The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

HELP - Client WINS Chargeback Dispute Despite Him Lying?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

GetShitDone

Bronze Contributor
Dec 20, 2012
404
310
138
Vancouver, Sydney, London
I run a digital marketing agency where my clients pays a monthly payment every month.

A former client (despite us performing the work) filed a dispute stating "fraud" to his bank to get his money back. I submitted my evidence to prove him wrong, yet the bank still sided with him.

Even though I had signed agreements, email conversations, proof of work, etc.

1) How can I prevent a client from being able to file a dispute and win in the future even if I'm in the right? (Eg. anything I can get them to do before they sign on board, any key evidence I should of submitted, etc)

2) Also, Stripe automatically took the $ out of my account before the dispute was decided.. so should I move my current $ into a separate bank account that isn't connected to Stripe to prevent this in the future?
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Einfamilienhaus

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
179
356
182
Why does your client has the feeling of getting betrayed?
 

BizyDad

Know Thyself
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Oct 7, 2019
822
2,891
639
Phoenix AZ
Sadly this happens sometimes. It is a pretty extreme step for the client. I've largely avoided it by being in regular communication with clients, especially at the beginning of the engagement. This gives me a good feeling about who are the good clients, and who are the ones likely to stab me in the back. Thankfully, that last type are the exception.

so should I move my current $ into a separate bank account that isn't connected to Stripe to prevent this in the future?

This might lead to your bank still allowing the withdrawal and taking you negative, thus incurring overdraft fees on top of the rest. I wouldn't do it.

At this point, I think your remaining option is small claims court or take him to a collection agency.
 

Kung Fu Steve

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Jul 8, 2008
2,214
5,468
1,316
Road Warrior
I've noticed a huge uptick in chargebacks (even when we offer to refund in full) -- it seemingly is the Facebook mob's advice. "Just chargeback, you have every right, yadda, yadda"

Cost of doing business I guess.

We try to fight each one but offer their money back.

We don't want satisfied customers, we want raving fans.

Fire that customer, they'll never be a fan.
 

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 23, 2007
31,423
117,696
3,751
Fountain Hills, AZ
Welcome to the cost of doing business, especially with Sidewalkers and "everything should be free" types.

The general public has let the phrase "The Customer is King" gone to their collective heads, so much so, they can eat the entire meal, dessert included, and then ask for a refund because their salad was missing cucumbers.

Instead of giving the dispute energy and angst, its better to suck it up and move on.
 

Bekit

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Aug 13, 2018
864
4,030
983
Couple of tips based on experience working with a marketing agency that didn't provide great service and held clients' feet to the fire and thus got a LOT of chargebacks (and they disputed every single one) -

It's easier for the merchant to win a chargeback if the client used AmEx.

It's easier for the merchant to win a chargeback if the client paid via ACH instead of a card.

It's easier for the client to win a chargeback if the client used Visa or Mastercard.

Visa and Mastercard's policies for when the client wins the chargeback? Often nonsensical.

Example:

A friend of mine owns a local internet service provider.
  • A client signed up for service.
  • The client got a free install based on a promotion the company was running ($100 value).
  • Month 1, the client got an extra 60% discount on their first month of service.
  • Month 2, the client paid their bill at the normal rate.
  • Month 3, the client's card didn't go through.
  • By month 4, the company contacted the client to let them know they would be disconnected if they didn't receive payment.
  • The client then initiated a chargeback on their Month 2 bill, claiming the charge was fraudulent.
  • The company provided LOADS of proof to Stripe - client communication, proof that the service was provided, proof that the client requested the service, etc etc etc.
  • And they ruled in favor of the CLIENT for the chargeback.
Really??

By this point, the client has received 4 MONTHS of internet service for a grand total of $20.

Any normal client would have been charged over $300 by that point.

This was a UTILITY, for crying out loud, so it was not even a situation where the client could make some kind of argument that "But I didn't get results!!! :humph:" like they might get away with for marketing services.

So like everyone above has said - COMPLETELY chalk this up as a cost of doing business.

Don't take it personally.

