How To Report, Rate And Avoid "Bad" Customers
Maybe You Get Bad Customer Service Because You're a Bad Customer!
I could have taken a picture of you and posted it here to publicly shame you, but I didn't. That's because I am not trying to be vindictive, ma'am. I'd merely like to answer that question you posed. This can be what the politicians call a "teachable moment" for you and everyone like you.
See, I was in line at that particular fast food establishment yesterday. You probably didn't notice me -- I assume you didn't notice any of us from the way you blatantly barged to the front. I was about to tap you on the shoulder and politely explain how lines are supposed to work in a civilized society, but I could tell you were in the throes of an ungodly rage. I figured this must be an emergency. My God, you were practically foaming at the mouth. I thought maybe someone at the counter had killed your dog, or framed you for a murder you didn't commit, or urinated in your oatmeal this morning. Obviously something serious was going on.
Then you suddenly screamed, "NO ketchup! I said NO ketchup!"
Okay, so maybe this wasn't a dire situation. It was a condiment situation. Not exactly life or death, but close enough, I guess. The girl at the cash register looked confused. I don't blame her, some irate middle aged woman just barreled in the door yelling about ketchup. She asked you for some clarification, which was reasonable, but apparently you didn't think so.
"What's wrong with you people?! I just sat in the drive thru for ten minutes and now I have to come in here because you guys can't understand f*cking English! I ordered this burger with NO ketchup but of course I get it with gobs of ketchup. Unbelievable. This happens every f*cking time!"
Wait, it's unbelievable yet it happens every time? Hmmm. And your ketchup specifications are this important to you yet you continually come to the one place in town that apparently has a ketchup obsession? There are literally six other fast food joints within a two mile radius, but here you are at the one place that screws up your order "every f*cking time." Interesting. Logical thinking isn't exactly your forte, is it?
The poor girl at the counter, who likely had no hand in this ketchup fiasco, offered to give you a new burger, plain and dry, just as you prefer. But that wasn't good enough, was it? Their failure to obey your demands must be punished.
"No, I don't want a new burger. Give me your name and the number to corporate. I'm sick of this sh*t. Give me my money back and the number to your corporate office! Why can't I ever f*cking get good customer service?!"
And the exchange went on from there. You of course handled yourself like a woman of culture and dignity, while the fast food employee and her manager tried everything to find a remedy for the Tragic Ketchup Calamity. It ended with you promising to get them all fired as you stormed out. Then I finally had my turn at the counter. I ordered a burger. With extra ketchup.
Now, I replay this back to you because I realize you probably scream profanities at minimum wage customer service representatives every time you run an errand or grab a bite to eat, so you might not recall the specifics of this one incident. And that brings us to the possible answer to that query you posed in the midst of your ketchup rant. You asked: "Why can't I ever f*cking get good customer service?" Well, ma'am, that might have something to do with you being a vulgar, miserable, malicious person. Maybe you get bad customer service because you're a bad customer. Did you ever consider that possibility?
I'm sure some people might take your side. They might come to your defense by telling their own horror stories about all the times when customer service has failed to live up to their standards. Those folks are under the same delusion as you. They think their hallowed "customer" status somehow gives them the right to treat everyone with a uniform and a name tag like garbage. They think their past encounters with sub-par service makes it acceptable for them to fly off the handle about ketchup every once in a while. They think the rules of basic decency and respect come second when they are The Customer. And they're wrong.
We all get a little unwanted ketchup every now and again, and we are all expected to handle it like mature and decent adults. Some of us manage to make it through our whole lives without ever feeling the need to berate restaurant or retail employees over some small and fixable mistake. Other folks, such as yourself, seem to get into a customer service Battle Royale every time they step outside their house. Maybe it's because the universe is against you guys. Or maybe -- just maybe -- it's because you behave like selfish obnoxious bullies.
Just something to think about.
Oh, and I'm betting you actually forgot to say "no ketchup" when you placed your original order. Wouldn't that be a totally expected twist to this captivating saga?
Matt Stachel, a landscape contractor in Feasterville, Pa., created just the website: Nastyclient.com.
“Nastyclient.com is the consequence of a bad customer,” Stachel, 33, said.
Stachel said he has been a contractor “my whole life.”
