The moving industry, much like any other, faces a persistent challenge in the form of chargebacks. These occur when customers dispute charges, often claiming they were billed incorrectly or duplicately. These disputes not only impact a company’s financial health but can also tarnish its reputation. In our experience, businesses frequently lose these disputes due to insufficient documentation. To protect your business, it’s crucial to ensure that the payment process and documentation are as transparent as possible.
To guard against chargebacks, it’s imperative to have your customers sign a meticulously detailed document, such as a contract or Bill of Lading (BOL), which transparently outlines the total amount owed. This document should be as clear as a restaurant receipt, complete with an itemized breakdown of hourly rates, materials, and any additional fees that collectively constitute the total charge. The more transparent your documentation, the easier it is to prove to the customer’s bank that the charge was indeed authorized.
Handling Multiple Payments
In cases where customers make multiple payments toward the total, incorporating an invoice that itemizes each payment can be instrumental in minimizing chargeback risks. This step enables the bank to verify that the disputed transaction was indeed a partial payment toward a larger total, significantly reducing the likelihood of chargebacks.
Addressing Discrepancies in the Amount Charged
Customers frequently dispute charges when the final total exceeds the initial estimate provided. Estimates, by their nature, are approximate, and the final balance can exceed the estimate if the customer fails to provide an accurate inventory of their items. Here’s how you can protect your business:
Verbiage on Your Estimate: Ensure that your estimates are signed by the customer. It’s imperative to convey to card brands (Visa, MasterCard, Discover, AMEX) that the customer, through their signature, acknowledges that the estimate is an approximation. The final total will be based on the actual hours required to complete the job.
Explicitly Stated Final Total: When the customer signs off on the Bill of Lading or invoice, the final total should be unequivocally displayed. Consider implementing a separate invoice or receipt, which the customer signs alongside the Bill of Lading, signifying their consent to the final total.
Thorough Charge Breakdown: In cases where a customer disputes an incorrect amount, your Bill of Lading or invoice must provide a meticulous breakdown of the charges incurred during the job. A comprehensive summary statement elucidating all charges will help card brands understand the charges, thereby reducing the likelihood of a chargeback.
By diligently following the steps outlined and maintaining meticulous documentation, you can minimize the risk of chargebacks and provide a seamless, secure payment process for your customers. Safeguard your business by establishing a transparent and accountable system that ultimately benefits both you and your customers. Protecting your moving company from chargebacks not only preserves your financial stability but also reinforces the trust and integrity of your business within the industry.
We’re not only here to help you in challenging chargebacks; we are also dedicated to sharing vital best practices that can greatly diminish the chances of encountering chargebacks in the initial stages. To discover more, feel free to get in touch with us via phone at 714-461-2200 or send us an email at email@example.com.
Remedy is powered by Chosen Payments whom is a registered ISO and FSP of Wells Fargo Bank, N.A., Concord, CA and BBVA USA, Birmingham, AL., and Elavon, Inc., N.A., Atlanta, Georgia, and Evolve Bank & Trust; Memphis, TN., and Merrick Bank, N.A., Draper, UT.