlineData for my merchant account. When customers have previously had disputes about a charge (going 16gb over their bandwidth limit at a couple bucks per gb), we would talk it over, and come to an agreement, then I would credit their account (not their card) for the amount, so their next month's bill will be less.

  6. #6
    Join Date
    Nov 2002
    The customer wasn't paying and you charged them what they owed once they updated their credit card details, and as a gesture of goodfaith you offered not to charge them the full amount they owed!? I think you're being far too leniant.

    I would fight the chargeback request, and I'd also ask the client to find a new company to deal with....because some customers just aren't worth the trouble.

  7. #7
    Sometimes it's better just to keep life easier and do exactly as was done. Sure, the customer could be in the wrong, but unless the actual cost of losses is significant, then you could end up tying far too much of your busniess focus on a single customer, at the expense of others. For small virtual hosting customers it's probably best to just let go and swear loudly to yourself - but if we're talking about significant arrears, such as use of dedicated servers, then it could be worth pursuing legal avenues - even if it's just the threat of legal action.

  8. #8
    I agree with I, Brian. It really depends on the amount of money involved. I would take the amount of time I would have to spend dealing with an issue, weigh that against what my time is worth and the least expensive resolution would be the way to go more times than not...

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