“I have worked for plenty of bad customers. It really was just frustrating always seeing the one-sided story in the media or on Angie’s List or Yelp: the poor customer who gave a contractor a deposit and the contractor left. Or a restaurant go-er will write, ‘My fork was smudged and I’ll never go back. They stink’.”
For $15.99 a year, business owners can do likewise about negative customer experiences. Business owners can write about customers anonymously, sharing details about customers who, for example, reneged on a contract, warning other businesses to stay away.
“I get there are some bad business owners,” Stachel said. “I’m not saying there are not. But where’s my story of customers that my friends and I deal with?”
He likens the site to a reverse Better Business Bureau.
“We are just a resource for the service provider or business owner to rate and review their customer. We give you the ability to know about your customer before you do an estimate and we empower you with the resource to help get money owed to you when you’ve worked for that customer,” Stachel said.
Stachel reviews every post before it goes on the site, making sure there aren’t profanities and that the member sticks to the facts.
He said many people ask him if there are concerns about slander.
A typical posting on the site from a contractor about a customer reads: “He got me to drop my guard by being extremely nice and polite in the beginning, only to change once additional work was done without a contract. He was very careful not to sign things and be conveniently absent or very busy when asked. We are out tens of thousands of dollars along with other contractors totaling approximately $80,000.00 or more.”
Stachel said he started working on the site in 2009 and it launched in October 2010. Membership recently started ballooning after the Philadelphia Metro newspaper and Philadelphia Inquirer wrote about him earlier this month.
He said membership is around 2,500 and growing, with over 11,000 page views on Monday alone. He tries to work on the website every night from 6 p.m. to about midnight, plus weekends.
Stachel still tries to personally welcome every new member who signs up, but he has some help for now.
“I have an intern,” he said. “This is getting so overwhelmingly crazy.”
Finally... a way to protect yourself and others from unscrupulous customers and at the same time convey kudos to those great and wonderful customers that every business loves to have.
What is this all about and why do we need this site?
Business owners and managers deal with customers every day .. customers are our lifeblood. In fact some time ago I was sent a document entitled "Ten Commandments of Good Business", (Click here to read it), BUT, and unfortunately there is a BUT ... Not all customers are GOOD customers, and the old adage that "The Customer is Always Right" is no longer true!
Why do we say this. Unfortunately although MOST customers are good and honest, there are SOME who have figured out the system, know that businesses usually want to do the right thing, and will threaten and coerce in order to get their own way .. and often "their own way" is an unjustified refund, free services or some other concession that a business may give to "make them go away and not cause trouble.
As a business owner how many times have you given a BAD CUSTOMER a refund, free services or some other concession because they threatened to make trouble for you ... drag you to small claims court, file a complaint with the Better Business Bureau, stop payment on their check, dispute the charge on their credit card bill, etc. etc.?
Unfortunately if a consumer files a complaint against your business to the BBB it still shows up as a complaint even if the BBB finds in your favor and the complaint is resolved ... that is just not fair to you as a business. The same with a customer stopping payment on a check ... even if it was a valid charge. If a credit card is disputed you have to prove to the credit card company that this is a valid charge ... of course the "bad customer" knows its valid but they do not hesitate to try and rip you off ....
Now we business owners have a way to fight back! Now you can tell the "bad customer" that if they put an unjustified mark against your good reputation by filing a complaint with the BBB, or stopping payment on their check or credit card that you will file a complaint with RateMyCustomers.Com for all the world to see ... after a while other businesses will refuse to provide services to these "bad customers!
Customer Service: A Realistic Look At Customer Service
Today customers have become very demanding! Today customers feel that "good customer service" is only "good" when they get exactly what it is that they demand .. even when the demand is completely unreasonable.
For example, this sort of customer will have a window company install a window, and when the contractor is done, the customer decides that because the contractor did not remove the stickers off the window or did not clean up as well as they expected after the installation is done that the contractor owes them a big discount.
This sort of customer will nit pick on everything to get a discount. This sort of customer will call the contractor and complain, say that they did the cleanup themselves and because of that they want a full refund for the window and the installation "because you people did not clean up after yourselves and I had to do it myself".
Even when the contractor offers to send one of his employees to correct the problem but this sort of customer will refuse that and say something like "I have fixed it myself and I expect a full refund for the window and installation since I had to do it myself!"
