Dealing with chargeback requests

[ukbusinessowne]

Hi,

I run a small business and we had our first chargeback recently. We run a business where people pay an annual subscription, and are notified in advance by email. The person concerned had of their own accord switched out their account to someone else (against our terms and conditions) so payment was taken and they hadn't received emails in advance (their fault, not ours).

I disputed the chargeback from Natwest - as the customer concerned hadn't even bothered to get in touch with us to resolve the matter. Natwest upheld the customer's chargeback request, even though I disputed it and provided evidence that the customer had not adhered to the account terms and conditions.

Has anyone got any useful advice re how to avoid/successfully challenge chargebacks.

It seems completely disgusting to me that customers can do this and as a business apparently you have no rights - even when a customer is in the wrong. It is also even more disgusting that the bank just goes ahead with the chargeback without even ensuring the customer has made contact with the business concerned.

 

[pentel]

There is nothing stopping you making a claim against the customer.

Make a court claim for money

How to take legal action if someone owes you money (small claims court), how much it costs, what happens next. Includes information from withdrawn guidance EX303, EX304, EX306, EX321, EX325 and EX350.

www.gov.uk

 

[ukbusinessowne]

Thanks, good to know that court is an option, but ideally I'd like to avoid the chargebacks in the first place or be able to successfully dispute.

I am going to complain to the Financial Ombudsman service, as I want to understand better how to successfully avoid dispute chargebacks going forwards, and don't see how Natwest can approve a chargeback when the customer hasn't even made contact with us.

Not sure I want the hassle of court as it's not a huge amount of money we are talking about.

Does anyone know if there are any deadlines/time limits on chargebacks? Has anyone had any joy challenging chargebacks? It's services we offer, rather than physical products.

 

[antropy]

Not sure I want the hassle of court as it's not a huge amount of money we are talking about.

It took us over a year and a half to win back £550 in a court case recently, but I'm glad we did.

Paul.

 

[Paul Kelly ICHYB]

The person concerned had of their own accord switched out their account to someone else

This is probably a very rare occurrence and, unless you change the payment process, probably nothing you can do except go the court route.

I assume that you have stopped the service provision?

 

[fisicx]

It seems completely disgusting to me that customers can do this and as a business apparently you have no rights - even when a customer is in the wrong. It is also even more disgusting that the bank just goes ahead with the chargeback without even ensuring the customer has made contact with the business concerned.

Par for the course these days. It's all automated and the bank's systems just hit the refund button with the minimum of due diligence.

 

[ukbusinessowne]

Yes I have stopped the service, so we haven't lost a huge amount of money, although I have to pay bank fees for said transaction and dispute fee. I am concerned re not getting burnt with this again in future.