Home – New Forums Selling online Chargeback

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  • #997196
    Trent Tran
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    Hi all
    This is about chargeback questions.
    Scenario is below:

    • 1) a customer placed 3 orders online, 1 after another on 9, 22 , 26 within a month
    • 2) happy with products from 1st order, hence the 2nd and 3rd one
    • 3) somewhere along the line, the goods are partially broken. Not sure whose fault. Pictures are unclear from buyer
    • 4) not accept offered solutions but want a full refund ($4000 worth) 5) replacement is not accepted either, second and third order are offered at 80% refund which are rejected These items are not refundable stated in website terms and conditions. They have to tick the box before purchasing The buyer is not in Australia and the Credit card merchant is Stripe
    • 5)Trackings are available and buyer received it in good shape. If the buyer lodges a chargeback, will the bank consider these? Please let me know your opinions if you experienced this before?

    Chargeback usually occurred if the buyer does not know or recognise the transaction. In this case, it is more about the goods disputes. Do you think I have any grounds to fight here (I do)?

    #1210870
    Corey
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    • Total posts: 568
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    best to get in contact with Stripe and ask the best way forward.

    Cheers
    Corey

    #1210871
    arrowwise
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    Unfortunately in most cases the banks are on the side of the customer and they have full right to do the charge-back honestly or otherwise.

    As said Stripe may be able to assist to mediate or mitigate loss.

    Failing all that the best you can do is reduce it happening again by way of strengthening your payment policies and procedures.

    For example, don’t accept credit cards beyond a certain value or type of customer.
    For higher priced orders have further legal documents in place between the customer and to protect you from chargebacks, and somewhat cover you further or give you the right to recover losses.

    I ran an online shop years ago with real time credit card processing and worldwide shipping. Dodgey orders and chargebacks were rampant at one stage. By stopping the real time processing and vetting the orders further, this strategy mitigated this loss significantly.

    Real time processing of higher value goods with little fraud protection is basically setitng yourself up for easy robbery.

    #1210872
    Anonymous
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    We’ve had more than our share of charge-backs due to no fault of our own. I think sometimes we even see a spike in charge-backs after the likes of an ill-informed Current Affair story gets a run, telling the ‘viewers’ they have every right to claim a charge-back. Our experience is that no matter what our policies state, if the card holder claims a charge-back, the bank will process in the the card-holders favour every time! The scenario we had a few weeks back was a great example of how the system can work against business:

    1. Card-holder contacted back requesting a ‘please explain’ on a transaction they saw on the statement.

    2. Bank contacted us (the Merchant) with a ‘please explain.

    3. We provided the bank with proof of purchase and authority the charge to card-holder. We also contacted the customer directly to explain the transaction to them.

    4. The customer came back to us very apologetic. They advised that they had contacted their bank to cancel the charge-back, and their bank informed them to ask us to re-submit the transaction, rather than cancel the charge-back.

    5. The initial charge-back against us was processed by the bank, and we were hit with the $25 bank charge.

    Our bank manager wonders why I label his bank our biggest enemy in business!

    They’re a law unto themselves.

    We just build their costs into the cost of doing business. We don’t have much of a choice.

    Sorry to turn a ‘charge-back’ question into a bit of ‘bank bashing’ but the two go hand-on-hand in our experiences.

    #1210874
    Trent Tran
    Participant
    • Total posts: 166
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    After 6 months,
    It is rare but justice is with me. Have some faith people ;) [IMG]http://[/img]UaUWdGt.jpg

    1) Keep all communication email, especially the agreement between you and the buyer

    2) For a large order amount, pdf the tracking from courier page as some couriers only make it available for 3 months which in this case, I might have no evidence

    3) Document it well and get someone to read your case if it makes sense to him/her.

    4) Be in contact with your merchant, ask for advise and how to back yourself up against the claim

    5) Be patient as it does take time. Our pocket got a hole for 6 months.

    Good luck

    UaUWdGt.jpg

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