I don’t just show the emails but I
1. draw arrows on the screenshots 2. Upload audit log showing usage 3. Write a short summary that states they intend to continue using the product (ie there will be future transactions)
What are effective ways of fighting chargeback fraud?
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Re: What are effective ways of fighting chargeback fraud?
#12Have you considered that making payments final is one of the solutions to this?
And when a customer wishes to use a payment method that makes chargebacks possible, let them pay a (let’s say 20%) premium?
Re: What are effective ways of fighting chargeback fraud?
#13> Have responsive customer service. Some potential chargebacks can be prevented simply by being very accessible. Analyze your UX to see that customers have everything they need to understand how to get in touch with you easily in all emails. Even so, some percentage of customers will just do a chargeback and never contact you.
> Make sure to include your service name in the bill. Some chargebacks happen because a company operates off of a website like "example.com" but then does the credit card billing through "ABC Jones Incorporated". It's very easy to forget a service if you see the wrong thing on your credit card statement.
> This might be a little off-putting to some potential customers, but if part of your business involves having a live video chat with them, it seems like there might be a way to get fairly convincing proof that they used it somewhere in the process of a call. Even so, you'll lose some percentage of chargebacks just because credit cards generally side with their own customers.
> Your business caters to people who are looking for work and are probably a little financially desperate and can't afford an immediate hit to their wallet. Understand that this might mean more chargebacks than normal, partially out of desperation. And consider if this is an opportunity in disguise: maybe you can offer a free service but then figure out a way to get paid more once they are employed?
> Consider if offering payment through some unchargebackable options such as crypto might be feasible.
Re: What are effective ways of fighting chargeback fraud?
#14Earlier quoted context omitted.
What does "Pull the other one" mean in reply to "forgot they used the service"?
pull the other one INFORMAL•BRITISH used to express a suspicion that one is being deceived or teased. " Your boat was sunk by a swordfish? Pull the other one! "
It's common in the US, too. I think that the history is:
"Pulling your leg" means that someone is deceiving you (either playfully or spitefully).
"Pull the other one" means that someone pulled your leg, and you are telling them that you noticed by informing them that you have another leg that can be pulled.
Re: What are effective ways of fighting chargeback fraud?
#15Chargebacks are a cost of doing business. Letting the price reflect those costs is the simplest thing that might work. Other pricing strategies like subscriptions and packages might also mitigate the cost of chargebacks. Winning chargebacks is the most complicated thing that might work. Good luck.
Hahah yeah, I will (feels a bit cynical but maybe practical) raise all prices by 3-4% to compensate for this cost. Won't packages increase the risk meaningfully though? It's actually something I've hesitated rolling out because of exactly this risk eg. 5 transactions for 100$ where 1 of them gets a chargeback is a much easier hit to bear than 1 trasaction for 500$ getting the hit? I guess from a chargeback rate "%" p…
If you double your price, then fighting chargebacks is less necessary for survival.
I mean think of chargebacks like a money back guarantee and the price as a way to offer that value to your customers.
Heck you could offer a money back guarantee as a way of segmenting the market.
Then your customers might talk to you rather than their credit card company. And your chargebacks go down. You’re still out the money, but your relationship is stronger. I mean, contesting a chargeback isn’t doesn’t delight anyone. Including you.
Raising prices is better than reducing costs. Always.
Re: What are effective ways of fighting chargeback fraud?
#16I don’t just show the emails but I 1. draw arrows on the screenshots 2. Upload audit log showing usage 3. Write a short summary that states they intend to continue using the product (ie there will be future transactions)
(1) is new, will do that too going forward, makes a lot of sense.
(3) might make sense for subscriptions, doesn't work too well for transactions regretfully.