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kocur26 · 10-05-2002, 12:32 AM

I looked at doing something very similar to this about two years ago when we had merchant account problems. At the time I couldn't find anyone else interested. I think it's a great fucking idea and it would benefit all of us.

Some chargebacks are legit. An overwhelming majority are bullshit. Don't believe me? Try handling your customer service phone calls for a day. I do this every month. You'd be amazed at the people who call. More times than I can count I've had people tell me that they want a full refund or they will charge it back even though they ADMIT to buying a membership. Sad thing is there is nothing that you can do about it.

We even tried suing fraudulent chargebacks. It works a good chunk of the time. Just because the bank grants the charge back does not discharge the debt owed. We sued many people and got default judgements if they did not hire a local attorney and fight it. But then you still have to collect. In the end we had to stop because it was costing far more money than we could collect on. We would recieve a default judgement for the actual charge, plus $200 or so in damages and attorney costs. We were only successful in collecting 10% of the time. It's nice to know though that those people will probably never try a bullshit chargeback again.

It's time the industry stood up for itself. VISA has no interest in stopping fraudulent chargebacks. They are making cash off of them so there is no incentive for smart cards, etc. They collect their processing fee, keep their customer happy by refunding them money then stick us with a $25 fee or worse.

10-05-2002, 12:32 AM
kocur26 Confirmed User Join Date: Jun 2002 Posts: 191	I looked at doing something very similar to this about two years ago when we had merchant account problems. At the time I couldn't find anyone else interested. I think it's a great fucking idea and it would benefit all of us. Some chargebacks are legit. An overwhelming majority are bullshit. Don't believe me? Try handling your customer service phone calls for a day. I do this every month. You'd be amazed at the people who call. More times than I can count I've had people tell me that they want a full refund or they will charge it back even though they ADMIT to buying a membership. Sad thing is there is nothing that you can do about it. We even tried suing fraudulent chargebacks. It works a good chunk of the time. Just because the bank grants the charge back does not discharge the debt owed. We sued many people and got default judgements if they did not hire a local attorney and fight it. But then you still have to collect. In the end we had to stop because it was costing far more money than we could collect on. We would recieve a default judgement for the actual charge, plus $200 or so in damages and attorney costs. We were only successful in collecting 10% of the time. It's nice to know though that those people will probably never try a bullshit chargeback again. It's time the industry stood up for itself. VISA has no interest in stopping fraudulent chargebacks. They are making cash off of them so there is no incentive for smart cards, etc. They collect their processing fee, keep their customer happy by refunding them money then stick us with a $25 fee or worse.