Quote:
Originally Posted by ColetteX
i dont understand why are people so mad about chargebacks. its like you are designer and client dont like your work. normal part of the business
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Because a chargeback isn't the same as a credit. If a customer writes and is unsatisfied then we simply give them their money back. That's a credit.
If they DON'T write you, but instead are on the site everyday and then a couple of months later are looking at their bank statement and see that charge from months back and can't remember what it is...and then they go to the bank claiming that they don't know what that's about. Then they get their money back and we get nailed with a chargeback.
So then we not only lose the initial money, but we also STILL have to pay the processing fee (anywhere from single digits to 20%) AND we have to pay a fine as well. So we lose money big time. And then on top of all that, if you get more than a small percentage of chargebacks...you lose your merchant account.
Chargebacks are the worst.