Sorry guys .... this one requires a “TREEN SERMON” ......... WARNING......... it’s very boring!
When you receive a chargeback it does not automatically mean that the transaction is fraudulent or the customer has refused to pay.
A bank will present a chargeback to a transaction that has a data mismatch, questionable legitimacy or a payment dispute with the card holder. As they are “in charge” of the money involved in any transaction the first thing they do is take it back. It is up to you then to submit as much evidence as possible regarding the transaction ........... if you don’t bother they won’t chase you ........ they’ve got their money back ....... it’s up to you to present a “case” for why you should get the money! It may just be a small inconsistency in data that gives them the right to chargeback. Sending all the info related to the transaction may clear this up and you’ll get paid.
Collect as much information about the transaction as possible and write a cover letter with any documentation.
There is no guarantee that you will get your money but that’s the system and you have to follow it if faced with this horrible situation.
I’ve had a couple of chargebacks in my time but always ended up with the dosh in the end.
Prevention is always better than cure! If you follow all the procedures you could still end up with a chargeback but the more you cover your back the less chance you’ll have of getting caught. Always enter the customer post-code numbers and door number if they have one. If you do this the transaction is referred to the issuing bank/card company and you will receive a “data match” if the details are correct. It will not authorize if the card holder does not have sufficient funds or if the card has been reported stolen to the issuing bank. It takes a bit of time for stolen card info to reach the merchant services computers but the issuing bank will know immediately.
The other safe guard to practice is “action on suspicion”. If you are the slightest bit dubious put your own precautions in to practice. Dodgy purchases generally have their signs! Find an excuse to phone the customer back ...... if you can’t contact them DON”T do the order. If you do decide to deliver type out a form for the recipient to sign and check that they are who they say they are ........ no one legitimate will mind and you can pass it off as standard procedure ............ NEVER EVER leave the delivery with a third party or anywhere unattended ........ especially if requested to do so by a dubious sender.
None of these things will completely eliminate the risk of a a chargeback but they will definitely shorten the odds.
Hope this helps
