What Do You Do If You Get a Chargeback?

There are three questions you need to ask yourself if this happens.

1. Do I actually have a policy that supports me in the event that this happens?

You need contracts and documentation. You need to have things written down. You need to have a system in place that protects you in the event of a chargeback or dispute.

2. Do I have those systems and what exactly do they look like or what should they look like?

You will need a system that ensures you are right on track and receive authorization from the consumer to charge the card. This may look like a credit card authorization agreement where the consumer fills out the information and/or a system where you are not collecting the consumer’s information and the consumer is imputing it on you. For example, if you have an online course or do online coaching, you need to have a services agreement that outlines what happens with the money once the consumer gives it to you. Is it a subscription service? What happens if the consumer requests a refund? It is scary what can happen if you do not have a written agreement.

3. Did I go into business to make money?

Are you giving people what you say you would give them? Is your stuff actually delivering on what you promised? Why are you getting chargebacks? Is it because you overpromised and undelivered? You need to have a system in place. Being in business is hard. Being in business is overwhelming. However, one of the key things to being a business owner is to be knowledgeable and be open to feedback.

Having systems in place to protect you and your business is so, so important.