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Doug Nebeker ("Doug")
It has been happening for some time now on one of my sites.
A product is ordered a couple of weeks later a chargeback is issued and than 10-ish days later the order is reactivated.
I have contacted customers but never did I get an answer, neither about chargeback nor about following reactivation?!?!
It is shareit! and it happens with couple of products- so it is not product specific.
Anyone had something similar?
I contacted shareit! with the question and they answered along the lines that they have no much control over chargebacks because they have no customer's signature, and that sometimes customers reactivate their orders by canceling chargeback request...
I was reading up on this yesterday due to a personal credit card problem. Apparently, if you charge something and pay with a PIN number enabled card, they (the card companies) will rarely approve a chargeback, but otherwise, they will usually approve it (eg. the benefit of the doubt goes to the consumer). I did a chargeback once with pretty flimsy evidence and I got it no problem. Also, it seemed like there were a lot of costs and fees to the merchant beyond just the chargeback itself.
Customer might get confused with unknown company on their credit card statement. In ShareIt's case it might be "Element 5" or something else - their company structure is quite complicated. And when they issue chargeback request they probably get some email from ShareIt, which reminds them what that's all about and they cancel chargeback at thah point.
I'm also with ShareIt but don't see this pattern. Probably because I'm B2B where buyers are more experienced with these issues.
Yep, there's the problem; you're with Shareit.
Have you looked at alternatives, such as Fastspring?
Wednesday, July 10, 2013
@AC: Why do you single out ShareIt as causing this problem? Why wouldn't FastSpring or any other reseller cause the same problem?
(I don't think it's relevant that ShareIt might show up as "Element5" or whatever on credit card statements - the problem is that it's not the name of the software vendor. I doubt the buyer notices the name of the reseller during the checkout process.)
Thursday, July 11, 2013
If that is the issue - FastSpring send the customer a reminder that their next card statement will include a charge from them and what it's for some time after the order. That may help to cut down on these.
Thursday, July 11, 2013
I completely agree with Jonathan.
I think this problem has two origins: 1. Order page 2. Confirmation e-mail
1. It is important that the information about the reseller, as well as what will appear on the credit card statement should be clearly visible on the order page.
2. The confirmation e-mail should have this clear message as well to avoid confusion for the client. Also this confirmation e-mail message should have the option to be customized by the vendor. We have seen a big drop in such cases after we introduced confirmation e-mail customization, where our partners could personalize it according to their needs.
Monday, July 15, 2013
It started happening to us a lot once we improved our license checking code (more for refunds though than chargebacks). Basically before when people would request a refund, we'd go ahead and process it. However there was no way for the software to call home to confirm a refund was done, only on the next update. So about a year ago we introduced a call home to validate your license, and if it's refunded you will be locked out.
Guess what, some people who were abusing the refund policy suddenly got locked out. As a result, almost half of all people who requested refunds ended up re-purchasing the software!! Yes that many.
We knew some people were abusing our system and asking for refunds while continuing to use the software. The easiest indicators were people asking for a refund within a minute or two of purchasing the software!! It had gotten to the point where we knew we had to deal with it, we couldn't just ignore it anymore. We had no choice but to implement a license check.
People wonder why a lot of software do that, especially games. It's really because people abuse piracy. Before people would mainly share licenses, now it's becoming more common practice to purchase it and try to get a refund while continuing to use the software. Many places online suggest doing this.
In any case, once we implemented the license validation check the number of refunds dropped significantly within no time. Not only that, but of those that do request refunds, many end up re-purchasing it shortly after. The percentage is still around 50% the last time I checked. Some really did want a refund and found after all we were the best for them, but in most cases it really was people trying to get free licenses. There are certain behavior patterns that make this more obvious than not ;)
We also found that some people shared their license with quite a lot of people. Some intentionally and some not intentionally. We expected some of that, but not exactly what we got. It turned out that a small number shared with a LOT of people rather than a lot of people sharing with a few people. And those that tended to share with lots of people also also tended to ask for refunds.
In any case, if people are re-purchasing it right after, it generally means they were trying to get a free license and then once they found out it didn't work, they had to purchase it. This is the new way we found people try to get free licenses to software. And unfortunately in many cases it still works.
Wednesday, July 17, 2013
"The easiest indicators were people asking for a refund within a minute or two of purchasing the software" -- I wonder what would happen if our apps timed how long our products were used for? So if they asked for a refund when it had only been used to 30 seconds then you'd have something to present to them, ie. "Wouldn't you like to try it longer than 30 seconds first?"
You could have the app generate a special refund code (with the time used) that they need to provide to initiate the refund process, otherwise; refuse to refund. Legit users wouldn't be bothered by providing this code at all; but pirates would then know, that *you* know, that they're full of it.
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