over 1%...
 

will anyone either admit, or admit to knowing - a site that's average chargeback rate is over 1%? or 2%? more?

sounds crazy to me...

I bet sites with "free signups" have horrible chargeback rates after the trial converts to membership at $99.99 a month.

I had one month where I hit 3% back in the beginning. I have not gone over 1% since.

If Ox didnt refund like dirty whores so easy, I am sure they would. Esp back when their servers ran like 386s.

interesting......

I bet Big Players sites have high chargebacks. Eventually people realize that they are getting rebilled at $49.99/month

I will second that Ox has an usually high percentage of chargebacks. Definitely over 1%.

I had a 100% chargeback ratio at soulcash once, but thats because i only got 1 sale :)

cya
Dikkechill

A company producing high chargebacks is causing many problems for everyone. It's not just that the surfer will have trouble 'trusting' an adult site again to join one, they also will not be allowed to join another site using that CC processor.

I had a good example with iBill recently. I was charged twice for something that I shouldn't have been charged at all for. After a few snotty e-mails it was finally resolved with 100% confirmation from iBill that the company in question was at fault and the problem was very much their end. Despite that it now seems iBill have banned my address so I can't use a site that uses iBill. This wasn't even a chargeback just a refund in the end.

If you bear in mind that those who join sites usually join several sites over a period of time rather than just one, to keep losing them to blacklist because they were ripped off in the first place can only damage us all. I fully appreciate that for those getting under 1% most of the chargebacks are from assholes who just don't wanna pay the bill and are no great loss. However the sites getting much higher than that are fucking it up by screwing the surfer. That surfer either wont or cant buy from a site again and is a lost sale not just for that site.

I have news for you... Much more than 1% of our customers are assholes. I'd say at least 1% are assholes and 1% are theives.... and that puts us at 2% at least! lmao

Quiet, they won't admit it because that would make them 'uncool' to put their necks out. Plenty of people are over 1% and that doesn't necessarily make them bad companies. Fuck, as far as I'm concerned the limit should be 3% or 4% again. Surfers can be motherfuckers. I say this not because I don't like my customers, I do, but because the first year I was in business I had my own merchant accounts and handled all my customer support and billing calls.

Brad

Ifriends has outrageous chargebacks.

Way more than 1% for sure.

Oh man I wish I had some of the "Customer Service" guiys recorded messages from dealing with my ex employer and them calling and trying to get chargebacks

hahaha

They had women calling asking what charges were on cards etc. We had their ip sitting in live rooms and interative feeds for hours being charged by the minute, yet "It wasnt my husband, he didnt do this."

hahah

funny stuff.

Those were good times.

1999

I have all kinds of crazy stories... it sure was colorful talking to mid-america on the phone. Don't believe the propoganda, chargebacks are by nature higher than 1% in our business regardless of what your business practices are. You could refund everyone that calls in and I'd bet most merchants would still be higher than 1%. All you need to do is talk to one of the merchant banking consultants to find out what big companies have been through 10 or 20 or more merchant accounts :winkwink:

Brad

LOL... very True...

I have a question about chargebacks:

If I am a customer of a site, and I don't like the content after signing up, can I legally charge back? Say I just don't like the content. I know I can probably ask for a refund, but what about charging back? I know it's fraud to charge back if you claim you didn't make the charge, but what about "customer satisfaction" issues - can those legally result in chargebacks?

If so, wouldn't it be easy for people to get 100 people who don't like you together and charge your ass back and lose you your merchant account?

I remember reading about some group of right wingers who attacked a Green or some sort of left leaning site like that - where they got his merchant account or processing shut down. Is it really that easy?

When I ran an offline Escort service the charges would show up as "Lees Auto Repair" we use to get calls from women all the time "My husband does not even have a car!" one time this women said "Its a old car why would he spend 600 dollars on that peice of junk!"

Little did they know that he might of not had a vcar but their husbands did get a nice ride and that that 600 dollars spent was not on a peice of junk it was on a hot peice of ASS

:1orglaugh :thumbsup

That might be questionable. Chargebacks are only meant to be for when the transaction wasnt made, non delivery of product etc. So I guess it could be non delivery.

The big thing is the card companies dont care - if you dont have a signature on the credit card transaction they dont even ask a reason. Even with a CVV2 number they dont care - which is wrong because it proves the person had the card, so unless they are reporting it lost too, they should be able to charge it back.

Even with PayPal it is pretty easy to get a chargeback, and they make transactions to your card which you have to verify before you can use it.

Thanks for the reply Jayson.

One more question. With the new rules, what time frame is Visa going to use to determine your chargeback ratio?

If you have a site that's been around for 4 years, your average is going to be pretty set already over that period of time.

I you start a site tomorrow, and your second sale charges back, you're going to be fucked, but you have such a low number of transactions that you could fix the ratio pretty quick.

Is this an annual average, a monthly average, or a lifetime average of the site that Visa is looking at?

If a guy charges back when he has been rebilled a few times, does that count as 1 chargeback total or 1 chargeback for each separate transaction?

More than 1% probably are assholes. I used the 1% simply 'cause it was easy and being thrown about. The point made wasn't so much about 1% but that the companies genuinely screwing the surfers (and some of the very big guys are doing it) are fucking up more than just the one sale for them. But then the problem with much of this business has always been that many have the total inability to see long term.

One chargeback.

And a chargeback is only when the transactions were forcefully credited by the issuing bank. Usually billing companies would just refund the money now.

http://207.240.40.4/uvlight/images/cb.gif

about a year's worth of transactions (oct 01 to present). well under 1%.

Nice.

Quiet, your low number of chargebacks might also be because your site's monthly charge isn't that high. So its not a huge shock when they see their credit card bill.

hhmmmmmmmm, what sites may i ask?:1orglaugh

So it sounds like One percent might be possible.

That may be the case but would also help support the fact that many people don't realise how much they're gonna be paying. It's clear on most sites but by no means on all.

over $2.45 million nice :thumbsup

We're under 1% as well, with all the scrub dbases out there it's not that hard.

When someone asks for a refund because it "wasn't them", just send them a polite email saying "no problem, we'll refund your account and cancel your credit card ASAP". I've done that before when we handled our own customer service, it's amazing how fast these idiots turn around. :Graucho