Important information regarding chargebacks:
It is up to YOU (the merchant) to make sure all chargebacks/disputes are entered into the NETbilling administration area for your account (s).
These chargebacks are sent to you, as the Merchant. NETbilling does receive and import chargeback notifications from many of the banks/processors whom we work with. However, chargeback imports are often incomplete or missing so this imported data should be seen as a convenience and timesaver but not a replacement for checking to make sure all chargebacks / disputes are entered into our system manually. NETbilling will not be held responsible for chargeback import completion or accuracy.
At the time that you enter the information for a transaction that has been disputed, there are several steps you can easily take to stop a rebilling if applcable, refund the last charge, add to the negative database, and disable a member password if necessary. It is very simple to do.
Here is an example page:
This process will not only help to keep those customers from having the ability to purchase on your site again, it will keep them for being able to purchase and chargeback on all our NETbilling merchants.
In addition, you will be able to utilize the Chargeback Lookout reports within the reporting section of the admin.
Here is a link for your convenience: https://secure.netbilling.com/merchant/chargebacklookout
Many banks give you, the merchant, an opportunity to dispute the chargeback. If you have the time to pursue disputing the chargeback sometimes you can actually win and get your money back from the customer.
On the document you receive from the bank there should be contact information and instructions as to where to send (fax) your dispute of the chargeback. You should send a copy of the terms and conditions for the website and a copy of the transaction from the admin panel along with an explanation as to why you feel it should be reversed. Also let the bank know; the customer in question never contacted you directly to let you know he or she was unsatisfied or that they wanted to request a refund. Many of you have very generous refund policies and it is necessary for you to make it clear to your bank that all the customer needed to do was ask for a refund and they would have received it. We have compiled a few example letters for your use, in an effort to assist you in fighting the battle of friendly fraud (buyer remorse or denial).
(If the chargeback is due do to obvious fraud you should not proceed with the following:-)
As a merchant you are entitled to attempt collections from any customer who disputes a transaction. There are a couple of ways to do so:
One is to send an e-mail to the customer that you will be reporting to a credit agency their .bad debt. to your company. Many people would rather pay then blemish their credit rating. If they agree to pay, it is best to have them send a check or money order. You can include the amount of the original sale, the chargeback fee (typically $25) and a handling fee if you like, so a $29.95 sale can easily turn into a $74.95 collectable .bad debt. if you add on a $20.00 handling fee.
You can also hire an outside collection agency to handle the .bad debt.. They will be more than happy to try and collect from the customer on your behalf. Most collection agencies typically charge up to 50% of all monies collected but they are trained specifically in collections and have an above average response. The additional fees should be added to the total amount due to you from the customer before you send them to collections.
It is our goal to spread the knowledge and offer a basic guideline of how to handle a chargeback and protect your merchant account.
If you have additional questions or concerns please feel free to contact our support team.