charge backs - ecommerce is dead

adamuk18 · Feb 13, 2019

I am fedup of charges backs, every week another new one and always expensive.

We use squareup - how are they letting these through. I just checked recent one for £82 and the shipping and billing are different but squareup have let it through.

I am sick of it. time to give up ecommerce just not worth it.

1. china send bad quality stuff
2. facebook costs to high selling ecommerce
3. charge backs

anybody have a rope?

Nico Albrecht · Feb 13, 2019

Just for curiosity, what are the charge back reason codes you get from your payment provider? Let's start there.

parkingandsecurity · Feb 13, 2019

Why not manually verify the shipping and billing address are the same? Surely you can set a fraud score somewhere in your backoffice to at least mark them as pending ?

adamuk18 · Feb 13, 2019

I cant see a code just 'no knowledge of charge'

i guess we could remove the option to have a seperate shipping address

Nico Albrecht · Feb 13, 2019

Most likely. Fraud / No Authorization chargebacks account for 52 percent of all disputes. Do you use 3d secure during checkout. Time to turn it on.

arnydnxluk · Feb 13, 2019

Are you running your own fraud checks on orders? Something such as separate billing and shipping addresses, if considered to be an issue, should be something you pick up on.

Agree with the above, you need to make sure 3D Secure is forced on all transactions where possible to put a stop to at least some of your chargebacks.

adamuk18 · Feb 13, 2019

I spoke to them before on the phone and they said they carry out security checks... not sure on the 3d secure though. Think I might just ban sending to a seperate address.

I think tbh though I have had enough of it all

Nico Albrecht · Feb 13, 2019

Also shipping and billing address matching I only get with 50% of my customers to be honest. Specially with business credit cards where they have more than 1 office.
you mentioned poor Chinese quality, are you selling the faulty stock on? Could be one of the reasons. What products are you selling?

Switch to stripe with radar fraud where you can set custom rules for blocking payments.

Mr D · Feb 13, 2019

Ecommerce is dead?
Heard that many times in past 20 odd years. Yet to see it - sales are up on last year for same period so I'll just keep muddling along.

adamuk18 · Feb 13, 2019

We sell pet products and no we are not selling on the faulty stock. We don't get issues with paypal orders its always the card payments.

What some people will order when using dodgey cards its quite strange really

Mr D · Feb 13, 2019

adamuk18 said:
We sell pet products and no we are not selling on the faulty stock. We don't get issues with paypal orders its always the card payments.

What some people will order when using dodgey cards its quite strange really

Yes, and email from paypal saying don't send the item a week after it was delivered to the buyer doesn't help...
Last one of those we lost 85p on including postage we couldn't claim back.

fisicx · Feb 14, 2019

@adamuk18
1. china send bad quality stuff - find a better supplier
2. facebook costs to high selling ecommerce - don't sell through facebook
3. charge backs - use 3D secure

Are you dropshipping or using a fulfillment house? Are you able to confirm card/billing/shipping before dispatch?

But it looks like squareup are the cause of a lot of your problems. Why not just switch to a different provider.

adamuk18 · Feb 16, 2019

We have our products manufactured for us and store in our own warehouse.

lesliedocherty · Feb 16, 2019

We shipped over 10k orders last year, only had 1 attempted chargeback, which we defended and won.

But, we have 3D secure, if your transaction is iffy, we email you and make you contact your credit card company for the 6 digit approval code, only 3 customers cancelled the transaction at this point, 5 never replied (dodgy) and we refunded.

Nochexman · Feb 21, 2019

adamuk18 said:
I am fedup of charges backs, every week another new one and always expensive.

We use squareup - how are they letting these through.

If you are getting one chargeback every week you are doing something wrong. As others have said using 3DSecure should remove most of the problem. But, if you have had so many you need to understand whether there are any recurring reasons.

Also, do you make it easy enough to get refunds? How contactable are you?

This sort of thing should not be a reason to throw in the towel - it is all fixable. Good luck.

jrwatson · Mar 29, 2019

You need better customer service in that case.

Taobao agent · Apr 8, 2019

1. china send bad quality stuff---there are also numbers of manufactories can make high-quality products.
2. facebook costs to high selling ecommerce---spend the money in the right way.
3. charge backs---not 100% chargeback, good quality, and service make low chargeback rates.

DontAsk · Apr 8, 2019

adamuk18 said:
We don't get issues with paypal orders its always the card payments.

So take all payments through PayPal. Customers do not need a PayPal account to pay you with a Credit card. If things are as bad as you say it sounds like you will be better off even with the PayPal fees.

I have NEVER suffered a chargeback, as such. I've had a few trigger happy customers raise disputes before giving me a chance to resolve the issue.

jrwatson said:
You need better customer service in that case.

Better class of customers needed, I would say.

Mr D · Apr 8, 2019

DontAsk said:
So take all payments through PayPal. Customers do not need a PayPal account to pay you with a Credit card. If things are as bad as you say it sounds like you will be better off even with the PayPal fees.

I have NEVER suffered a chargeback, as such. I've had a few trigger happy customers raise disputes before giving me a chance to resolve the issue.

Better class of customers needed, I would say.

Have had paypal chargebacks when I didn't do as the customer demanded. But they are rare.
Less than one in 10,000 maybe.
That kind of risk can be factored into the pricing without too much trouble.

khushy · Apr 9, 2019

I am not trying to be smug and can imagine your pain - chargebacks can be symptom of your business model, your attitude towards customers and ultimately the products you sell - sell sh*t and sh*t happens - maybe its time to change your products and your business model - if you are indeed so sick of it.

Business is simple and eCommerce even simpler - keep it simple and concentrate on QUALITY!

Price looses every single time.

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