Quote:
Originally Posted by **********
This depends on the situation.
The card holder might call Mastercard/Visa and demand a chargeback. They will grant the chargeback without question or at worst, ask him to sign some paperwork.
If the card holder calls CCBill instead, CCBIll will try to solve the problem and let the merchant know about the problem (if the rep is good). Same for Segpay. In the event that a customer had a problem accessing our site, Segpay emailed us to let us know about the problem which let us solve it for the customer and prevent the chargeback.
The best thing to do is to make it very very easy for your customers to contact you. Think about it: If your customer buys a subscription to your site but gets some kind of error, he is completely within his right to charge it back. What you want is for him to call you before CCBill or Visa, so that you can fix the problem for him.
Not only do you prevent the chargeback, but you keep your customer.
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Erm, NO! Visa/Mastercard do NOT just grant a chargeback. There is a process. They card issuing bank puts in a chargeback request to the acquiring bank who then present the chargeback to the merchant (in this case ccbill). This is then approved or rejected. If rejected, the merchant will be asked for supporting evidence for the rejection which will then be passed to the issuing bank. If this is still not enough and the dispute is not resolved the transaction goes to arbitration.
Unfortunately, with memberships on porn sites using a mass billing company like ccbill or even epoch, who process millions of transactions a year, the whole presentation process is way too much to handle and quite possibly all of then are passed back to the issuing bank as approved for refund.
If you want the more stringent approach of validating all chargeback requests and following the mandated card companies rules on how to process a chargeback then you will need to use your own merchant account and handle all customer service related procedures yourself.
I know this is not ideal but imagine that ccbill just processed 5 million transactions a year and of those 5 million, just 1% were chargebacks - that leaves them having to process 50,000 chargebacks a year. This number may seem small in the grand scheme of things but now consider that they need to contact each of their clients to verify and collect supporting evidence to fight this chargeback and you have more than quadrupled the effort required to fight it. It's just easier to pass it back as refund approved!