And do like @BizyDad said and have some extensive conversations at the beginning of the onboarding process that helps you to vet the bad clients and fire them before they ever become a client.

(@BizyDad I bet you have some great tips of what your process looks like and what questions you ask during the sales conversation to suss out clients who are going to be "bad eggs" and steer them in another direction...)
 

GetShitDone

Bronze Contributor
Dec 20, 2012
404
310
138
Vancouver, Sydney, London
Sadly this happens sometimes. It is a pretty extreme step for the client. I've largely avoided it by being in regular communication with clients, especially at the beginning of the engagement. This gives me a good feeling about who are the good clients, and who are the ones likely to stab me in the back. Thankfully, that last type are the exception.



This might lead to your bank still allowing the withdrawal and taking you negative, thus incurring overdraft fees on top of the rest. I wouldn't do it.

At this point, I think your remaining option is small claims court or take him to a collection agency.

I might just disconnect Stripe from my bank account temporarily then until I figure everything out. I know Stripe would then give me a negative balance in Stripe, but I can just use another payment processor then.

I'm actually considering doing international bank transfers instead to prevent card disputes. Perhaps using something like TransferWise?

Welcome to the cost of doing business, especially with Sidewalkers and "everything should be free" types.

The general public has let the phrase "The Customer is King" gone to their collective heads, so much so, they can eat the entire meal, dessert included, and then ask for a refund because their salad was missing cucumbers.

Instead of giving the dispute energy and angst, its better to suck it up and move on.

Couple of tips based on experience working with a marketing agency that didn't provide great service and held clients' feet to the fire and thus got a LOT of chargebacks (and they disputed every single one) -

It's easier for the merchant to win a chargeback if the client used AmEx.

It's easier for the merchant to win a chargeback if the client paid via ACH instead of a card.

It's easier for the client to win a chargeback if the client used Visa or Mastercard.

Visa and Mastercard's policies for when the client wins the chargeback? Often nonsensical.

Example:

A friend of mine owns a local internet service provider.
  • A client signed up for service.
  • The client got a free install based on a promotion the company was running ($100 value).
  • Month 1, the client got an extra 60% discount on their first month of service.
  • Month 2, the client paid their bill at the normal rate.
  • Month 3, the client's card didn't go through.
  • By month 4, the company contacted the client to let them know they would be disconnected if they didn't receive payment.
  • The client then initiated a chargeback on their Month 2 bill, claiming the charge was fraudulent.
  • The company provided LOADS of proof to Stripe - client communication, proof that the service was provided, proof that the client requested the service, etc etc etc.
  • And they ruled in favor of the CLIENT for the chargeback.
Really??

By this point, the client has received 4 MONTHS of internet service for a grand total of $20.

Any normal client would have been charged over $300 by that point.

This was a UTILITY, for crying out loud, so it was not even a situation where the client could make some kind of argument that "But I didn't get results!!! :humph:" like they might get away with for marketing services.

So like everyone above has said - COMPLETELY chalk this up as a cost of doing business.

Don't take it personally.

And do like @BizyDad said and have some extensive conversations at the beginning of the onboarding process that helps you to vet the bad clients and fire them before they ever become a client.

(@BizyDad I bet you have some great tips of what your process looks like and what questions you ask during the sales conversation to suss out clients who are going to be "bad eggs" and steer them in another direction...)


For sure and completely agreed with you guys after weighing it out. I won't even go after the dispute further.

With that said, CURRENTLY I have 2 current clients who I feel 1 of them may dispute soon.. so I want to prevent this (I have significantly upgraded our customer service + results we deliver for our recent clients) - however these current 2 clients may file a dispute due to us not getting them results despite us having a no refund policy.

To prevent another dispute from auto-withdrawing $ from my bank account - I am considering disconnecting my bank account from Stripe and using a different payment processor for all my new clients (who I am confident I'll get results for as we even have a money back guarantee now)

---

Thoughts on what happens if I have a negative balance in Stripe from disputes that I lose DESPITE me having proof that there are no refunds in a signed contract, proof of work, etc?

I am guessing Stripe will send a collections agency after me, but again I would have proof to fight it in court.