Of course the contractor refuses to give the customer a full refund, and the customer then files a complaint with the Better Business Bureau! DOES THAT SOUND FAIR? This is a BAD CUSTOMER! This is a customer that had the contractor known that this is the way it would have turned out WOULD NOT DO BUSINESS WITH.
The fair thing to do is for the customer to call with the complaint and then allow the contractor to correct the problem. NOBODY is perfect ...not even the customer with their high and mighty attitude!! The reality is that that sort of customer would be the FIRST to run to the department of labor if THEIR employer informed them that they were going to be docked an hour of pay off their paycheck because a certain thing they did for the place they work at was not PERFECT.
People have to be given the opportunity to correct the problem if there is one. As businesses we often depend on employees, and employees are not perfect. If the business is making a genuine attempt to correct the problem then the ARE providing GOOD CUSTOMER SERVICE ! Good customer service is NOT just giving a customer what they demand no matter how unreasonable the demand. Any business that does that will not be in business long!
This blogsite is designed to RAT OUT these BAD CUSTOMERS ... to make others aware of who they are so that other businesses can steer clear of these BAD CUSTOMERS!
Often these people will take advantage of one business, and eventually when that business gives them the boot they will go on to another business and do the same thing to that business...until that business finally figures them out!
Hopefully as a business owner you will find out ahead of time who these people are and not do business with them. Remember as a business owner you have a right to refuse service to anyone, so we encourage you to do your research and make the decision NOT do do business with the RIP OFF CUSTOMERS!!
Pretty soon these people will realize that we have got their number! They will have one business after the other refuse to do business with them ... which is exactly what they deserve!!
HOW YOU CAN HELP?
Obviously a database of "Bad Customers or Ripoff Customers" is no real help if there is no information in the database. We need you as a business owner or manager to submit the information to us.
Please submit as much information to us as possible. The more documentation we have the better. Be prepared to back up your position if challenged ... because eventually these BAD CUSTOMERS will start to feel the heat and squeal like a cornered pig.
As long as you have facts and dates we can list the problem customers here.
Click here to file a report!
Thank you for your support!!
When you file a report please be sure to include the full name and address of the customer you are rating. If they have moved include last known address and any new addresses you are aware of.
Please include your contact info, business name, type of business, etc. Your name and the name of your business WILL NOT appear in the rating, BUT if the consumer wishes to correct the issue that you have with them or contacts us for further information we may at our discretion provide that information to them.
Thanks for your support!
Click Here to go to our Database of Customer Ratings...
Showing Bad Customers the Door
The customer really isn't always right, especially if your business begins to suffer from having a bad seed on the client list.
"You're fired!" Through his show The Apprentice, Donald Trump has turned this phrase into an instantly recognizable reminder of the perils of not measuring up. In 60 short minutes, we see the lessons of business in their most brutal form: Play nice with the team, add value, pull your own weight, be honest--or be thrown out. But what happens when it's not your employees who aren't following the rules, but your customers?
Conventional wisdom says "the customer is always right"; entrepreneurial need often compels you to take any client that pays. Living by these beliefs can cause you to overlook or excuse a customer's bad behavior, but when your business begins to suffer, it's time to take a page from Trump's playbook.
Just as The Apprentice shows us that there are certain personalities that are born to cause trouble (example: Omarosa, from season one), there are also specific types of clients that will inevitably create problems for your company. And though "the Donald" has the luxury of being blunt when letting an apprentice go, a customer must be handled with more finesse.
Following is a guide to firing those who pay you, including the types of clients to watch out for and some subtle (or not-so-subtle) tactics for letting them go:
The Bad Seed
This is the client that sucks up the resources of your company and spreads negative energy like a cancer. They are the ones that refuse to follow your company's procedures despite repeated requests; the people who buy regularly from you but just aren't satisfied with the product or service you offer. Despite repeated attempts to please them and rectify their unhappiness, the bad seed customer constantly complains that you're not meeting their expectations.
Karen Northrup, founder of Corefino, a Sunnyvale, CA-based firm that provides outsourced accounting and finance for emerging companies, recently found herself with a bad-seed client. Karen recognized that her client's refusal to follow her firm's internal procedures was not only killing employee morale but also delaying growth, since valuable resources were being diverted to manage the situation.
Advice for firing a bad seed? Don't renew their contracts.
