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Thread: A way around chargebacks?
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05-03-2004, 06:30 PM #1Web Hosting Master
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A way around chargebacks?
If i were to take clients login info and a flash cpanel tutorial, throw them on cd and post them insured delivery, will i be able to use the delivery details as proof of service?
Will this hold up with cases with paypal etc?
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05-03-2004, 06:50 PM #2Web Hosting Master
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I would think so being that you are now delivering a tangible product and can prove it. Make sure that the package requires a signature, and deliver ONLY to the PayPal verified address and you should be okay.
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05-03-2004, 06:54 PM #3Web Hosting Master
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Right, cos im planning on sending a CD that has everything needed to start up
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05-03-2004, 06:56 PM #4Web Hosting Master
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Yup, of course, this is only my opinion. I don't get to make those kinds of decisions in real life
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05-03-2004, 07:07 PM #5Texan at Heart
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The client could also say he / she was not happy with the services that you provided.
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05-03-2004, 07:10 PM #6Web Hosting Master
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Suppose, but its one less excuse spammers/fraudsters could use.
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05-03-2004, 09:11 PM #7The E-Commerce Answer Guy
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- Could it HURT to do that? No. Couldn't hurt.
- Would it HELP to do that? Sure... it could help in certain cases, but not all situations. It wouldn't help with "not delivered as promised", "unauthorized charge" or several other reason codes.
Plus the client could still claim that even though it was mailed to them, the service itself didn't work.
- Is it WORTH doing the above strategy? It depends. Let's say your cost for a CD, printing & mailing out via insured mail is $5.00. Let's say you do this for 1,000 customers and they each pay $15/month.
Your cost is $5,000 for the CD & mailings. Now let's say you have a chargeback ratio of 0.50%. That means out of 1,000 customers, you'd have 5 chargebacks. Let's say a chargeback penalty fee of $30 each and a sales ticket size of $15 each.
That's only 5 x ($30 + $15) = $225.
So you've spent $4,000 to reduce the likelihood (and not necessarily 100% prevent) $225 worth of chargeback costs.
Thus... I'm not sure if the costs would justify the benefits of it from that standpoint.CDGcommerce.com - Trusted Merchant Account Solutions since 1998
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05-03-2004, 09:11 PM #8The E-Commerce Answer Guy
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(This was an accidental duplicate post.)
MODS - please delete this dupe if you can.CDGcommerce.com - Trusted Merchant Account Solutions since 1998
Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
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05-03-2004, 10:42 PM #9Web Hosting Master
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In many places, Canada for example, selling a tangible product instead of simply a service means you have to collect and remit more/different taxes.
For example, in Ontario, web site design is not normally subject to the provincial sales tax... BUT... if you send your client a backup CD of the site, paper printout or anything tangible it becomes taxable!Current Project:
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05-11-2004, 02:15 AM #10WHT Addict
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same address
You should also use the same address for delivery as the billing address for added protection.