MatrixWatch
June 23rd, 2003, 05:03 PM
When a person purchases a spot on a site's matrix list, the site normally has them go through an online (CC) payprocessor. StormPay, PayRequest, Ginix, Paysystems, PayPal, or XComplete, just to name a few. A customer uses his credit card to purchase the spot.
Now, in the last few months we have witnessed a serious setback to the matrix sites: The chargeback. When a matrix customer decides to get his or her money back from the site, they contact the CC processor to get their money back. The setback the the matrix site incurs is the chargeback fee that the CC processor charges to the site's owner.
EmatrixUSA is trying to stop this. They are charging a $100 chargeback fee to those who request a chargeback, hoping to deter future "chargebackers". Now, here is why I think this idea will not work. The people who request a chargeback usually tell the CC company that they did not receive their item (the ebook). (This is an illegal way to get their money back, and we don't support it here at MW). The matrix site has no way to prove or disprove that the customer received their ebooks and the processor grants the customer's request. But then, EmatrixUSA.com will have an additional $100 charged to that person who received a refund completely within CC prcessor policies. Don't you think that the customer is just going to go right back to the pay company and compliain for another refund? The CC processor is going to charge the matrix site interest on that $100 and then they are going to charge more fees to the site after the second chargeback.
I think that if the customers and owners keep heading in this direction though, then someone is going to get in trouble. It is best that a customer simply contacts their bank or credit-card company and tells them the truth. I believe anyone who paid through a credit card can attempt a chargeback as long as they are completely truthful in the claim. The bank will probably investigate what these matrix sites are all about, and look into their own policies to determine whether or not the customer is eligible for a legal chargeback. It will help their awareness about what is out there on the web, and the customer might just be able to get their situation resolved.
So, in summary, if you charge your card to EmatrixUSA and you request a chargeback, just watch your back because you'll get charged back for your chargeback, which you might have to chargeback again against the site that initially charged you before they chargedback your first chargeback.
:D
Now, in the last few months we have witnessed a serious setback to the matrix sites: The chargeback. When a matrix customer decides to get his or her money back from the site, they contact the CC processor to get their money back. The setback the the matrix site incurs is the chargeback fee that the CC processor charges to the site's owner.
EmatrixUSA is trying to stop this. They are charging a $100 chargeback fee to those who request a chargeback, hoping to deter future "chargebackers". Now, here is why I think this idea will not work. The people who request a chargeback usually tell the CC company that they did not receive their item (the ebook). (This is an illegal way to get their money back, and we don't support it here at MW). The matrix site has no way to prove or disprove that the customer received their ebooks and the processor grants the customer's request. But then, EmatrixUSA.com will have an additional $100 charged to that person who received a refund completely within CC prcessor policies. Don't you think that the customer is just going to go right back to the pay company and compliain for another refund? The CC processor is going to charge the matrix site interest on that $100 and then they are going to charge more fees to the site after the second chargeback.
I think that if the customers and owners keep heading in this direction though, then someone is going to get in trouble. It is best that a customer simply contacts their bank or credit-card company and tells them the truth. I believe anyone who paid through a credit card can attempt a chargeback as long as they are completely truthful in the claim. The bank will probably investigate what these matrix sites are all about, and look into their own policies to determine whether or not the customer is eligible for a legal chargeback. It will help their awareness about what is out there on the web, and the customer might just be able to get their situation resolved.
So, in summary, if you charge your card to EmatrixUSA and you request a chargeback, just watch your back because you'll get charged back for your chargeback, which you might have to chargeback again against the site that initially charged you before they chargedback your first chargeback.
:D