How do you fight Chargebacks harming your business?

Chargebacks are the most painful thing after a sale. If you are selling a software and a customer file a chargeback INTENTIONALLY to deceive you then what do you do?

Payment is always take buyer's side so how do you protect yourself and your money?
What formula is there that Paypal annouces its decision in sellers Favor? Any tracking info or what ?

Discuss.

 

Paypal tends to be pretty good about digital goods, especially if you can show that you delivered or the customer downloaded.

 

Rig the software so that if a chargeback is initiated you can make the customer's website completely implode.

 

If you are selling a software product then implement IPN script - so that paypal receives notification and you can file under this ground that IPN script was used so the user was directly directed to download location and also you can tell paypal with screenshot that user has downloaded the product after paying through paypal or not.

I have used this on occassions and it worked for me - but rather define product features clearly - it helps a lot.

 

Yes, you are right. But few customers intentionally do that to get their money back and to deceive the seller.

 

Great question and responses! I've also had a customer do a charge back accidentally - they just forgot they ordered something, and thus we won the case - however, I was told by the bank that we STILL have to pay a case fee for the chargeback showing up. I was NOT happy that we have to pay a fee for a customer's issue even after we "won" the case. I might suggest (to prevent accidental chargebacks) to mention what will appear on the credit card statement SEVERAL times, and include it with the item, etc. Curious if anyone else has had a similar problem / resolution.

 

chargeaback often is taken advantage by cheat nowadays

 

Are these situations where customers want their money back, and you're refusing to refund them? Or that they're not even trying to ask for a refund (and are surprising you with a CB)?

 

Yes, If a customer ask me for a refund, because he is not satisfied with the item, I will be having no problem at all. But some customers open a dispute at Paypal or chargeback because they think that they do not know how to get results from that item; surprisingly. Some of them say that they did not receive the download at all and they chargeback to get the item + money both.

 

With some websites we have seen customers that are quick to dispute charges via PayPal more often than regular cc/debit card charges, though we're not sure why. Maybe PP makes it easier to dispute online?