Thursday, September 4, 2008

Customer Chargeback Fraud. Thank You Paypal

A few months ago, a customer signed up with a new vteam for only 3 weeks. He complained that we had not given him the right programmer and he felt no reason to continue. Fair enough.

A few ago he called me on my cell phone and demanded that we give him his money back. He said that the programmer was not up to the mark and wasted his time. I reminded him that he interviewed the guy out of many and he made the selection himself. At this point he brought up something I have never heard before. Not from a client.

He said that he paid with a credit card and he was going to file a chargeback. He offered me to just refund the money because if he did file a chargeback, it would hurt our merchant ratings. I hated the black mail but appreciated the opportunity. You stay in business long enough, you hear the word "Chargeback" but you never get such a nicely packaged blackmail.

I figured we were already cheated by him. Why not at least save a chargeback claim. So we tried to process his refund. The refund window with Paypal had lapsed. I called the guy again and got his bank account info. We just wired him the money.

Next business day he filed a chargeback. I could not believe what just happened.

Anyway, good thing our outgoing wire clearly mentioned this payment as a refund. Paypal came around and released the chargeback.

Phew.

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