If there is one word most online marketers quiver at the sound of, it is chargebacks. A chargeback is a disagreement over a charge - usually an unauthorized or fraudulent charge between the customer and the company. The merchant must pay back the complete amount along with any card charges. This amount is automatically deducted from your store account. There are 3 main issues about chargebacks that concern the merchant:

1. They lose the payment as well as whatever inventory was shipped

2. The charges associated with every chargeback are between $15 to $25, and probably the worst thing is…

3. Chargebacks do not look good and you could lose your merchant account which can destroy your home based business for a long time.

Merchant services are pretty picky; they do not just hand out accounts to any person.

The purchaser could either be discontented with the product, or there could be a duplicate order, or it might be crime. No matter what the reason may be , it is crucial to your online business to keep chargebacks as small as possible. One way to stop chargebacks is to stop fraudulent orders by checking to make sure the order seems legit. This can mean you may have to call each purchaser to approve the order. You do not need to accept an order if it would appear fraudulent. Be suspicious, because in the final analysis, receiving too many chargebacks will damage your profit line.

If, on the other hand, your customer is simply dissatisfied with the product, give them a call and send them an email. Ask them what it is they did not like about the product. Ask them if there is anything you can do for them to satisfy them. If they continue to appear loath to drop the chargeback, your last resort is usually to ask them if they would not mind dropping the chargeback and you can offer them a full refund. The general public would not mind this option. You’ll find a easy telephone call to the upset customer may very well turn things round in your favor.

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This entry was posted on Monday, August 30th, 2010 at 11:18 pm and is filed under Online Business, Promotion and Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.