Dealing with chargebacks

You will always have problematic customers (hopefully not too many). But it is important to take everything in proportion. If the percentage of customers charging back is small, such as 0.5% and the service is something digital like an information product, they are not worth the effort.

What is a chargeback

When a customer wants to cancel a payment to a service provider with the credit card company, for example, there is a procedure to fight it from the business side. But the procedure is too time-consuming. This is not limited to credit cards, there for if a customer is charging back there is one of two reasons for it.

 One is that he does not feel he got the service he asked for, and the other is that he is a career charge backer. Sadly there are people out there with nothing better to do with their time then to order everything they see on the net and charge back the payment.

What’s more important to you?

Not getting paid for the service you provided provokes anger. That anger can cause you to waste too much time fighting that chargeback, while you could have been more productive with your time. You could have sent out a new newsletter, interacted with your satisfied customers. In any case, you could have grown your business.

What should you do?

First I would structure a letter to the customer. Something not threatening, asking him or her why they did it. career charge backers will ignore it, but unsatisfied customers will tell you what the problem was.

See if there’s something you can do to help those customers. And make sure to address that matter in future business. Whether it means to change your policy or improve your service.

And finally, discount the dissatisfied customers from the clients who charged back to see what cases were unavoidable. And calculate what percentage they are from your total business.