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Chargeback Question

If a customer buys a software off you with their credit card for say $50, and they tell you that they want to file a chargeback; can you just directly refund the $50 back to the customer to prevent the chargeback fees? 

Because what I'm worried about is giving the $50 back and then being hit with a chargeback fee afterwards; or them taking out another $50 out of my account giving him a total of $100.

Thanks

Friday, December 14, 2007
 
 
It depends.

Amex has an "inquiry" status which allows the customer to dispute the charge and then you can go to your merchant account and say "I will refund the customer myself via my own way".  If you dispute what the customer says, you can do that also, and then they'll decide (almost always in the customers favor) and do the refund themselves.

Visa/MC I believe just do a chargeback and notify you that it has already happened.
Michael H. Pryor Send private email
Friday, December 14, 2007
 
 
It depends.  If they already filed the chargeback, no it does not matter if you refund it, you will still pay the chargeback fee.  In addition, if the customer says they made a mistake and you represent the chargeback with their signed authorization, you still pay the chargeback fee but get the amound credited back.  We charge clients the chargeback fee when they do this and most have no problem with it given someone on their end made an error and put through a fraudulant chargeback by mistake.  As a customer, if you don't recognise a charge you should just do an inquiry request, then the merchant provides documentation and you can decide if you want to do a chargeback.  It is a shame the card companies don't require this as a first step before chargeback but they don't care, they make money either (all) way(s).
Pete
Friday, December 14, 2007
 
 
Worry about the customer taking an extra $50 via chargeback if it actually happens. Until then, you're wasting more than $50 worth of your time thinking about it.
Peter Pragmatist
Saturday, December 15, 2007
 
 
This is really a question for the CC company. They all have different procedures and policies.

Having dealt with this in the past, do not manually refund the money yourself once a chargeback has been initiated unless you sort everything out with the CC company first.

-Andrew
Andrew Send private email
Monday, December 17, 2007
 
 

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