I just don't want to lose another $4,000 from an auto-withdrawal from a Stripe dispute even if I'm in the right contract wise.
 

Capitalist_Cat

What Legacy Will You Leave Behind?
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Sep 6, 2020
54
109
128
29
United States
Hey I am sorry that happened, that super sucks. But I am a tad bit confused. Are you worried your two current clients are going to chargeback with the excuse they didn’t get results? Or do you think they’ll chargeback because you haven’t gotten them results?
 

BizyDad

Know Thyself
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Oct 7, 2019
822
2,891
639
Phoenix AZ
Couple of tips based on experience working with a marketing agency that didn't provide great service and held clients' feet to the fire and thus got a LOT of chargebacks (and they disputed every single one) -

It's easier for the merchant to win a chargeback if the client used AmEx.

It's easier for the merchant to win a chargeback if the client paid via ACH instead of a card.

It's easier for the client to win a chargeback if the client used Visa or Mastercard.

Visa and Mastercard's policies for when the client wins the chargeback? Often nonsensical.

Example:

A friend of mine owns a local internet service provider.
  • A client signed up for service.
  • The client got a free install based on a promotion the company was running ($100 value).
  • Month 1, the client got an extra 60% discount on their first month of service.
  • Month 2, the client paid their bill at the normal rate.
  • Month 3, the client's card didn't go through.
  • By month 4, the company contacted the client to let them know they would be disconnected if they didn't receive payment.
  • The client then initiated a chargeback on their Month 2 bill, claiming the charge was fraudulent.
  • The company provided LOADS of proof to Stripe - client communication, proof that the service was provided, proof that the client requested the service, etc etc etc.
  • And they ruled in favor of the CLIENT for the chargeback.
Really??

By this point, the client has received 4 MONTHS of internet service for a grand total of $20.

Any normal client would have been charged over $300 by that point.

This was a UTILITY, for crying out loud, so it was not even a situation where the client could make some kind of argument that "But I didn't get results!!! :humph:" like they might get away with for marketing services.

So like everyone above has said - COMPLETELY chalk this up as a cost of doing business.

Don't take it personally.

And do like @BizyDad said and have some extensive conversations at the beginning of the onboarding process that helps you to vet the bad clients and fire them before they ever become a client.

(@BizyDad I bet you have some great tips of what your process looks like and what questions you ask during the sales conversation to suss out clients who are going to be "bad eggs" and steer them in another direction...)

You know me so well. I'll share, with the disclaimer that this is what works for me to ferret out clients that I clash with, and are likely to screw me over. YMMV. At this point I look out for a few key things.

For starters, anyone who talks braggadociously about their honesty or their Christianity is a red flag. I have many honest and Christian clients, but I have broken this rule twice for each braggart type and all four people screwed me. Fool me once...

How angry is this person? How do they speak about times they were angry? If they sound like the vindictive type, especially if they are proud of their spite, I walk.

The last one is a double standard, but whatever. I pay attention to how men talk about women. The playboys who see women as a piece of meat are yellow flags. A man who says derogatory things about his women (or ex) is a red flag. These are usually signs that the person lacks respect and has issues honoring commitments.

But I have found that a "bitter/angry" woman doesn't necessarily translate that over to business.

How do I ferret these things out...

For starters I always ask what their experiences have been like with other agencies. I ask specifically what they liked and didn't like most. That reveals a lot.

I'll also ask about switching access to accounts and how to handle that (should I remove the old agency, that kind of thing). This gives further opportunity to see how trusting the client is.

I'll also ask how they intend to pay. Most people don't bat an eye at that question. They usually have a preferred method or they'll ask me what I prefer or how it normally works. But the shady types are the ones who assure me I'll get paid. (That's when the honest and Christian stuff comes out).

The rest comes out in conversation, how was your weekend, do anything fun, do you have any family, etc. If I'm on the fence about someone's personality, I might share something that irks me and listen to them share what irks them (and how they handle it). Telemarketers or bad drivers does the trick. If they rant in our first meeting, I'm usually referring them to a bigger agency.

