5 ms·
A good example of thinking outside the box. I didn't think customers who were charging back "37signals" would actually take the trouble of going to "37signals-c
by anuraggoel 18y ago
A good example of thinking outside the box. I didn't think customers who were charging back "37signals" would actually take the trouble of going to "37signals-charge.com", but I guess the numbers prove me wrong.
However, the 30% reduction is 'as a percentage of sales'. Since their sales grew in 2008, maybe more sales, more '37signals' specific marketing, and the fact that they've been around a year longer meant more awareness of the '37signals' brand, which directly led to fewer chargebacks?
- there 18y agothat's assuming that most of their chargebacks were simply because people didn't recognize the charge. how many were because they didn't like the service, didn't get support, or some other reason? with most credit cards, you don't really need to have a good reason to do a chargeback. especially with american express, they side with the customer rather than the vendor. american express sent me some paperwork when i signed up for a merchant account and it basically said when a customer does a chargeback, they refund the money immediately and i would have little or no recourse to debate it.
- anuraggoel 18y agoIf people didn't like their service, wouldn't most of them ask for a refund (which would not be classified as a chargeback)? I believe chargebacks are usually intended for charges that the customer thinks are fraudulent.
- there 18y agoa refund would have to go through 37signals, and they don't give refunds (http://www.37signals.com/refund http://www.37signals.com/refund). a chargeback just avoids the middleman and gets the customer his money back.
- petercooper 18y agoA lot of companies say they have no refund policy in public, but will refund if a customer complains enough or threatens a chargeback (just because it's so annoying to deal with). A company like 37signals needs to say they don't give refunds to deflect complaints regarding if you close your account half way through a month.. "Why don't we get half this month's payment back?" etc, which would be an administrative nightmare.
- boredguy8 18y agoIf prorating your service is an "administrative nightmare" you have issues.
- cedsav 18y agoAmex is actually the only one who settled a dispute in our favor, but that probably doesn't mean much since I usually don't bother to contest chargebacks.