Chargeback Issues of Small Buisness

[steve1318]

My question involves business law in the state of: NY. I wanted to find out whether anything can be done about receiving chargebacks when you are selling virtual products (online service). Unlike selling an actual item we are offering a service that is rendered online and for the past month have started to receive numerous chargebacks from users who even sent out a copy of their driver licenses or passports. Most of the chargeback reasons as seen from the merchant provider is: Fraudlent - unrecognied transaction. Is it possible to win a dispute if you have a copy of user's information. Or what do you recommend to do at least to decrease the amount of chargebacks like these, be aware that all of them come from users who reside in non US countries. Let me know your suggestions.

 

[Antigone*]

My question involves business law in the state of: NY. I wanted to find out whether anything can be done about receiving chargebacks when you are selling virtual products (online service). Unlike selling an actual item we are offering a service that is rendered online and for the past month have started to receive numerous chargebacks from users who even sent out a copy of their driver licenses or passports. Most of the chargeback reasons as seen from the merchant provider is: Fraudlent - unrecognied transaction. Is it possible to win a dispute if you have a copy of user's information. Or what do you recommend to do at least to decrease the amount of chargebacks like these, be aware that all of them come from users who reside in non US countries. Let me know your suggestions.

In your line of business chargebacks are going to be high. You really need to keep good records and put measures in place to limit fraudulent activity. I can tell you also that you really need to be aware that your processor isn't going to allow a huge number of chargebacks to continue. Don't be surprised when you get a request to set up an account to be held as collateral, or to be asked to find another processor.

You might want to get in contact with a company like Cybersource to help in addition to your merchant processor.

take care, ana