 Reduce chargebacks up to 95% how to handle them effectively. You know, last year, this is 2021, last year was 2020. 2020 had some interesting things going on. And I want to tell you about them and I want to tell you how to fix some of these things and chargebacks are part of them. Before I do that, don't forget to hit the subscribe button down there. You got to do that. Don't forget to ring the bell. Turn on all bell notifications so you're notified each and every time I go live or upload a video. So in 2020, get this, sales increased from the previous year, 140%, 140%. Now, why did that happen? Well, because of a lot of brick and mortar businesses weren't getting customers in, they had to turn to going online. And since they turned to going online, it presented a few little problems. Chargebacks are terrible. They sound just like what they are. You get charged back. But the thing is, unlike a refund, you refund money to your customer, your merchant provider actually charges you back. And when they charge you back, that's bad for business. It's bad for them as a merchant. It's bad for you as a company. And that's when the customer actually goes to the credit card company and says, hey, I have a reason to dispute this charge. That really looks bad for your company. You don't want this happening. So in this video, I'm gonna walk you through how to prevent this because if this happens too much to you, you will lose your account and you won't be able to get another merchant account. You won't be able to sell online. So it's really important that you watch this video to the end because if you don't, it could cost you your business. All right, let's jump right into this. Let me explain to you why this is so important. You can lose your account or you become a high risk merchant. What that means is a high risk merchant has to pay higher and higher fees, transaction fees, percentages. And it can wipe out any profit that you have. So it's super important that we knock chargebacks down. And if you do the things in this video, I would say by a good 95%. If you just do the things that I'm gonna tell you what to do in this video. Now, first off, let's look at the numbers and where you wanna be. Chargebacks, they look at the number of chargebacks you have per 100 transactions. For example, they want you to be 1% or less in chargebacks. What does that mean? That means for every 100 sales that you have, less than one chargeback. Now, we don't have any problem with our survival food company, but I was selling courses on a site called ClickBank and we started having chargebacks. But that was such a convoluted thing. What would happen is somebody would become an affiliate to sell our products. And they were a crooked affiliate. They would then buy the products with their own affiliate link and use a stolen credit card to do that. Get the product, get paid as an affiliate and then disappear. And then we find out later on the credit card was stolen and I get charged back. So I've paid them a fee and I've given up my course and I got my money taken back too. You wanna prevent this stuff. This can be super dangerous. That's why this video is probably one of the most important videos you'll ever watch. Number one, I would say, and this is probably one of the biggest problems, make sure your product descriptions are accurate. Your videos are accurate. If people see one thing on your site and it looks like it's high quality and packaged a certain way and it's a certain color and it's a certain size and then they get it and it doesn't match with what your branding is. It doesn't match with what you've described on your site. You're gonna get charged back. So that's the first thing I'll tell you is make sure your descriptions are extremely accurate. Number two, add clear policies to your website. What are your policies? Well, your policies for refunds. How can they get a refund? Your policies for shipping. Your policies for how long it's gonna take to get to them. All these things are super important. If you make all of this clear upfront, you won't have as many problems. You'll have happy customers and you won't get as many charge backs. Number three is customize your statement descriptor. Now what is that? When somebody buys something from your site on their credit card statement, they're gonna see the name of your business. If you have started a business that's ABC marketing and you're selling T-shirts from T-shirts or us websites and they see ABC marketing, they may not know who that is and when they don't know who it is, they're gonna call their credit card company and say, hey, I've got a false charge on my statement. So make sure whatever pops up on their statement matches what you're selling. That's super important. Number four, analyze the sales you have. Analyze the sales you have. If a sale looks fraudulent, you need to check into it before you ship it out. I see this happen a lot where people will get all excited like, oh man, I just sold $3,000 to this customer and my normal sale is 300. Why did that person buy $3,000 worth then? That could be that you are gonna be shipping into a scammer and later on, you're gonna get charged back. So anytime a sale looks out of the ordinary, odd, it's a whole lot higher than your normal sale. That's something you wanna check out before you ship it out to the customer. You'll wanna verify phone numbers and addresses and all that kind of stuff. If you can't do that, I would not recommend you going through with a sale, just refunding it and forgetting it. Number five is respond to refunds quickly. What do I mean by refunds? Now in the beginning, I told you a refund is when you give money back to the customer and a charge back is when the credit card company gives money back to the customer of yours, your money, okay? So it's really important that you respond to refunds. If somebody wants a refund, let's say on one of my courses or some of my food that I sell, I'm gonna respond to them quickly because I wanna find out why. You know, why do you wanna refund? What is the issue? What is the problem? Let them know what your refund policy is. So maybe, you know, they took a course of yours and your refund policy is 30 days after you've been through the course. And we have some refund policies like that. And they say, well, I've had this course for two days and it's no good. Well, we can go into Cartree and I recommend Cartree if you're doing any digital marketing. Look for the link below. You can watch a video on it. But we can look and see did they go through the course because our requirement is that you go through the course and if you go through the course, you don't get the results and 30 days will refund you. So respond to them and let them know what the refund policy is. Some people may not know what the refund policy is. And if you don't respond to them quickly, if they don't hear back from you quickly, they're gonna go to the credit card company and you're getting a charge back. The next thing is make sure that you're easy to get in touch with. That's super important. If it's very hard to get in touch with you, if they can't call you, if they can't email you, if you don't have a help desk and we have all these things, you know, you can call us, you can email us, we have a help desk on each page where they can just click and ask a question. And that