What does chargeback mean exactly in terms of business credit card transactions? It is certain that the best kind of business transactions are the ones that go smoothly, without a hitch. However, sometimes the customer is not happy with the product, service, timing, or delivery.
Before a single chargeback can take place, an individual must have an open credit account. To obtain an open credit account, that person needs to complete a credit application to first get the approval.
Many business owners know that they need to be able to accept credit cards to do business. However, they may learn that their company is considered to be high-risk, making getting a credit account that much more difficult.
As a business owner who wishes to build partnerships with online tech support companies, finding the right company to work with is very important.
Olivia’s Search For Online Tech Support
Olivia was getting so many flower pot orders that she needed to hire some virtual assistants. [See more about Olivia in the last post: What Do I Need To Open A Bank Account?] It took a while to find the right company.
At first, Olivia searched on Google for “virtual assistants”. She picked the first company on the list, and hired a VA to do customer service.
After a couple of months, it was clear that this person was not meeting the customer service needs that Olivia wanted… and she asked for a refund.
The virtual assistant company refused to give her a refund, so she requested one through her credit card issuer directly.
After a bit of time, Olivia was refunded.
Dust off and Try Again
Again, Olivia typed in “virtual assistants” in Google and found another company to go with. Olivia made sure that this VA had the correct customer service requirements that she needed.
Things were going well, and then the VA got sick. There was no one to replace her.
When the VA was no longer responding to her emails, Olivia needed to get a refund from the issuing bank. This chargeback was paid for by the issuing bank as part of the cost of doing high-risk business contracts.
After taking on customer service duties herself, Olivia discovered that she needed to hire more than one virtual assistant that worked together – just in case someone got sick.
Third Time’s a Charm
Olivia typed in “virtual assistant team” in Google and found the perfect company to help her with her customer service dilemma. A full team was able to take turns and fill in for each other when someone fell ill. Olivia was very happy that her tech support company was running as intended to fill more orders for lead-free artisan flower pots.
What Does Chargeback Mean to You?
When customers do not receive reasonable action concerning their grievances, they can quickly become frustrated.
Many times, a customer will request a refund from their bank or credit card company directly. With so many refunds being requested each day, a typical bank cannot afford to pursue all of the cases of refund requests. Therefore, the bank may incur the costs associated with a refund.
High-Risk Merchant Account Providers for Tech Support
Banks do not like to suffer the costs for refunds and/or chargebacks. This means that banks become less willing to provide credit card services for certain business types. As an added layer of protection, credit card companies have more rules than ever about which companies they can approve.
The result is that more businesses find themselves moved into the “high-risk” category, resulting in higher transaction fees. Even if your business has never had a chargeback initiated, your business could be penalized by others within your specific industry.
There are not very many merchant account providers that approve tech support companies – especially those that are based online. Due to the sheer number of chargebacks caused by the nature of this industry, tech support is one of the highest-risk industries there is – next to online gambling and online adult services.
High Risk Solutions works with many tech support companies online. Obtaining a high-risk merchant account for tech support is possible by filling out the application.