Preventing Chargebacks As A Freelancer/Agency

[finnegan]

I no longer have the 9-5 anymore and have reverted to freelancing as I set up my own agency site.

What I'd like to know is, how do you prevent clients from charging back to PayPal or whatever if they're not happy with your marketing results?

What SaaS platforms are safe to use where it offers seller's protection for digital services?

 

[eliquid]

If you're looking for a technical answer such as:

1. Use X service
2. Do Y thing

You aren't going to find it really.

You can set up contracts and have them signed to prevent CBs, but if they paid via paypal with an Amex backend, PP and Amex aren't gonna give a shit about your contract. You'll have to lawyer up and that means more money spent.

About the best way to pull this off is take payment in a way that can't be easily taken back. Things like ACH, money order, cash, check....

If you are taking credit card, it's just a risk you will always always take.

So really what you need to do is lower your risk of CB

Best way to do that is over communicate with the client on the realistic goals, outcomes, and expectations. This is key in them understanding you don't have a magic bullet and they are paying for expertise and not a direct outcome ( which you can miss ). This is the most important thing you can do to prevent a CB or unhappy client. Set the goal, outcome, and expectation every time you can with the client.

.

 

[CCarter]

ACH, money order, cash, check

Just an FYI ACH/wire transfers can be reversed within 72 hours. It's one reason Citi has a policy of holding wires for 72 hours. I've had it done to me multiple times - even direct deposits from employers can be reversed in the first 72 hours.

One time I left a company and gave my two week notice and then they said I can leave on Friday when it was pay day so I did. Got the direct deposit in the account, by Monday it was reversed - fun times.

I never bothered wasting my time crying to them about it. They wanted to be sneaky with everything which is one of the reasons I left. I never counted on that last check anyways.

That was the last time I ever worked for someone else.

 

[Ryuzaki]

It can also help to let the client know that you're putting in measures to stop sabotage, like negative SEO and reputation management issues, for example. This makes them aware that such a thing exists, and that you know about it. You're telling them about it in a positive light, but if later on it turns out they're the scumbag type, they'll remember that conversation and think twice.

 

[eliquid]

Just an FYI ACH/wire transfers can be reversed within 72 hours. It's one reason Citi has a policy of holding wires for 72 hours.

Didn't know this, but glad I do now.

I guess if you think you can outlast 72 hours, it would be good.

If you pick ACH/Wire, I'd take @CCarter advice on the 72 hours and build in a 72 hour wait before work performed so you at least get the deposit in and past it's turn-around time.

This might be too far off still, but you could always take BTC. I don't think its reversible.

 

[Steve Brownlie]

Document. Document. Then document some more. And don't take 'cards from a certain provider' if you can avoid it - they're the most likely to not care what documentation you have (as noted earlier in the thread).

I used to work in banking and really the banks might not 'care as much as you'd like' but they certainly don't want to be vehicles for fraud where customers can just do whatever the hell they like either. If you send in a suitably well documented case you'll defend a lot of chargebacks successfully.

Sometimes, though, if you're building a small-medium transaction SAAS I'd posit that you're better of just letting things go unless it's obvious fraud. I know someone who was ridiculously oversold a piece of shit piece of advertising software and they lawyered up instead of allowing a refund (despite incurring no usage/costs their end because... POS). Sure they got their $3k but he must have told nearly 1,000 people in the industry they're a piece of shit by now...

When you consider you pay a few bucks a lead into your funnel, it's probably not +EV to earn $3 a negative lead...

 

[finnegan]

I've been looking more into PayPal since that's the way that most people want to pay their bill.

What I learned was that as a seller, the most protection you have is to set up a monthly retainer using auto-payments via buttons. If you get a bad client and it goes to arbitration, it was said that PayPal almost always sides with the seller in this case.

 

[stackcash]

I've used PayPal for 98% of WordAgents transactions and have never lost money due to a chargeback or arbitration in 7 years.

But, to experience the same, you need to be prepared. You need to clearly explain your terms of service, expectations of the client (as far as what they need to provide), and exactly what is included - down to the most excruciating detail. This needs to be provided and acknowledged by the client before they provide you with payment. If they won't acknowledge the terms, then don't move forward with the sale.

As long as you can show proof of all this to PayPal - you'll never lose an arbitration. I normally show them screenshots of conversations, emails, agreements, and deliverables.

Also - sweet talking the resolution center rep is always a nice touch. Things like, "I know you're really busy, but..." or "Thanks so much for your time and helping to make this part of my business work so smoothly!" ....will go a long way. Normally, people filing a report with the Resolution Center are nasty, arrogant, and/or embellishing the situation. Coming in like you're on the side of the representative helps a lot.

 

[Joe]

About the best way to pull this off is take payment in a way that can't be easily taken back. Things like ACH, money order, cash, check....

+ Bitcoin. No one uses it, but zero chance of you getting that back once the payment is made.