Starting a business is extremely difficult. The last thing you want to worry about is why money suddenly is missing from your business account. If this happened to you, then you might be experiencing a chargeback. Bold TV host Philip Michael spoke with Monica Eaton-Cardone, owner and co-founder of Chargebacks911. They discussed how you could prevent chargebacks from happening to your business accounts. Check it out here!
What is a chargeback?
Refunds are when the customer contacts the business to return a product for their money. But when the customer files a dispute with their bank or credit card company – and they validate the cardholder’s request – funds are forcibly taken from the business’s account. This is a chargeback. Also, the customer isn’t obligated to return their purchase to the seller. Unfortunately, the seller doesn’t have a say in the matter and doesn’t know about the issue until after the fact.
Due to COVID, many local businesses pivoted to conduct business online, and more consumers have turned to shop online. So, more businesses have been experiencing more chargebacks in the last year.
Communication is key.
Cardone mentioned that the number one reason for a chargeback is a lack of communication between the buyer and the seller. It’s crucial to communicate and to be available if the customer has any questions or concerns. If a product is late, make sure to explain to them why it’s late. If your business requires recurring payments, make sure the customer is aware of it. Many customers might not read terms and conditions, so make sure the really important information is known to the customer.
Good customer service can be the difference between a successful and failed business. Some of the most thriving companies focus more on customer service over shareholder value. Jack Ma, CEO of Alibaba, has a 1-2-3 philosophy: customer satisfaction, employee satisfaction, then shareholder satisfaction. Because without the first two, the business doesn’t exist.