A number of years ago Nina Truglio, head of Manhasset, NY-based NF Architectural Designs, found herself with a couple of toddler clients. Inexperienced when it came to working with architects, they demanded unrealistic turnaround times, constant project updates or were unable to make decisions, throwing construction deadlines into disarray. These behaviors caused the toddler clients to abuse the time of Nina's office staff, thereby straining her company's resources.
Advice for firing a toddler? Raise your prices.
The narcissist takes the motto "the customer comes first" to new levels. Narcissists are the bottomless pit clients who have no idea how their behavior affects others, and frankly don't care. The narcissist client operates out of the belief system that its requirements are the only ones that matter, and it gets ugly when you don't immediately satisfy its needs.
Helene Stone, founder of the computer supply company DataLink, found herself dealing with a narcissist. This customer threatened to sue her company if she didn't replace $200,000 worth of equipment it had ordered six months earlier, ignoring the fact that an independent consultant had said that the equipment wasn't defective. Dealing with the demands of this client cost Helene's organization thousands of dollars in out-of-pocket costs and man-hours before the situation was finally resolved.
Advice for firing a narcissist? Be blunt that it's better for you to part ways.
This is the client that asks you to lie, cheat, or otherwise do something illegal to get what it wants. The customer may want you to recognize inflated revenues, invoice a supplier a higher amount and "rebate" the difference back to it, or waive sales tax on a purchase by shipping an empty box out-of-state. This customer doesn't care what the law says--it wants you to find a way around the rules.
Sharon Emek of CBS Insurance found herself in this situation when a customer asked her to lie on his insurance application and give him a kickback. Unwilling to enter the ranks of felons herself to fulfill his demand, she refused his request and immediately dropped his business.
Advice for firing a felon? Let the client go immediately, in writing when necessary. Make sure you document the reason in your files.
To run a successful business, it is important to be able to fire even your biggest customer if its demands pose a threat to your business. But the most essential take-away from The Apprentice on this topic is this: By cleaning house upfront and keeping only the best candidates, Trump shows us that the best strategy of all is to avoid letting problem customers become clients in the first place. In other words, fire before you hire!
How Rude Can Customer's Be?
GR (28 YEARS EXPERIENCE AS RESTAURANT SERVER)
In a Harvard Square restaurant on the night of Harvard’s graduation, the kitchen was completely overwhelmed. One irate customer exclaimed loudly, “Who here thinks the service sucks?” The entire room broke into applause. Even though the kitchen’s meltdown was not the fault of the waiters, I and my waiter peers had to continue to work that room in that unruly, mob-like atmosphere.
Reading Greg’s story validated my obsession with completing this project. No one should be subject to that kind of treatment.
JK (SERVER, HOSTESS, MGR, MAITRE’D 14+ YEARS)
Guests who talk on their cellphone while interacting with you, as if you aren’t important enough for them to get off the phone. So, they continue to stay on the phone, but use hand gestures to communicate with you.
JW (CADDIE 7 YEARS, SALES MANAGER)
I had one guy who told me that I wouldn’t have to caddie if I had a college degree and a real job. (I was in college at the time earning money to pay for school.)
DOROTHY (1YEAR BANK TELLER, 2 YEARS SEARS BILL COLLECTOR, 15+ YEARS BOSTON BEAUTY SUPPLY MANAGER)
A woman’s husband/boyfriend threatened to “chop me up in little pieces” after I refused to accept a product that had explicit instructions to return it to the manufacturer.
ANNIE MAC (ER NURSE 10 YEARS)
During a cardiac arrest a young woman waiting to be seen by the doctor complained that she was waiting a long time. We explained that a patient came in ‘dead’ and we were trying to revive him. She said, “Well if he’s already dead, then to hell with him, I’m still alive!”
JW (10+ YEARS RESTAURANT-RELATED EXPERIENCE)
I don’t have a whole lot of specific war stories, just a long, long memory of people who have ignored me, derided me, claimed they didn’t order items that they did, sent food back that was cooked perfectly, pried into my personal life to my extreme discomfort, expected the waiter to put on a show for them and be their new best friend, got cut off (of alcohol) and threatened to sue, puked everywhere, and generally required bend-over backward service, followed by an inadequate, if existent, gratuity.
