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  1. #1
    Join Date
    Aug 2002
    Hong Kong

    What a customer loses after a chargeback


    what i read in this forum have been "a customer just chargeback and i lose .....", "CC company favors customers in virtually every instance..." and "if you have a dispute wilth your customer regarding billing you should just refund to him to avoid the bloody chargeback..."

    what will a customer lose after a successful chargeback?
    will it hurt his own creditability?
    can a merchant get the chargeback ratio on a customer before decision made on accepting his order?


  2. #2
    Join Date
    Jul 2002
    repeated chargebacks get questionable by the bank, but single or twice not sure what might happen.
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  3. #3
    if you hit a certain % of chargeback your merchant account will be on hold

  4. #4
    Join Date
    Aug 2003
    Chesapeake, VA
    lwknet, in answer to your other question - there is no way to query the # of chargebacks or chargeback ratio that a given cardholder has.

    However, there are many fraud detection and scrubbing services available that can help out in that regard. The best solution is a comprehensive fraud defense process using multiple methods ranging from phone order verifications to IP/BIN-scrubs, negative databases and of course AVS/CVV (configured appropriately for the merchant's needs) and other tools. - Trusted Merchant Account Solutions since 1998
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  5. #5
    Join Date
    Jul 2003
    Castle Pines, CO

    Re: What a customer loses after a chargeback

    Originally posted by lwknet
    can a merchant get the chargeback ratio on a customer before decision made on accepting his order?

    There was actually a system similar to this a few years ago. I do not know if it is still around or not, but if you are interested, I can try to find the name of the company. I met with the COO at a conference once. Apparently this system did some type of calculation on a user's computer. I will admit - it was quite interesting at the time.

    But as CDG recommended - do everything you can possibly do to check that order. And always go with your gut feeling.

  6. #6

  7. #7
    I have heard of EFT / ACH Processors maintaining "negative databases" of customers that have multiple disputes. Basically, chargeback one too many ACH transactions and the consumer ends up in the negative database and sales are automatically rejected. Has anyone heard of anything similar for credit card chargebacks? I wonder, would the card associations even allow it?
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  8. #8
    Join Date
    Feb 2005
    I've heard of a kind of 'ignore list' of bad CC numbers. But it's made by current company, and I've never heard of any database, that contains info from several companies, anyway I can ask our support.

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