Home Based Business Big Potential For Bad Money
If you are going to start your own company, home based business, a storefront or any other business venture then you should be very careful of a big concern, and that is the area of charge backs.
A chargeback happens when the person buying your products or service decides to tell the credit card company they did not receive the goods. In some cases, this is accurate and it happens. The big concern is false charge backs, or bad money.
See a false chargeback happens when the products are received and then that still claim they never got it. This is unfortunately quite common place in some industries, in particular online sales.
And by all means do not think that your banks are entirely on your side. An average charge back will cause the processing agent to “automatically” side with the customer. It is up to you, the vendor, to prove that you sent it, and that it was received. Modern advancement with shipping companies, such as UPS and DHL, actually allow you to print out the actual signature directly from their websites. This is a blessing.
On top of siding with the customer up front, you are normally charged a fee. The average chargeback is $35-50 per occurrence. Three charge backs and you just lost $100 bucks or more. Even if you are able to prove the chargeback was false, you are not likely going to get the fee returned, and good luck trying to recoup that money from the customer. Getting them to pay you the fee is even harder then getting the original funds.
The main concern is that you will never be able to fully avoid a chargeback. But you can learn to keep records of all of your transactions. If you’re using something like a yahoo store then good: it does a lot of that for you. Make sure you use a reputable shipping company, and learn what you get for services. Stay on top of them and try to recoup what you can. Getting paid for the item is still better then losing the money and the items.
Get more information online by visiting his website Real-Internet-Success.com, http://www.Real-Internet-Success.com
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Derek Wood is an avid internet marketer and a successful online and offline business owner. He has been actively building his internet-based businesses, including web-hosting, retail stores, online publishing, and online marketing for more then 20 years.
Tags: business start up, home business, money, start your own business
