2014: The Year Of The Chargeback? - Page 2 - GoFuckYourself.com

CurrentlySober · 02-27-2014, 02:29 AM

Fiddy Chargebacks?

iSpyCams · 02-27-2014, 07:35 AM

Quote:

Originally Posted by The Porn Nerd

13 Visa, 3 MC.

So you have 16 chargebacks this year? You do not have a chargeback problem. You could literally have 10 times that many (assuming they are split more or less evenly between CCbill and Epoch) and no one would call you out on it. You also don't have enough transaction volume for any analysis to be meaningful. This is why Visa and MC only start looking into your %'s after you reach a certain transaction volume, because at low volumes, chargeback rates are (mostly) meaningless.

It's like if you go to a club on a slow night and there are 3 girls there. 1 is a lesbian and so you determine that that club has like 33% lesbians. You could be right but most likely not, you just don't have enough data to tell.

Since you are far below the threshold for any processing problems I assume you are only concerned about the financial impact of the chargebacks, and the only thing I can say to that is just deal with it. The only way to have zero chargebacks is to have zero sales.

If I was you the ONLY thing I would be concerned about is increasing sales volume. You do NOT have a chargeback problem, you have low sales volume.

The Porn Nerd · 02-27-2014, 10:39 AM

Quote:

Originally Posted by pompousjohn

So you have 16 chargebacks this year? You do not have a chargeback problem. You could literally have 10 times that many (assuming they are split more or less evenly between CCbill and Epoch) and no one would call you out on it. You also don't have enough transaction volume for any analysis to be meaningful. This is why Visa and MC only start looking into your %'s after you reach a certain transaction volume, because at low volumes, chargeback rates are (mostly) meaningless.

It's like if you go to a club on a slow night and there are 3 girls there. 1 is a lesbian and so you determine that that club has like 33% lesbians. You could be right but most likely not, you just don't have enough data to tell.

Since you are far below the threshold for any processing problems I assume you are only concerned about the financial impact of the chargebacks, and the only thing I can say to that is just deal with it. The only way to have zero chargebacks is to have zero sales.

If I was you the ONLY thing I would be concerned about is increasing sales volume. You do NOT have a chargeback problem, you have low sales volume.

Thank you and you are spot on. The low number of chargebacks does not reflect a low sales volume however, as in the 'less than 20 sales a day' area anyway. (Volume is relative.)

I started this thread thinking "I don't mind my chargebacks going up IF my sales went up, too..." but that has not been the case (thus my concern). I was always told to try and keep the CB ratio down around 1.0 or better and, for me, it's been consistently around 0.6%. So when I see it spike 2.5x it's "norm" it raised some flags. Now I'm exploring my own merchant account with my newest operation so it will be great to 'get educated' about how to run my billing better. But sales volume - increasing it - is really about the only thing I focus on these days.

I think bigger sales volume is everyone's concern, isn't it? Or should be? LOL

bean-aid · 02-27-2014, 10:43 AM

Quote:

Originally Posted by pompousjohn

So you have 16 chargebacks this year? You do not have a chargeback problem. You could literally have 10 times that many (assuming they are split more or less evenly between CCbill and Epoch) and no one would call you out on it. You also don't have enough transaction volume for any analysis to be meaningful. This is why Visa and MC only start looking into your %'s after you reach a certain transaction volume, because at low volumes, chargeback rates are (mostly) meaningless.

It's like if you go to a club on a slow night and there are 3 girls there. 1 is a lesbian and so you determine that that club has like 33% lesbians. You could be right but most likely not, you just don't have enough data to tell.

Since you are far below the threshold for any processing problems I assume you are only concerned about the financial impact of the chargebacks, and the only thing I can say to that is just deal with it. The only way to have zero chargebacks is to have zero sales.

If I was you the ONLY thing I would be concerned about is increasing sales volume. You do NOT have a chargeback problem, you have low sales volume.

I've heard the magic number is 15 or lower chargebacks per month... you are not on the radar. 16 or higher is when VISA and MASTERCARD starts poking if percent is higher then 2% US, 3% European.

Sound about right? But that is VISA and Mastercard, that does not account for problems at the gateway level.

iSpyCams · 02-27-2014, 11:27 AM

Quote:

Originally Posted by beaner

I've heard the magic number is 15 or lower chargebacks per month... you are not on the radar. 16 or higher is when VISA and MASTERCARD starts poking if percent is higher then 2% US, 3% European.

Sound about right? But that is VISA and Mastercard, that does not account for problems at the gateway level.

I don't think any of your information is correct. In fact it's completely wrong, sure there are advantages to to having low CB's but there are more important factors. This is exactly the kind of misinformation you get from 3rd party billers and affiliate program owners, who need you to have unrealistically low CB rates so that they can use your squeaky clean traffic to balance their high volume sales channels that are significantly "dirtier".

I am not going to tell you the real situation here since I think there's a reason nobody talks about it publicly but hit me up on ICQ 3 five thr33 496 double oh 7 and I'll clue you in.

The Porn Nerd · 02-27-2014, 11:31 AM

Quote:

Originally Posted by pompousjohn

I don't think any of your information is correct. In fact it's completely wrong, sure there are advantages to to having low CB's but there are more important factors. This is exactly the kind of misinformation you get from 3rd party billers and affiliate program owners, who need you to have unrealistically low CB rates so that they can use your squeaky clean traffic to balance their high volume sales channels that are significantly "dirtier".

I am not going to tell you the real situation here since I think there's a reason nobody talks about it publicly but hit me up on ICQ 3 five thr33 496 double oh 7 and I'll clue you in.

I owe you an ICQ conversation, too.

02-27-2014, 02:29 AM	#51
CurrentlySober Too lazy to wipe my ass Industry Role: Join Date: Aug 2002 Location: A Public Bathroom Posts: 38,609	Fiddy Chargebacks? __________________ My AI Handywork... My Dream Gal... XXX 👁️ 👍️ 💩