MICKEY MAGUIRE, MY COUSIN.(7 YEARS ON A HOT DOG STAND, 2 YEARS DELIVERING FOOD, 4 YEARS ON A COMMERCIAL FISHING VESSEL , 23 YEARS DIRECTOR-ST. FRANCIS HOUSE NYC)
I still remember delivering a box of groceries to a customer on the beach block in Ventnor, NJ. The customer owned a jewelry store on the boardwalk in Atlantic City and was fairly well off. I was 17 years old and had just gotten my driver’s license. I was driving around in a red 1965 Ford Econoline van delivering for Perfetti’s Meat Market, a local butchery and grocery store. I rang the doorbell with a large heavy box of groceries in my hands. The maid let me in. I was in the vestibule of this nicely-appointed house. Suddenly, the customer came swooping down the stairs like a Japanese Zero out of the sun with her hair piled high and stiff on her head(looked like you could bounce a quarter off of it). ‘Don’t you EVER use the front door. Delivery boys use the servant’s entrance in the back.’ She accented ‘delivery boys’ and ‘servants’ as if she were saying, lepers, tramps and other filth of the earth. She made me take the heavy box of groceries down to the van and drive around to the street behind the house and come in the scum bag entrance. It had crossed my mind to just drop that heavy box, let it crash to the floor and walk out. But, I had just gotten the job and I didn’t want to lose it. I made up my mind I would never treat anyone as if they were lesser than me.
SUSAN HERBERT (20+ YEARS AIRLINE CUSTOMER SERVICE)
The worst customer I ever had was a business woman who was running late for a flight. I had already shut the door of the airplane and pulled the loading bridge off. When I very politely told her she had missed the flight, she went completely nuts. She called me a c*** and told me she would be my worst nightmare. She just continued to scream and scream until a supervisor came and physically pulled her away from the podium.
DOREEN DOYLE (34 YEARS IN SERVICE-RELATED INDUSTRIES. SELF-EMPLOYED PROFESSIONAL ORGANIZER SINCE 1993.)
One organizing client would continuously drop papers to be filed on the floor in front of me, making me bend over each time to pick them up off the floor, despite the fact that I had my hand outstretched to accept each piece of paper.
Dealing With Customers Who Abuse Lenient Return Policies
Free shipping and lenient return policies have given online retailing a huge boost. Now, chains are mining their order data to get shoppers to keep more purchases.
Behind the uptick in e-commerce is a little known secret: As much as a third of all Internet sales gets returned, according to retail consultancy Kurt Salmon. And the tide of goods flowing back to retailers is rising. Shipper United Parcel Service Inc. UPS expects returns to jump 15% this season from last year, making them a significant and growing cost for retailers.
The stakes get even higher during the holidays, when return volume peaks. So this year, chains are digging through past transactions to weed out chronic returners, train shoppers to make better decisions or stem buyer's remorse.
Fashion discounter Rue La La, owned by Kynetic LLC, is testing a program that gives customers access to their own purchasing history, and also access to sizing data across its customer base, to help them make better purchases the first time around.
For instance, a customer who has continuously bought the same brand of dress shirts in both a small and a medium might see a note pop up saying: "Are you sure you want to order the small? The last five times you ordered both sizes, you only kept the medium," Chief Executive Steve Davis said.
Some customers might scoff at being told they need a larger size, but Mr. Davis said Rue La La, which last year booked nearly half a billion dollars in revenue, hasn't seen any negative feedback.
"We're definitely not judging," he said. "We are just exposing information we know will help customers make smarter decisions."
Rue La La said dealing with returns cost the company $5 million last year.
Fashion retailing startup Modnique.com is steering some chronic returners away from ordering clothing and shoes by sending them coupons for beauty and jewelry products, items that typically get returned less often. Home shopping network QVC Inc., a subsidiary of Liberty Interactive Corp., is emailing customers after their products arrive to show them how to put them together and use them.
"You're treating customers like a financial portfolio of stocks that can go up and down in value," said Omer Artun, a former marketing executive at Best Buy Co. BBY and CEO of AgilOne Inc. which helps retailers mine customer purchases and predict shopper behavior. "You don't want to treat an unprofitable customer badly, but you do want to treat your good customers better and shower them with positive reinforcement."
As a result, constant returners may see fewer discounts in their inboxes, while their high-spending friends land the better offers.
