Advice on how to deal with a customer who is threatening a chargeback?

Discussion in 'Ecommerce Forum' started by MrsMonty, Apr 8, 2019.

  1. MrsMonty

    MrsMonty UKBF Newcomer Free Member

    1 1
    A customer sent a message to my business' Facebook page and asked how he could place an order. I told him that we were out of stock but he said his wife was unwell and could really do with my product as soon as possible, so I explained that I could send it to him sooner from the US, however at the time I didn't explain that he would have to pay customs tax.

    He was sent the product and contacted me explaining that it wasn't working out and that he wanted a refund. My business is still relatively new and I have been experiencing some issues with people returning goods because my returns address was a PO BOX (and I know very well now that couriers don't deliver to PO BOXes).

    Long story short, the customer is now irate claiming that he has had to pay to return the product (which is approx. £6 and it's in my returns policy that the customer is responsible for returns) AND for the customs tax for the shipment of the product from the US to the UK.

    He's refusing to pay the customs tax and said that unless my business covers it, he will seek a chargeback from his card company.

    I'm happy to refund the customer, however, given it cost me $100 to ship the product in the first place, I'm not keen to cover the customs fee.

    If I issue a full refund to the customer for the price of the product will he still be able to claim a chargeback for the customs fee? Surely they are separate things?
    Posted: Apr 8, 2019 By: MrsMonty Member since: Apr 8, 2019
  2. MBE2017

    MBE2017 UKBF Enthusiast Free Member

    929 243
    In your position I would credit in full and move on. It is more important to concentrate on new sales, and learn from this experience on how to word such offers in the future.

    The time spent arguing about this is likely to be a lot more costly than the actual cost of doing so, learn from it.
    Posted: Apr 9, 2019 By: MBE2017 Member since: Feb 16, 2017

    I_DO_MARKETING UKBF Regular Free Member

    393 104
    I second the motion.

    You are Business MarioCart. You are foot-flat-to-the-floor zooming around the business track. If you stop to go back and pick up every lost star you will be overtaken by your competitors.
    Posted: Apr 9, 2019 By: I_DO_MARKETING Member since: Oct 24, 2015
  4. Jay K

    Jay K UKBF Newcomer Free Member

    7 0
    A Chargeback will not be able to claim anything more than the payment they made to you initially. If you refund it they cannot chargeback.

    If it is clear on your website that they have to pay customs tax then a charge back is likely to fail if they have accepted the product and already paid the fee. You just present the shipping information and your communications to the bank when an issue is raised.

    If your business is new best to find a resolution with the customer that is cheapest for you. Also consider that this person is likely to review you online which as a new business you want to manage your rep.
    Posted: Apr 9, 2019 By: Jay K Member since: Jan 31, 2019
  5. paulears

    paulears UKBF Big Shot Full Member

    3,908 971
    You really need to have a think about how you would react in these circumstance. If I go to a UK website and see something I want, then if I see how much it is, and click to buy and pay. I expect it delivered to my address. I don't expect to get a bill for import duty and VAT. If this is is likely to happen because the goods are being drop shipped from China or the US, then you MUST for ethical reasons tell them. You can hide your refund policy or make it positive - Those, statements that say "We're sure you will like this item, but in the event you change your mind within X days, please return it to us for a full refund (excluding return postage)" That sounds good. Drop shipping is fraught with grief in these areas, so you should really have seen this coming.

    PO Boxes are big turn-offs for so many reasons. If your t's and c's mention returns then how come you tried to hide your address - which needs to be on your web site for legal reasons anyway.
    Posted: Apr 9, 2019 By: paulears Member since: Jan 7, 2015