Chargebacks and how to win them...

[beley]

I have been in the "internet" industry for years with an e-commerce venture. We've won every chargeback we've contested simply by providing proof of delivery from the carrier, etc. that it was delivered to their residence.

However, with the online service industry there is nothing being delivered, and so it's very hard to prove that they are actually who they say they are.

So my question... have any of you actually won a chargeback dispute? If so, how? Did you collect additional information about your customer (such as make them fax a copy of driver's license)? Is that too extreme?

I just had my Paysystems account closed because of a "Chargeback Ratio" (even though we only had ONE chargeback). The chargeback was a stupid customer that wanted to cancel his account but didn't know how... had been a customer for 3 months but only contested 1 charge. Cost us $30 and now our paysystems account.

Any advice, suggestions would be appreciated.

[Andrew]

Beley,

That is a REALLY tough one. Right or wrong, in the internet service business, with no actual signature and no proof of delivery per se, it is extremely difficult to win a chargeback.

However, you should have a good case with paysystems to not terminate your account. If you dont get anywhere with them, you are better off switching merchant providers. Most Internet merchant account providers are used to seeing chargebacks and accept them. Usually your "chargeback ratio" has an effect on your rate, etc...

The hefty fees you get charged for chargebacks are usually compensation enough for the provider.

Only way Ive ever seen a provider fight a chargeback and be successful with an internet purchase is to have ALOT of compelling evidence that the customer knowingly ordered and received the service.

ie) IP signed up from with confirmation from ISP that IP is withing their pool, correspondance between yourself and the customer, etc

IME - Even with this, your odds arent great, sorry