Lastly, NY or NJ folks get a pass on the "sounding angry" flag. Those people just make me homesick and might even get a discount.

I might just disconnect Stripe from my bank account temporarily then until I figure everything out. I know Stripe would then give me a negative balance in Stripe, but I can just use another payment processor then.

I'm actually considering doing international bank transfers instead to prevent card disputes. Perhaps using something like TransferWise?






For sure and completely agreed with you guys after weighing it out. I won't even go after the dispute further.

With that said, CURRENTLY I have 2 current clients who I feel 1 of them may dispute soon.. so I want to prevent this (I have significantly upgraded our customer service + results we deliver for our recent clients) - however these current 2 clients may file a dispute due to us not getting them results despite us having a no refund policy.

To prevent another dispute from auto-withdrawing $ from my bank account - I am considering disconnecting my bank account from Stripe and using a different payment processor for all my new clients (who I am confident I'll get results for as we even have a money back guarantee now)

---

Thoughts on what happens if I have a negative balance in Stripe from disputes that I lose DESPITE me having proof that there are no refunds in a signed contract, proof of work, etc?

I am guessing Stripe will send a collections agency after me, but again I would have proof to fight it in court.

I just don't want to lose another $4,000 from an auto-withdrawal from a Stripe dispute even if I'm in the right contract wise.

Wow.

Stripe is just a processor. They take what evidence you provide and pass it onto the credit card issuer and they are the ones to make the determination.

So instead of dealing with it, talking to your obviously dissatisfied client, and smoothing it out, you would just screw another business and stick them with the bill? And you want us to help you with that?

What a weasel.

You're no better than the guy who supposedly screwed you. You might be right "contract wise", but it sounds like you have a habit and history of over charging and under delivering.

Which I probably would've predicted given you announced you were starting this marketing agency one week, and the following week came back and asked how to get clients.

Go back and make your client $40k instead of asking us how to keep ripping people off.

Get Shit Done.

Benefit of the doubt... You're doing your best and really have "upped your results" already (which tells me that for a while your results weren't worth what you were charging and you knew it). So just level with this problem client that you screwed up on. I forgot, there's two. Plus the one who allegedly "lied".

Anyways, go back to them and explain that you fell short, tell them how you fixed the problem, and offer them a 50% discount on their next month's fee. Offer a discount on the next two months if you have to.

You show that level of honesty and transparency and accountability to a client, and they'll stay with you for another year.

Or you could take the greedy way and just detach that stripe account and convince yourself you deserve that $4k because of your obviously unenforceable no refund policy.

Best case scenario:

After you've screwed stripe, PayPal, and square, you'll have to sign up for a locked in two-year contract to get ripped off by a merchant processor.

So at this rate, you probably have a couple more years to figure out how to actually get results for your clients, before it gets really hard to run away from chargebacks.

Worst case scenario:

You already agreed to terms with stripe. So even if you disconnect now, they still have your account number and routing number and take the money anyway. After all, they have contracts too.

All this time on the forum and you still haven't learned the basic rule of business.

Solve their problem. You aren't holding up your end of the bargain.

@Bekit I forgot to add people who openly admit screwing others to the list of deal breakers. The ethics of some people are just so incredible.
 

GetShitDone

Bronze Contributor
Dec 20, 2012
404
310
138
Vancouver, Sydney, London
You know me so well. I'll share, with the disclaimer that this is what works for me to ferret out clients that I clash with, and are likely to screw me over. YMMV. At this point I look out for a few key things.

For starters, anyone who talks braggadociously about their honesty or their Christianity is a red flag. I have many honest and Christian clients, but I have broken this rule twice for each braggart type and all four people screwed me. Fool me once...

How angry is this person? How do they speak about times they were angry? If they sound like the vindictive type, especially if they are proud of their spite, I walk.

The last one is a double standard, but whatever. I pay attention to how men talk about women. The playboys who see women as a piece of meat are yellow flags. A man who says derogatory things about his women (or ex) is a red flag. These are usually signs that the person lacks respect and has issues honoring commitments.

But I have found that a "bitter/angry" woman doesn't necessarily translate that over to business.

How do I ferret these things out...

