charge backs - ecommerce is dead

Discussion in 'Ecommerce Forum' started by adamuk18, Feb 13, 2019.

  1. adamuk18

    adamuk18 UKBF Contributor Free Member

    96 7
    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?
     
    Posted: Feb 13, 2019 By: adamuk18 Member since: Oct 2, 2018
    #1
  2. Nico Albrecht

    Nico Albrecht UKBF Enthusiast Full Member - Verified Business

    519 78
    Just for curiosity, what are the charge back reason codes you get from your payment provider? Let's start there.
     
    Posted: Feb 13, 2019 By: Nico Albrecht Member since: May 2, 2017
    #2
  3. parkingandsecurity

    parkingandsecurity UKBF Regular Full Member

    186 25
    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 ?
     
    Posted: Feb 13, 2019 By: parkingandsecurity Member since: Sep 7, 2018
    #3
  4. adamuk18

    adamuk18 UKBF Contributor Free Member

    96 7
    I cant see a code just 'no knowledge of charge'

    i guess we could remove the option to have a seperate shipping address
     
    Posted: Feb 13, 2019 By: adamuk18 Member since: Oct 2, 2018
    #4
  5. Nico Albrecht

    Nico Albrecht UKBF Enthusiast Full Member - Verified Business

    519 78
    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.
     
    Posted: Feb 13, 2019 By: Nico Albrecht Member since: May 2, 2017
    #5
  6. Mike Hayes

    Mike Hayes UKBF Enthusiast Free Member

    954 234
    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.
     
    Posted: Feb 13, 2019 By: Mike Hayes Member since: Jan 7, 2016
    #6
  7. adamuk18

    adamuk18 UKBF Contributor Free Member

    96 7
    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
     
    Posted: Feb 13, 2019 By: adamuk18 Member since: Oct 2, 2018
    #7
  8. Nico Albrecht

    Nico Albrecht UKBF Enthusiast Full Member - Verified Business

    519 78
    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.
     
    Last edited: Feb 13, 2019
    Posted: Feb 13, 2019 By: Nico Albrecht Member since: May 2, 2017
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    14,921 1,630
    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.
     
    Posted: Feb 13, 2019 By: Mr D Member since: Feb 12, 2017
    #9
  10. adamuk18

    adamuk18 UKBF Contributor Free Member

    96 7
    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
     
    Posted: Feb 13, 2019 By: adamuk18 Member since: Oct 2, 2018
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    14,921 1,630
    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.
     
    Posted: Feb 13, 2019 By: Mr D Member since: Feb 12, 2017
    #11
  12. fisicx

    fisicx It's Major Clanger! Staff Member

    30,368 8,923
    @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.
     
    Posted: Feb 14, 2019 By: fisicx Member since: Sep 12, 2006
    #12
  13. adamuk18

    adamuk18 UKBF Contributor Free Member

    96 7
    We have our products manufactured for us and store in our own warehouse.
     
    Posted: Feb 16, 2019 By: adamuk18 Member since: Oct 2, 2018
    #13
  14. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,201 302
    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.
     
    Posted: Feb 16, 2019 By: lesliedocherty Member since: Jun 17, 2006
    #14
  15. Nochexman

    Nochexman UKBF Enthusiast Free Member

    1,826 283
    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.
     
    Posted: Feb 21, 2019 By: Nochexman Member since: Jun 14, 2011
    #15
  16. jrwatson

    jrwatson UKBF Newcomer Free Member

    8 2
    You need better customer service in that case.
     
    Posted: Mar 29, 2019 By: jrwatson Member since: Mar 28, 2019
    #16
  17. Taobao agent

    Taobao agent UKBF Contributor Full Member

    73 0
    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.
     
    Posted: Apr 8, 2019 By: Taobao agent Member since: Jul 23, 2018
    #17
  18. DontAsk

    DontAsk UKBF Ace Free Member

    1,065 139
    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.
     
    Posted: Apr 8, 2019 By: DontAsk Member since: Jan 7, 2015
    #18
  19. Mr D

    Mr D UKBF Legend Free Member

    14,921 1,630
    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. :)
     
    Posted: Apr 8, 2019 By: Mr D Member since: Feb 12, 2017
    #19
  20. khushy

    khushy UKBF Contributor Full Member

    64 7
    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.
     
    Posted: Apr 9, 2019 By: khushy Member since: Oct 25, 2006
    #20