You've heard Karisse explain how to reduce the rate of innocent chargebacks and how to avoid making yourself an easy target for fraudsters, but what do you do if it's already too late, they've taken your money and your product, and you want it back?
Things to take away from this episode.
Service related incidents
- 2:14 Study the reason code attached to service related chargebacks. Know what you’re dealing with before getting into a claim with a customer, and don’t let yourself be caught off-guard. So long as the reason code given is accurate, having strategies to deal with the most common ones will save you time and money.
- 2:40 Dig into your data. Make your own case, the same way you would as a lawyer, based around the reason code given. Use their own shopping habits and freely given information as proof of continued and intended behaviour, or to contradict any claims they may make to the contrary. Trust what the data is telling you, and make others trust it as well, then link it back to that specific chargeback reason code given.
- 3:08 Don't issue refunds unless necessary. It may seem easy to just avoid the conflict and issue the refund, but this is a mistake that may cost you unnecessary charge backs for innocent mistakes or impatient customers, or see you become intentionally targeted as an easy mark at the hands of online scammers. Only accept the chargeback when it truly is the fairest option for your consumer
Fraud related incidents
All you have to do when it comes to dismissing chargebacks in cases when you suspect fraud or a customer claims it, legally speaking, is prove that the card holder asking for a chargeback did participate in the transaction, and all of that data is already safe in your hands. It’s just a matter of how you decide to use it.
- 4:46 Don’t just accept a claim of fraud. Just as before, trust your data, even if it’s saying everything is business as usual while a customer is claiming a recent purchase wasn’t made by them. If the package hasn’t been diverted, the payment was verified, and their contact info all tracks, call their bluff.
- 6:00 Know the rules and regulations. Again, knowing is half the battle, and that includes your responsibilities to the client, theirs to you, and both of your to the credit companies. Know your rights, know what is expected of you, and know how these rules will be used against you
- 6:50 Hire a third party security options or build an in-house team. Also previously stated, hire security and fraud analysts, do some shopping around yourself for who can provide the best protection for your products and profits, and see what you can do for yourself without spending even more
- 9:00 Beware of chargeback management companies. They may seem like the obvious answer for getting your money back, but frequently they’re too interested in their fee, ignore the context of a claim, and have cost others much more than a chargeback ever would have, says Karisse. Do your research, and go with a company that is transparent in how they work and what they do for you.
- 13:00 Additional legal options. If all else fails, consider action like third party collections or small claims court to recoup your money. Litigation is a nasty and expensive business, but if you feel you have a clear cut case, make it yourself and hope for the best
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