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On a semi related note, when a customer charges back, a program generally eats the processing fee, resulting in a negative $ amount from the sale.
Example: If a member is charged $30 for a membership, and the program is at 15% processing fees, it costs $4.50 just to process the transaction. If the member does a chargeback, the member gets back their entire $30, but the program does not receive the $4.50 transaction fee back, resulting in -$4.50 for the sale. Chargebacks are bad for business. so most are proactive in taking care of the suspect sales as credits within the allotted window. If after that point, if the sale is indeed fraudulent, it will come back to bite the program hard.
Someone also mentioned bounced checks, which I know from experience account for over 90% of our refunded amounts. There are three different types of "refunds".
1) Chargebacks - where a customer makes a claim that they did not receive the service promised
2) Credits - Possibly from cancelled immediately after the sale, or refunded from the programs end.
3) Returned checks - A check or ACH that is returned to the processor for insufficient funds/false information/fraud.
Actual chargebacks are by far the worst. For most programs to stay in good standing chargebacks are supposed to be near under 1% of the total gross.
I know this post is a little off tangent, and I have no idea about BangBros setup, but those are just some basics.
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