Retailers are zeroing in on high-frequency returners like Paula Cuneo, a 54-year-old teacher in Ashland, Mass., who recently ordered 10 pairs of corduroy pants in varying sizes and colors on Gap Inc.'s website, only to return seven of them. Ms. Cuneo is shopping online for Christmas gifts this year, ordering coats and shoes in a range of sizes and colors. She will let her four children choose the items they want—and return the rest.
Ms. Cuneo acknowledged the high costs retailers absorb to take back the clothes she returns, but said retailers' lenient shipping policies drove her to shop more.
"I feel justified," she said. "After all, I am the customer."
Companies are also tracking "wardrobers," shoppers who buy items to wear once and return, as well as people who order clothes just for the fun of trying them on at home, without any intention of actually keeping the items.
The biggest cause of returns is size. To help shoppers choose better sizes, Macy's Inc. and Nordstrom Inc. are working with analytics startups such as True Fit Corp. that crunch data to show customers how clothes and shoes will fit them in real life. The companies match up garment specifications and other data from retailers with information provided by shoppers about their favorite clothing items, to generate sizing and fit recommendations.
The rise of free shipping and returns has coincided with a surge in online sales of clothing and footwear. In the past, retailers would charge online shoppers $5 or $10 fees for delivery and returns to cover the cost of shipping and handling. The rise of more lenient policies by online shoe retailer Zappos.com and parent company Amazon.com Inc. helped prompt customers to turn their living rooms into dressing rooms, as shoppers in many cases aren't on the hook for shipping fees in either direction or the back-end cost for returns.
Retailers say people who return a lot also typically buy a lot. But that isn't always the case, and the burden appears to be growing. In the current holiday season, that is something retailers can ill afford, when many are already discounting heavily to win over cautious consumers. Holiday sales are expected to rise by 3.9% from last year, according to the National Retail Federation, a Washington trade group.
Home-shopping network QVC, where returns rose to 19.4% of gross product revenue last year from 18.9% in 2010, recently began sending customers post-purchase emails with instructional videos on, say, how to put a vacuum cleaner together or the best ways to style a scarf.
When the home-shopping network started seeing returns spike for an at-home facial toning device last year, it began emailing purchasers a video with additional instructions on how to use the gadget. The return rate dropped by 30% on the $295 NuFACE Trinity facial-toning device, which claims to tighten skin with a low-level current. QVC estimated it avoided returns on $55,000 worth of merchandise.
In some cases, companies like Amazon offer disappointed customers "appeasements" like gift cards or small discounts on purchased merchandise to persuade them to keep products they would otherwise return.
Recently, a $700 ping pong table from Amazon was delivered to AgilOne's Mr. Artun with a dent. When Mr. Artun called Amazon's customer service hotline, a representative offered him a $140 discount to keep the damaged product. Amazon isn't an AgilOne client.
"We empower our customer-service employees to solve problems directly with our customers," an Amazon spokeswoman said.
Similarly, at Modnique.com, where returned and canceled items can come to as much as 15% of revenue, customer-service agents are allotted a daily amount for such appeasements. They can use discounts, gift cards or other offers to please shoppers that might call in with a problem.
"Sometimes returning the product will actually cost us more," Chief Executive Einaras von Gravrock said. "This allows us to turn a challenge into an additional sale."
Friendly Fraud vs. True Fraud: Chargebacks911 Says $100 Billion Problem Leaves Everyone at a Loss
While fraud and identity theft have long been believed to be a main source of ire for online retailers, the new culprit is often consumers themselves – friendly fraud chargebacks, initiated by online shoppers, are quickly becoming an overwhelming adversary. For retailers, the costs of fraud are ever increasing – merchants are incurring a $279 loss for every $100 of fraud losses, the most since 2010 (1). Despite the fact that many merchants consider chargebacks an unavoidable cost of business, dispute mitigation company, Chargebacks911, says they can often be reduced by learning to distinguishing them from actual fraud and also educating clients of the inherent consequences.
Friendly fraud occurs when a consumer makes an online purchase with his/her own credit card, and then instigates a chargeback through the card provider after receiving the goods or services, effectively canceling the transaction and receiving a refund of the money. The process largely differs from cases of fraud and/or identity theft, which encompasses the fraudulent use of a credit card account through the theft of the account holder's card number, card details and personal information.