For starters I always ask what their experiences have been like with other agencies. I ask specifically what they liked and didn't like most. That reveals a lot.

I'll also ask about switching access to accounts and how to handle that (should I remove the old agency, that kind of thing). This gives further opportunity to see how trusting the client is.

I'll also ask how they intend to pay. Most people don't bat an eye at that question. They usually have a preferred method or they'll ask me what I prefer or how it normally works. But the shady types are the ones who assure me I'll get paid. (That's when the honest and Christian stuff comes out).

The rest comes out in conversation, how was your weekend, do anything fun, do you have any family, etc. If I'm on the fence about someone's personality, I might share something that irks me and listen to them share what irks them (and how they handle it). Telemarketers or bad drivers does the trick. If they rant in our first meeting, I'm usually referring them to a bigger agency.

Lastly, NY or NJ folks get a pass on the "sounding angry" flag. Those people just make me homesick and might even get a discount.



Wow.

Stripe is just a processor. They take what evidence you provide and pass it onto the credit card issuer and they are the ones to make the determination.

So instead of dealing with it, talking to your obviously dissatisfied client, and smoothing it out, you would just screw another business and stick them with the bill? And you want us to help you with that?

What a weasel.

You're no better than the guy who supposedly screwed you. You might be right "contract wise", but it sounds like you have a habit and history of over charging and under delivering.

Which I probably would've predicted given you announced you were starting this marketing agency one week, and the following week came back and asked how to get clients.

Go back and make your client $40k instead of asking us how to keep ripping people off.

Get Shit Done.

Benefit of the doubt... You're doing your best and really have "upped your results" already (which tells me that for a while your results weren't worth what you were charging and you knew it). So just level with this problem client that you screwed up on. I forgot, there's two. Plus the one who allegedly "lied".

Anyways, go back to them and explain that you fell short, tell them how you fixed the problem, and offer them a 50% discount on their next month's fee. Offer a discount on the next two months if you have to.

You show that level of honesty and transparency and accountability to a client, and they'll stay with you for another year.

Or you could take the greedy way and just detach that stripe account and convince yourself you deserve that $4k because of your obviously unenforceable no refund policy.

Best case scenario:

After you've screwed stripe, PayPal, and square, you'll have to sign up for a locked in two-year contract to get ripped off by a merchant processor.

So at this rate, you probably have a couple more years to figure out how to actually get results for your clients, before it gets really hard to run away from chargebacks.

Worst case scenario:

You already agreed to terms with stripe. So even if you disconnect now, they still have your account number and routing number and take the money anyway. After all, they have contracts too.

All this time on the forum and you still haven't learned the basic rule of business.

Solve their problem. You aren't holding up your end of the bargain.

@Bekit I forgot to add people who openly admit screwing others to the list of deal breakers. The ethics of some people are just so incredible.

Huge mischaracterisation.

My fulfilment team didn't deliver results, so I hired a new team with better processes on my end for quality control - so I'm not worried about this happening to new clients. There's a reason I've upgraded my service.. to get better results for my clients as the old method we were using has become out-dated.

Not trying to screw anyone. All I'm trying to do is prevent $4K from being automatically taken out of my account when my end of the bargain was to deliver a service (with no refund involved) which we did. I just had 2K get taken out of my account which comes out of my own pocket (as a majority of the 2K the client initially paid me had gone to costs)

We just weren't able to deliver results, but we still delivered the service. I'm not saying what happened is right, but I think you're mischaracterising me by saying I'm trying to screw someone over here.

You're acting as if I'm the first agency in the world to fail to deliver results and classifying it as screwing someone over. What happened isn't ideal, but it's not like I ran away with thousands of dollars. We never promised any specific results (eg 100 leads per month guaranteed), but we did deliver the service as apart of the bargain as you say.

My plan was in fact to give a freebie/discount of some sort to this client - but I need to be prepared for the worst in case they just do a dispute regardless (As we have a no refund policy as apart of our agreement).

I'm preparing for both outcomes here.