way it's easy for them to get a hold of us. And a lot of times that there's a problem and you handle it quickly, they don't wanna refund anymore. You know, once they understand what's going on, but it is super important that you respond to them quickly because if you don't, what they're gonna do is contact their credit card company and you're getting a charge back. Now, let's take a look at why charge backs actually happen. One of the reasons is fraud. Somebody has gotten a stolen credit card and they're buying products from you. That's a hard one to prevent. I know when we had issues at ClickBank with affiliates doing that, where they were a fake affiliate, they were just trying to make money off the affiliate money. What we did is you had to become whitelisted to become an affiliate for our product because that way we knew who you were. They had to fill out forms and give information and give their website and all this. So that was how we prevented that. But, you know, actual fraud on your site, it's very, very hard to do, do the best you can on that. And the flip side of that is maybe they're just trying to rip you off, okay? Maybe some people are just trying to get your product and they're not paid for it. And if that's the case, you'll want to dispute that charge back and show all your documentation for the sales and that you've fulfilled it. The next thing is the service or product was not provided to the customer. Maybe it's your fault, okay? Maybe you promised people certain things and they never got it. And if you're promising more than what you're delivering, you're gonna have a problem. In e-commerce, in any business, you always want to over-deliver and under-promise. So make sure that you're not telling people something that they're not actually getting. Let's say you sell a subscription but you don't tell them it's a subscription and you're charging them $59 a month and they think it's a one-time $59 and then you charge them the next month and they dispute it because they say they didn't know it was a subscription. Make sure it's clear when you sell that person that it is a subscription that they're gonna be paying on a monthly basis. That is one of the biggest reasons I see for charge backs is people really didn't understand what they were getting or the company didn't provide what they said they were gonna provide. The next thing is poor quality products. Maybe you're selling drop shipping products and they aren't the quality that they should be. I see a lot of e-commerce stores have this issue where they will do drop shipping. Maybe it's through AliExpress and they're describing this wonderful product and when the product gets to the customer, it's just junk. Make sure if you're selling a product that you've held it in your hands, okay? You've touched it, you felt it, you knew what it was. By doing so, you're gonna know it's a good product. Make sure that you're selling good quality products. Why sell junk? A lot of people sell junk because they think, well, it's cheap and I can make a lot of money on it. But the thing is, if you have a high chargeback rate, if you have a high refund rate, you haven't gained anything at all. So you don't wanna do that. You wanna make sure they get a quality product and it is as described. And in the end, if you get a chargeback and you feel like it was unjust, you need to dispute the chargeback. This is super important that you do this. You don't want chargebacks on your merchant account. Not a good thing, okay? So you don't wanna do that. And this is true also on PayPal. Respond to things in PayPal. In this video, it's not technically about PayPal, but PayPal is how some people pay nowadays. And if somebody disputes something on PayPal, you need to answer immediately. You need to have all your documentation. You need to show when the sale was made, the proof of the sale, any requirements, any policies that your website has about that particular product. Provide all this to the merchant so that they can see that the sale was valid. If you can provide all this, oftentimes you can get that chargeback reversed. Because when you get a chargeback, they're gonna charge you extra fees for this too, and your rates go up. So if you feel like you're in the right, make sure that you dispute the chargeback. Bottom line, I would say most chargebacks fall in one of two categories. It's fraud. And the other category is lack of response of the merchant. If you respond to people when they're upset, they have a problem. They didn't get something shipped on time or it came late or it was broken or whatever. Take care of your customer, take care of them. If we have something that goes out to a customer and it gets damaged, we just ship them out another one. And you say, well, J.R., I'll lose money on that sale. Yeah, you may lose money on that sale, but would you rather lose money on that one sale? Or would you rather have your rates increase and lose money on every sale from that point forward? So the best thing I would tell you is just take care of your customers, be very responsive, make sure you answer them in a timely manner. And timely to me is that day, if I see it, but no less than 24 hours. And even on the weekends, that's right. A lot of us start these businesses and think, oh, wow, I can start this business and I don't ever have to do anything. That's not true. You have to get involved every single day. You gotta stay on top of this stuff. And if you're not gonna personally stay on top of it, make sure somebody in your company does. Make your customers happy. That's the 100% goal for you is make your customers happy. If you have happy customers, I would doubt that you're ever gonna have many chargebacks. If you're presenting to your customer the truth, they're getting something of quality delivered to them whether it be physical or digital. I think you won't have very many chargebacks. I hope this video helped you out. I hope you see some of the steps that you need to go through. I think it's super important to keep your chargebacks low. We've had the same merchant account now for 11 years and we've never had problems. And that also tells somebody else if I go to apply for another merchant account, oh, I've had this one for 11 years and I've done millions of dollars through this account, I should have no problem getting another account if I needed. So I just wanted to share that with you guys. I hope this helps you out. If you feel like it was useful, do me a favor, give me a thumbs up. Put a comment below. Have you had chargebacks? What have you done to reduce your chargebacks? Are you still getting them? Maybe I can help you out. Put a comment below. If you have some success or failures, I like to hear about it. Don't forget to subscribe also. Don't forget to ring the bell. Turn on all bell notifications so that you're notified each and every time I do a video or I go live. And I also have a $97 course below. You can get it absolutely free. Just click the link and learn. No credit card required. Thank you so much for watching this video. I really appreciate it and I'll see you in the next video. Hey, thanks for watching my video. Don't forget to subscribe to my channel and click that little bell right there so you can be notified every time I do a new video. Also, click on one of those videos there. Keep watching on my channel.