My number of chargebacks have dropped

[GordonH]

I have noticed a big drop in our number of chargebacks.

There seem to be two reasons:

1. Card companies seem less willing to charge back lots of transactions for the same customer if its not a case like a stolen card. I used to get this sort of thing a lot. Also they don't seem willing to go back years on the monthly hosting nowadays.

2. I changed the merchant reference on the card statements to a special URL that has information on what the charge is for, for people who can't remember. This page is getting a few visitors.

Of course this will probably be a case of "famous last words" but its been like this for over a month now.

[Chicken]

As you've now knocked on wood, get ready for the onslaught.

[ldcdc]

1. Card companies seem less willing to charge back lots of transactions for the same customer if its not a case like a stolen card. I used to get this sort of thing a lot. Also they don't seem willing to go back years on the monthly hosting nowadays.

2. I changed the merchant reference on the card statements to a special URL that has information on what the charge is for, for people who can't remember. This page is getting a few visitors.

At first glance #1 seems less likely to be the reason for the change. I mean, you said it's been going on for a month now. Can all the banks change their policy just like that? One owuld think it would take some kind of undertstanding between them.

#2 seems and hopefully is the reason for the change, because it means it is something all merchants could do. I'm all for things that work, and people can do themselves. When did you implement this change?

Good luck keeping the chargeback numbers at low levels! :)

[GordonH]

I think the changes in card issuers policies was gadual over the past six months connected with e verified by visa thing.

The other change was made the first week in January.
Fingers crossed it is still working.

[Corey Bryant]

Make sure (if you can) contact your MAP (merchant account provider) and ask them to put your phone number on the consumer statement. That should help as well. And Congratulations!

[Cubic]

We haven't had many chargebacks lately either. Congratulations on the number dropping...That oughta save a few bucks.

[GordonH]

Still none.....

[Cubic]

Wow....If you don't mind me asking roughly how many chargebacks were you getting each month 9 months ago and roughly how many are you getting now? I absolutely hate chargebacks. The fee we have to pay definitely cuts down on profit.

[GordonH]

A year ago it was four or five a week.
By Christmas 2005 this had dropped to one or two a week.
Now its down to zero.

Part of it is down to the card companies.
They seem unwilling to let people chargeback yearsworth of monthly payments.
Tjis was a huge problem for us.
Once a month or so we used to get 10 to 30 chargebacks from the same person for years back of monthly payments.

[RazerHost]

What happens if client signs up for 1 year hosting... then 10 months down the road requests a charge back, will he get it?

[GordonH]

What happens if client signs up for 1 year hosting... then 10 months down the road requests a charge back, will he get it?

This used to be possible.
The official limit was always six months but if there was no signature most card issuers would go back to the date of the original charge.
There is some evidence they are sticking more rigidly to six months since verified by visa (and the mastercard equivalent) came in.

Monthly payments are treated differently.
Provided the last one was within six months they can go back years if they want to.
Each monthly payment attracts a chargeback fee so this can cost thousands if they go back a year or two.
However, I have not had one of those for more than six months so maybe the card companies are clamping down on it.
It was ALWAYS resellers.
They would lose thousands on adwords or overture campaigns and then charge back everything they could.

[Corey Bryant]

What happens if client signs up for 1 year hosting... then 10 months down the road requests a charge back, will he get it?It depends on the issuing bank actually. For example usually Bank of America debit card with the Visa logo is usually two months. For the most part with Visa / MasterCard issuers, the standard is six month. American Express, I have not seena cut off - I have seen chargebacks go back as far as eighteen months

[ldcdc]

It was ALWAYS resellers.
They would lose thousands on adwords or overture campaigns and then charge back everything they could.That's just despicable. I hate it when I hear of chargebacks being abused.