According to Chargebacks911, actual fraud was the initial culprit in credit card disputes – overall credit card fraud incidents jumped 17 percent between January 2011 and September 2012 (2). But now, friendly fraud is at the crux of a very complex problem today that affects every component in the ecommerce industry. According to the 2nd annual LexisNexis True Cost of Fraud Study, fraud amounted to a $100 billion loss for retail merchants – and friendly fraud accounted for one-fifth of that total, amounting to $200,000,000 (3).
Chargebacks911 co-founder, Monica Eaton-Cardone, estimates that about 10 percent of all chargebacks are related to actual fraud or identity theft situations, leaving the large majority resulting from instances of low customer satisfaction, consumer ignorance, or malicious intent.
“The main issue is ignorance on behalf of consumers,” said Eaton-Cardone. “The driving force behind friendly fraud is the thought that there are no repercussions – but that just isn’t the case.”
Chargebacks were initially devised as a protective means against fraudulent activity for consumers. But as ecommerce grew, dishonest consumers have realized that chargebacks allow them to buy an item and then dispute the charge by filing a chargeback – result being that they keep the product and receive a refund.
Eaton-Cardone says that the myth that there is no risk of increased loss for the consumer or their banks is based on the assumption that the merchant will not exercise the right to dispute the claim – which, based on a Chargebacks911 analysis, is nine times out of 10 for merchants whose average ticket is less than $200.
Eaton-Cardone maintains that the consequences for rising numbers of friendly fraud incidents are far reaching:
•Issuers are forced to invest in more automated methods to handle increasing demands for chargeback requests and processing, which leads to more incidents not less – the task of filing a chargeback is now available by simply clicking a button).
•Acquirers are forced to increase their fees and rates to cope with higher risks and increased handling costs.
•Merchants are challenged to get more creative in terms of mitigating frozen chargeback thresholds – and also are often required to increase their cost of goods to offset the losses caused by increasing chargebacks.
•Consumers are paying increased rates and higher prices, lured into recurring models that help justify the rising costs of their acquisition.
Eaton-Cardone says consumers are actually getting the worst end of the stick because they are the ones who are ultimately responsible to finance this developmental growth.
A former online retailer herself, Eaton-Cardone formed Chargebacks911 to relieve merchants of the burden of handling chargebacks. After her own trial and error in experiences with chargeback issues, she wanted to provide fast and reliable services that not only help recoup the loss of funds as a result of increasing chargebacks, but to also curb future chargebacks so that merchants retain all processing abilities.
Chargebacks911 specializes in servicing merchants and the majority of banking institutions. For more information about Chargebacks911 and its services, visit the website.
Co-founder Monica Eaton-Cardone established Chargebacks911 in September, 2012, out of necessity after many years as a merchant struggling to find a solution to chargeback issues.
Chargebacks911 was developed specifically for merchants to offer immediate aid through proprietary technology and provide the necessary function that gives merchants the freedom to focus on their core competency and optimize their in-house skill set. Chargebacks911 specializes in servicing Internet merchants, and offers both response and resolution services for chargebacks and cardholder disputes. The company works with merchant clients to help them keep their dispute rates down and retain their ability to accept credit cards. Chargebacks911 provides a unique exception to standard dispute processing for dissatisfied consumers who wish to remedy transactional disputes, without the requirement of additional intermediaries or lengthy correspondence requirements.
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• View LIVE On Your SmartPhone!
* Nanny Cameras w/ Remote View
* Wireless IP Receiver
* Remote Control
* A/C Adaptor
* 2GB SD Card
* USB Receiver
FACT SHEET: HIDDEN NANNY-SPY (VIEW VIA THE INTERNET) CAMERAS
* Transmission Range of 500 ft Line Of Sight
* Uses 53 Channels Resulting In No Interference
* 12V Power Consumption
* RCA Output
* Supports up to 32gig SD
* 640x480 / 320x240 up to 30fps
* Image Sensor: 1/4" Micron Sensor
* Resolution: 720x480 Pixels
* S/N Ratio: 45 db
* Sensitivity: 11.5V/lux-s @ 550nm
* Video System: NTSC
* White Balance: Auto Tracking
* You Buy Our DVR Boards And We'll Build Your Products! (Optional)
Our New Layaway Plan Adds Convenience For Online Shoppers
Phone: (1888) 344-3742 Toll Free USA
Local: (818) 344-3742
Fax (775) 249-9320
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