Manage chargebacks
A chargeback occurs when a client disputes a transaction and requests their bank to issue a refund. Learn more about how chargebacks work and what you can do to help prevent them.
How chargebacks work
- Services/products are defective not as described: The cardholder reports that the service or product they received did not match the description given at the time of purchase.
- Canceled services/products: The cardholder claims to have returned products or canceled services, yet they have not received the corresponding refund.
- Unauthorized transaction: The charge was not authorized by the cardholder.
- Non-delivery: The cardholder has made payment for a service or product that they have not received.
- Delayed refund: The cardholder requested a refund, but the process took longer than expected.
Chargebacks are time-sensitive, therefore we need your prompt collaboration in addressing them as swiftly as possible.
Understanding the process
- The cardholder contacts their card-issuing bank to file a complaint.
- The bank identifies the disputed transaction and proceeds to provide an instant refund of the disputed transaction amount on the cardholder's bank account.
- Simultaneously, this action triggers a deduction of the disputed amount and a penalty charge on BeYou365's end.
- BeYou365 will send you an email to notify you about the chargeback raised against your business. You will have 5 days to submit the information requested by your cardholder's bank. The bank is looking for any supporting evidence you can provide concerning the transaction, including but not limited to contracts, invoices, email exchanges, or documented proof of delivery.
- If the dispute is won, the funds are sent back to BeYou365. However, if the dispute is lost, the funds remain with the cardholder and will be automatically deducted from your BeYou365 wallet.
Preventing chargebacks
- Choose secure payment methods: Opt for in-person payments, where clients physically tap, insert, or swipe their cards at the point of sale, reducing the risk of fraud. Instead of using Manual card entry, utilize methods like payment links, QR codes, capturing card details, or requesting upfront deposits. These methods involve client participation while cutting out the additional payment processing costs incurred with manual card entry.
- Make sure your policies are clear: Keep your memberships, pricing, cancellation policies, and return policies comprehensive and accessible to clients at all times. Try having them readily available on your website, highlighting them within your custom receipt message, and creating a form outlining the policies for first-time clients.
- Maintain accurate client records: Protect your business by updating client information regularly. Consider taking photos of the services provided. This can be a great way to showcase your exceptional work and provide evidence if a client disputes the quality of services received.
BeYou365 acts as an intermediary, facilitating communication between you and the cardholder's bank. BeYou365 does not possess decision-making authority in this context.
Preventing fraud
- Watch out for clients with unusual contact details in their accounts, including names or email addresses. If you're unsure about someone's identity, ask them for ID and the last four digits of their card to double-check.
- If a new client starts making multiple purchases over a short time, verify their identity and confirm that they own the card used.
- When someone wants to manually add their card details, ask for ID. That way, you can match the name on the card to their ID.
- If a client is using a gift card that doesn't belong to them and cannot provide the purchaser's name, reach out to the person who bought the gift card for verification.