It would be naive to think that they'll just say "Yeah its okay, I'll stay with you for a year" if I act out of good faith when I give them the freebie/discount. I have to prepare in case they do a dispute regardless - hence why I'm trying to prevent an auto withdrawal from my bank account.

Anyways, I will take the advice aspect of your post onboard which is offering a 50% discount with an emphatic message RE what happened, so thank you for that part.

I may even offer a 50% discount on our new (higher priced) service which has the money back guarantee. With that said, I'm definitely not going to be un-prepared and expect him not to do a dispute chargeback.

PS: We're offering a money back guarantee now for new clients too if that gives you an idea that I'm trying to not "screw" anyone over with our service's new upgrade.

Hey I am sorry that happened, that super sucks. But I am a tad bit confused. Are you worried your two current clients are going to chargeback with the excuse they didn’t get results? Or do you think they’ll chargeback because you haven’t gotten them results?


Thanks for that. I'm worried they'll chargeback with the excuse they didn't get results as they currently aren't getting them due to our marketing method that no longer works (Our new one does which our new clients are getting as we just launched it last week).

Just had 2K auto-taken out of my bank acc and lost the dispute even when I was in the right legally (no refund clause, proof of work delivered, etc). But the guy disputed it as "Fraud" which is ridiculous.

So I'm worried these 2 current clients might do the same - so while I am preparing to give them some sort of freebie/discount, I need to figure out a solution on what to do if they do a dispute like the above guy did.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Last edited:

Dark Water

Gold Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Mar 25, 2014
510
1,231
391
Boston
Lastly, NY or NJ folks get a pass on the "sounding angry" flag. Those people just make me homesick and might even get a discount.

I laughed, I used to sell home and auto insurance and New Jersey happened to be one of my states. What a transition it was from sweet talking some southern homemaker from Alabama one minute and then hopping on a call with an abrasive New Jersey personality the next. It is so bad that you actually have to give pushback and ruffle some feathers otherwise your chance of working with them is less. And I say that as someone from Boston.

You have to temper your expectations OP. Chargebacks come with the territory of failing to deliver results. If I were in your shoes, I'm not sure the right approach would be to make a thread on how to prevent chargebacks from happening, but rather buckling down and going all-in on trying to overdeliver for the current two clients I have so that I don't even have to worry about chargebacks. You are in the game right now and the clock is ticking. Go win it.

As with everything in life, shift that locus of control from external (clients screwing you over, no control, payment processor not agreeing with you) to internal (we deliver results every single time, and go above and beyond, so clients bonus us instead of charging back).
 

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 23, 2007
31,423
117,696
3,751
Fountain Hills, AZ
URRENTLY I have 2 current clients who I feel 1 of them may dispute soon

Why are there disputes?

A 50% dispute rate says that you are OVERSELLING and UNDER DELIVERING.

We just weren't able to deliver results, but we still delivered the service.

You answered my question.

You oversold and underdelivered.

Looks like the chargebacks aren't the issue, it's your marketing, or your execution.

You are selling PERCEIVED VALUE, not ACTUAL VALUE, hence the chargebacks.
 

Steven Pham

New Contributor
Jan 21, 2021
10
10
12
I've noticed a huge uptick in chargebacks (even when we offer to refund in full) -- it seemingly is the Facebook mob's advice. "Just chargeback, you have every right, yadda, yadda"

Cost of doing business I guess.

We try to fight each one but offer their money back.

We don't want satisfied customers, we want raving fans.

Fire that customer, they'll never be a fan.
Interesting, it haven't looked at it that way. In short, the customer is right but within reasonable realms of accommodation for the merchant.

Why are there disputes?

A 50% dispute rate says that you are OVERSELLING and UNDER DELIVERING.



You answered my question.

You oversold and underdelivered.

Looks like the chargebacks aren't the issue, it's your marketing, or your execution.

You are selling PERCEIVED VALUE, not ACTUAL VALUE, hence the chargebacks.
Hmmm, under-promising and over-delivering is the way to go then since your client will be surprised that the expectations have been exceeded. I have since learned to not over-hype my work either because the viewers will be disappointed if the video, like you mentioned, did not match up to the hype.
 

