What is a Chargeback?
A chargeback occurs when a customer disputes a transaction with their bank or credit card issuer. This can happen for various reasons, including unauthorized transactions, billing errors, or dissatisfaction with the product or service received. When a chargeback is initiated, the funds are returned to the customer, and the business may incur fees or penalties.
Does Readyhubb Assist with Chargebacks?
Yes, Readyhubb understands the importance of resolving disputes promptly and fairly. In cases of chargebacks, Readyhubb assists our busy professionals by responding to chargeback claims on your behalf to ensure a smooth resolution process.
NOTE: Readyhubb serves as the middleman, bridging the gap between you and the cardholder's bank. But here's the deal: Readyhubb doesn't hold the reins when it comes to making decisions in this scenario.
How Can Chargebacks Be Avoided?
While chargebacks can be an inevitable aspect of online transactions, there are measures that businesses can take to reduce their occurrence:
Clear Communication: Ensure that product descriptions, pricing, and terms of service are communicated to customers to avoid misunderstandings.
Quality Products and Services: Provide high-quality products and services to minimize customer dissatisfaction and the likelihood of chargebacks due to product or service issues.
Prompt Customer Support: Offer responsive support to your clients to address any concerns or issues raised promptly. Resolving disputes directly with customers can prevent chargebacks.
Clear terms and conditions of service: This is essential for service providers to prevent chargebacks. By ensuring that clients accept these terms before booking and making them easily visible during the booking process, service providers can establish clear expectations and reduce the risk of disputes. This transparency helps prevent misunderstandings and provides a solid foundation for resolving any issues that may arise during or after the service.
Chargeback process
Our primary objective is to respond to the chargeback claims with all necessary evidence that the cardholder's bank will require to decide in your favor, thereby enhancing your likelihood of winning the chargeback dispute.
Here's the process when a client initiates a chargeback:
Initially, the cardholder contacts their bank to register a complaint. The bank promptly identifies the disputed transaction and reimburses the funds back into the cardholder’s account.
This action triggers a deduction from your Readyhubb account balance, along with a penalty fee charged by Stripe.
We will promptly notify you via email regarding the impending chargeback against your business. Subsequently, you'll have a 7-day grace period to gather all information requested by the cardholder's bank. Information to be provided will include supporting evidence about the transaction, including waivers, invoices, email correspondences, or irrefutable proof of delivery.
Chargeback evidence you can provide:
Screenshots of Communication: Provide screenshots of text messages, direct messages, or email communication with the client to demonstrate efforts made to resolve any issues or concerns.
Evidence of Completed Work: If applicable, include photos or documentation showcasing the completion of the work or delivery of the product/service as agreed upon.
Additional Documentation: Any other relevant documentation or explanation that can support your case and provide clarity on the transaction in question.
By proactively gathering and presenting this evidence, professionals can strengthen their position when disputing chargebacks and increase the likelihood of a favorable outcome.
⚠️ NOTE: Always attempt to resolve issues directly with clients first to prevent them from resorting to their bank for a refund. If a dispute arises from a misunderstanding, clients can request their bank to withdraw the dispute.