Pitstop is a tactical podcast for DTC/ecommerce/Shopify entrepreneurs to keep their store on the track and winning. Updated a few times a week, these short episodes get right to the point with none of the fluff. Hear real stories from operators and experts to get fast fixes and find free money.

Pitstop is presented by Mesa.

Things to take away from this episode.

1:30 Types of chargebacks. Service-related chargebacks are for things like an order not showing up, or not as described. Alternatively they call their bank and call fraud. 

3:05 Card not present. When a fraudulent purchase is made in person, the liability is on the bank, but online that liability, even for fraud chargebacks is on the merchant.

7:58 Review the reason codes of your chargeback, but take it with a gain of salt. If there are common issues like “not as described, or order didn’t arrive” you can adjust your descriptions, follow up, etc.

9:06 Make it obvious who they’re buying from. This include on your credit card statement the part that shows up as “sp*yourstore.com”and can be edited in your Shopify admin under /admin/settings/payments https://monosnap.com/file/x3hFgYMYaEhaWCuZPzKp4Dvq97YsEV

9:20 Have a phone number, especially if your customers are a bit older.

12:00 For subscription-based businesses, Chargebacks can be issued for up to 3 months of services, and making it known you can cancel makes customers feel safe. Don’t make your customers feel like they’re ordering from an adult video store to cancel meat box subscription.

14:06 Having clear policies, particularly your refund policy. They can be an insurance policy for if you do get a chargeback. Being able to show what you did to help customers will go a long way.

Tactics to reduce service related chargebacks

• Work with quality suppliers and partners. Test your fulfilment centre, and make sure you’re working with one that offers a guarantee.
• Clearly communicate what’s happening with orders. If there are delays, or items are out of stock, don’t hide.
• Don’t act like an adult website for subscription based business, and make it easy to cancel at any time.
• Adjust your messaging on site, and through your pre-and post purchase automations.

Mentioned in this episode:

Triple Whale - Whale Mail