At ChargebackOps we provide a hands-on, boutique service for each of our clients. We work hard to identify which business practices can lead to chargebacks. This past week one of our clients was testing their e-commerce system by placing a test order, and accidentally submitted the order. Not having the permission to reverse the order themselves, they immediately called their customer service department.
What they learned is not only did their e-commerce system lack the capability to reverse an order, their very own customer service department instructed them to “Call your bank and dispute the charge.” Unbelievable, yes. Why and how did this happen?
This happened because banks think of, and promote, chargebacks as “The Easy Button.” Banks make millions of dollars annually on chargebacks. In fact, most modern banks now have a “dispute resolution” self-service link in front of every card holder transaction. And unfortunately this spills over to each of us as the “intuitive” approach for handling customer service issues. While this may make intuitive sense, what this customer service agent did not realize was the cost to his company included the loss of the merchandise, the transacted amount, processor chargeback fees, damage to their merchant account, and of course created a bad customer experience.
News flash: if you have a problem with a retailer, please call them directly. And for you retailers out there, treat your customers like a King and they will reward you through the years.
If you would like help with chargeback fraud, or to discuss your fraud prevention strategy, drop us a line at firstname.lastname@example.org.