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Thread: Chargebacks?

  1. #1
    Join Date
    Jul 2005
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    45

    Chargebacks?

    Has anyone ever sold web hosting and after the subscription plan is over the client calls up his creditcard company and says it was a fraudulent payment(works if a creditcard was used to pay by paypal not an actual account)?

  2. #2
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    May 2005
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    Sydney, Australia
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    No... but surely the credit card company has a responsibility to investigate properly. What length of time are you talking about between payment and fulfillment of the subscription?

  3. #3
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    Mar 2002
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    I had a time that a clients wife did not know what weberz was (when we owned weberz.com) so she initiated a chargeback... the husband freaked out when I mentioned it to him. I got a thousand and one apologies for that one.

    Tracy Phillips

  4. #4
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    May 2005
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    ^^ It's amazing how often that happens ... you'd think people would check with their spouse first.

  5. #5
    Join Date
    Dec 2003
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    Miami, FL
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    A few times I had customers calling in asking what we do, etc saying she saw a charge on her CC from our company (When we charge them, our name & 800 # shows up on their statement). We looked the account up her # and she said "oh thats my son" or "oh my husband" or "ohhh yea I haven't used the acct, can get I a refund"?

  6. #6
    Join Date
    Jul 2005
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    45
    Originally posted by -T{H}R-
    No... but surely the credit card company has a responsibility to investigate properly. What length of time are you talking about between payment and fulfillment of the subscription?
    Near the end so they can get a full free month. I don't think Mastercard or Visa has the time to investigate over 20$...

  7. #7
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    May 2005
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    Like you don't have better things to worry about ... not only is there the cost of providing the service that you now need to cover but also the cost of the extra administration.

    Some people have no morals.

  8. #8
    Join Date
    Dec 2002
    Location
    The Shadows
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    Not one chargeback as of yet... Couple of refunds for purchases I later deem fraudulent(I review everything)
    Dan Sheppard ~ Freelance whatever

  9. #9
    Chargebacks should be infrequent and payed special attention to. Any chargeback "should be" valid (meaning the customer didn't sign up with you and it was a bogus account).

    If the customer is a valid customer, then either:

    1. You didn't properly introduce yourself (in the case of customers calling to find out who you are) or the company name on the charge statement doesn't match your "site branding". In this case, you need to review how you are communicating with your customers/prospects.

    or

    2. You didn't meet their expectations and you need to review the services you are offering for any misleading information.

    In any case, you need to investigate so chargebacks are not the rule.....but the exeption. Treat them like a strange mans voice on your girlfriends answering machine.
    Kenneth R Taylor
    Inet7 Internet Serivces
    Web & Application Hosting Services
    http://www.inet7.com

  10. #10
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    Apr 2005
    Location
    San Francisco, CA
    Posts
    1,029

    Re: Chargebacks?

    From every 100 customers - 2-5 issues with "fraudulent orders" - even if we do phone verifications - 50% of customers said they "forgot" our company name - another 50% change story to "Not as advertised" - this is part of the business

    Originally posted by webrat3r
    Has anyone ever sold web hosting and after the subscription plan is over the client calls up his creditcard company and says it was a fraudulent payment(works if a creditcard was used to pay by paypal not an actual account)?

  11. #11
    Join Date
    Aug 2004
    Posts
    1,461
    Originally posted by Rob83
    A few times I had customers calling in asking what we do, etc saying she saw a charge on her CC from our company (When we charge them, our name & 800 # shows up on their statement). We looked the account up her # and she said "oh thats my son" or "oh my husband" or "ohhh yea I haven't used the acct, can get I a refund"?
    It's the same with spam complaints. If you send an email to 10.000 people you will get a spam complaint even if they have confirmed their subscription 100 times.

  12. #12
    Join Date
    Feb 2004
    Posts
    390
    Yes some people do order, use the service, and then chargeback saying they did not place the order (even though they really did) so that they can get free service. Pisses me off.

  13. #13

    Re: Re: Chargebacks?

    Originally posted by steven-v
    From every 100 customers - 2-5 issues with "fraudulent orders" - even if we do phone verifications - 50% of customers said they "forgot" our company name - another 50% change story to "Not as advertised" - this is part of the business

    WOW! 2-5% chargebacks? WOW! We're looking at a fraction of a percent. Your customers don't even know who you are....well, at least 2-5% of them don't. Shocking.
    Kenneth R Taylor
    Inet7 Internet Serivces
    Web & Application Hosting Services
    http://www.inet7.com

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