4 ms·
I've tonnes of experience with merchant accounts too. But my chargebacks were never more than 2-3%. Most of the time I was selling digital goods. What happened
by zaidf 17y ago
I've tonnes of experience with merchant accounts too. But my chargebacks were never more than 2-3%. Most of the time I was selling digital goods.
What happened was each time someone did a chargeback, I would have to fill in a form to rebut it or accept it. I would always rebut it because I offered a 100% moneyback guarantee, no questions asked. So it did not make sense for anyone to do a chargeback; if they wanted their money back, they only had to ask, not chargeback. As a result, many of my chargebacks got thrown out and I simply refunded.
I think the lesson here is if you are selling physical goods, ESPECIALLY high ticker items, be extra careful. That could mean calling to confirm before shipping the item.
- asb 17y agoI have no experience with billing or merchant accounts. Why would you not just accept the chargebacks if you have a no questions asked moneyback policy anyway?
- immad 17y agoIf you hit a certain level of chargebacks (5%?) then you get penalized with higher fees by the gateway or get removed completely.
- run4yourlives 17y agoI believe there are chargeback fees from most providers. Refunding the money directly saves him this. Also, getting a chance to talk to your customer is never an opportunity one should pass up.
- zaidf 17y agoWhat Imamd said. In addition, each chargeback costs you an additional fee, in my case $35. So my total loss would be: the cost of the product(usually under 20 bucks) PLUS $35 chargeback "fine".