Updated: Nov 9, 2020
You're on your way to the office and you go to check you business banking account and notice a large sum of money missing. You start to scroll down your banking app on your mobile phone and see it was you payment provider who helped themselves to your money. Without any notice. You make the call to your rep and he finds out there has been a dispute/ chargeback from a customer of yours.
In a world where cash is becoming more and more obsolete, fraudsters and scammers will go out of there way so much, they target industries. For example ground transportation.
A customer of mine, who has been in business for many years, told me that in the 30 years of her running a limo company that she has only had 2 chargebacks, including the 1 I am going to tell you about.
A family booked a limousine for their daughters wedding. The day of the wedding something came up unexpectedly, the limo was going to be late for the wedding.
Like a business woman with experience, she went straight into solution mode and upgraded the limousine to a sprinter bus, dispatched immediately. En route. She wasn't about to let some poor bride have her fairy tail wedding day ruined because her driver was running late.
The bus pulls up, the bride and groom are excited (who I am not calling a scammer, but hey? They tried). The day goes on and they were having so much fun. They even asked the driver of the sprinter to take some pictures of them partying in the bus. The night ended, all was good. So they thought.
A few days later the owner of the limousine company checked her banking, morning routine because she's next day funded, and noticed a large some of money missing. The wedding that she gave an upgrade to has now chargeback the credit card transaction.
My client (and friend) called me that morning. I quickly took her call, because in our business, NO NEWS is GOOD NEWS. Something had to be up. She was clearly upset, and had gathered information from the night. Which included:
Pre Auth Form Signed (Need a Pre Auth form? Get a custom template by following us on social media and follow our blog!)
Recorded Phone Call
Front & Back of Drivers License
Not sure how many of you have ever had a dispute or chargeback? Notice small businesses don't run Amex too often, they are the worst. People take advantage of it, they almost always side with their card holder.
I ended up having my friend reach out to our chargeback specialist. She is an ex-employee of one of the biggest payment processors in the world, she ran their chargeback department. EXPERT. The picture is what prevented the bride and groom scammers (ok, now Im calling them scammers) from getting one over on a hard working business owner. She won the chargeback against American express.
Here are a couple tips to help prevent chargebacks
1. Always try and get a signature of the card holder. Its very hard to to charge something back when you signed for it. Solid proof like a picture. If you are a business where you never see the credit card you need to send out a pre auth form to the customer upon booking service.
2. If you are in the e commerce business and you feel suspicious trust your instinct. Choose to only ship to the billing address to be extra safe.
3. Gather as much secure info up front and keep it filed. Take this seriously, most card brands give 6 month to dispute transactions. That means 6 months down the road, the bank can go into your bank account and take back the funds. SIX MONTHS. Are you prepared for a dispute from 6 months ago? .
At BBS we are here to help. We want for you, the business owner. to focus on growing your business. we focus on making sure your money hits your account every day, and stays there. In the event you get a chargeback, we will take it on and our industry experts will submit the response on your behalf. Wee have a better shot of winning your case. With the amount of fraud that is going on these days, you want to place yourself in a position to win. Thats why partner with Bespoke Bancard Solutions. We got your back. Please respond if you have any questions or would like to know how you can protect you and your business from situations like this.
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