Chargebacks happen in all areas of e commerce.
A rep from AMazon.com told us that even though books are delivered, and signed for, they still get hit with outrageous
chargebacks. That is again.. with a signature.
A rep from BOA also told us that any dispute regarding an internet transaction will be chargedback to the benefit of the cardholder.
Part of this, you have to remember is our industry is websavvy.
People who are answering your phone calls at the bank may not be. The people who are actually been frauded online and have legit issues have created an atmosphere for if one is bad everyone must be bad.
Chargeback ratios for your processor (Ibill etc..) are different than your Visa chargeback ratios. Yes, consumers have learned they can chargeback but in doing this they must have that credit card canceled and be issued another. Why? Because if the credit card is not canceled the company they are charging back on could just re run the charge.
The banks themselves will only allow a chargeback of 90 days while processors could refund further back if the consumer choses to go to them first. Some probably appease to avoid the chargeback by the bank but some do not.
I would be inclined to believe that since adult does collectively more transactions than say "books or shoes" the percentages would not be in our favor. It's still an e commerece issue and one I don't doubt will need to be ironed out. This is still new territory.. in the large scheme of things...
Katie