Johnny boy

Platinum Contributor
Speedway Pass
May 9, 2017
1,040
4,796
1,127
24
Washington State
I run a digital marketing agency where my clients pays a monthly payment every month.

A former client (despite us performing the work) filed a dispute stating "fraud" to his bank to get his money back. I submitted my evidence to prove him wrong, yet the bank still sided with him.

Even though I had signed agreements, email conversations, proof of work, etc.

1) How can I prevent a client from being able to file a dispute and win in the future even if I'm in the right? (Eg. anything I can get them to do before they sign on board, any key evidence I should of submitted, etc)

2) Also, Stripe automatically took the $ out of my account before the dispute was decided.. so should I move my current $ into a separate bank account that isn't connected to Stripe to prevent this in the future?

As a business owner who has dealt with chargebacks, bad customers, lying, contracts, etc.. I am qualified to offer my opinion on this.

Payment processors for businesses are not your friend.

Stripe

Quickbooks

Square

Paypal

and many more.

They are like the evil stepmom who hates your guts and wants you out of the picture.

These are "business" payment platforms. Any business payment platform will treat you like shit and allow the banks and credit card companies to take your money away. It's blatant theft. I would pay someone a lot of money to go slap the shit out of customers who have stolen from me. Anyways....

Here are the ways you can be paid:

1. Cash: not feasible for your business.

2. Bitcoin: not really feasible for your business. Customers will think it's fishy and not want to do it.

3. Credit Card
a. Paid with a business payment processor like stripe or quickbooks: vulnerable to chargeback abuse. Avoid if possible
b. Paid with a PERSONAL payment processor like VENMO or CASHAPP. These apps do not have "consumer protection" (aka "f*ucking over business tools") in place so they basically never allow chargebacks because they aren't for "business" transactions anyways. No "disputes" (pretty sure).

4. ACH or bank transfer
a. Paid with a business payment processor like strip or quickbooks: same as cards. Avoid.
b. Paid with a PERSONAL payment processor such as ZELLE: No chargebacks. Easy to do. It's a straight up transfer from their bank account to yours and there should not be any ability for them to fraudulently steal money from you.

5. Wire transfers: tedious, customers are skeptical, not feasible.

6. Checks sent in the mail: Highly recommended. Not echecks, but physical checks. Have them send it to you in the mail each month.

Here's what I would do:

When you customer asks about payment, you say "we take credit cards, checks and bank transfers. Which works with you"?

If they say...

Credit card: Say "Great, we use either venmo or cash app to process the payments. So I'll just need you to download either of those apps and you can securely send us the payments each month. It's much more secure and straightforward than you sending us your credit card info over the phone. Does that work?"

Check: Say "Great", here is the PO box address and here is the name to make it out to"

Bank transfer: Say "Great, we use zelle to process bank transfers. It's an efficient way to process bank transfers that your bank has probably already told you about. It's much more secure than giving us your bank account information over the phone. Does that work?"

I have made a website where you can leave a review of customers or employees that you've had so that other businesses can avoid them as well. I would like to know of the shitty customers you've had so if I every sign them up for any services or take them on as a client, I can avoid their bullshit and move on to someone else. It's karenreview.com and it's free to write reviews and it only costs anything to read other peoples' reviews of customers. I have yet to advertise it so it's a little sparse on reviews but I already have uploaded a directory of people into it. Also looking for feedback if it's not working good enough or if you think it could be improved.
 

Sponsored Offers

  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Thanks for clearing that up. What do you recommend for those who are still in the process of...
  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
I thought I would post up the first video from the newest 2021 program content... Just a...
  • Sticky
MARKETPLACE Kill Bigger Incubator
I have not offered one of these in a while, but it looks like I have time to take on an...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Hi Lex, I looked at several options including Kajabi and settled on the Divi theme on Wordpress...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Are you looking for a new, lesser-known but potentially very lucrative source of leads to your...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
The story is BASED UPON a true story. The details aren't entirely accurate or from a distinct...



Forum Sponsor

Grow an online business:
- Start immediately!
- Master business skills!
- 100+ Fastlane students enrolled!
Review & Details >

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom