5 ms·

We are a small business that provides a service. In business more than 30 years. We never win our disputes dispite providing mountains of evidence. At this poin

We are a small business that provides a service. In business more than 30 years. We never win our disputes dispite providing mountains of evidence. At this point we dont even respond to them we simply file a lawsuit and add all our court fees on top. We have won 100% of our cases. 100% while presenting literally the same evidence we would in the dispute process. Banks and the credit card processors are accesories to fraud plain and simple. Either a class action lawsuit needs to happen or legistation does.

chrischen 4y ago
How much is your transaction size to be able to make a law suit worth it?
joshstrange 4y ago
If this was my money they were charging back I'm probably steal this idea. They amount isn't even that much (like less than $200 total for hundreds of thousands coming in) but it's the principal of the thing and it just makes me mad that people are so selfish and scamming small companies.
myroon5 4y ago
To clarify, do you file a lawsuit against the financial institution or the individuals who requested chargebacks?
obblekk 4y ago
Ironically, we are in the business of providing people court documents which they have to sign / notarize, and we still get this kind of chargeback behavior. In our case though, we've gotten quite good at writing these dispute letters and win more than 50% of them. Not perfect but ok. At least, it was until this pricing change which will cost us.
simonhamp 4y ago
They absolutely are accessories, but mostly by inaction. They probably have insurance that covers them so it's generally just not worth it to get involved - just approve for the claimant and move on. In my last job, the finance team basically didn't bother investigating or challenging chargebacks. The solution was to employ anti-fraud ML services (we used Ravelin) to prevent transactions that were at high risk of chargeback. It was surprisingly effective, but expensive. Sadly, still cheaper than the potential cost of the chargebacks.

chrischen 4y ago

How much is your transaction size to be able to make a law suit worth it?

joshstrange 4y ago

If this was my money they were charging back I'm probably steal this idea. They amount isn't even that much (like less than $200 total for hundreds of thousands coming in) but it's the principal of the thing and it just makes me mad that people are so selfish and scamming small companies.

myroon5 4y ago

To clarify, do you file a lawsuit against the financial institution or the individuals who requested chargebacks?

obblekk 4y ago

Ironically, we are in the business of providing people court documents which they have to sign / notarize, and we still get this kind of chargeback behavior. In our case though, we've gotten quite good at writing these dispute letters and win more than 50% of them. Not perfect but ok. At least, it was until this pricing change which will cost us.

simonhamp 4y ago

They absolutely are accessories, but mostly by inaction. They probably have insurance that covers them so it's generally just not worth it to get involved - just approve for the claimant and move on. In my last job, the finance team basically didn't bother investigating or challenging chargebacks. The solution was to employ anti-fraud ML services (we used Ravelin) to prevent transactions that were at high risk of chargeback. It was surprisingly effective, but expensive. Sadly, still cheaper than the potential cost of the chargebacks.