What is a chargeback?
Whether you are using Cleeng Merchant our have your own payment provider, chargebacks can still affect your business. A chargeback occurs when a viewer contacts their banking provider to initiate a refund for a transaction made via their account. Chargebacks arise for a variety of reasons: a customer is dissatisfied with their purchase, charges were made illegally via their credit card or account or they have simply changed their mind.
Disputes may be caused by several factors. Our experience shows that there are cases where users do not realize they are on auto-renewal or that someone else in the family has used the same account/card for a certain transaction.
Chargebacks exist to protect viewers and help protect against card or account charges that occur without the consent of a card or account owner. This means that you cannot prevent chargebacks from happening (actually - no online merchant can). But if you are using Cleeng Merchant we automatically submit a dispute of the chargebacks and we sometimes win.
How Cleeng Merchant helps to minimize and even prevent chargebacks?
The best way to deal with chargebacks is to prevent them from happening in the first place.
- Firstly we suggest providing accurate descriptions of your products on your website. We show how to do it here
- Once Cleeng's finance team has been informed of a chargeback claim, we respond to the financial institution as quickly as possible and provide them with proof of customer receipts and additional information to show the customer received the service they paid for. A limited amount of time is available to resolve a chargeback.
- If Cleeng is successful in defending the chargeback the customer will be notified by their financial institution and the claim will be closed
- On average 50% of chargebacks are successfully defended
What happens if a chargeback is awarded to the viewer?
If a financial institution awards a chargeback in favour of the viewer:
- The funds are automatically deducted from Cleeng and paid back to the viewer
- Cleeng automatically updates your financial information within the dashboard (you will be able to see this within your cancellation report)
- The viewers access is automatically revoked
Please see the European and American chargeback guidelines: