Earlier this year the guys at 37signals wrote an informative post about how they limited chargebacks. In it they shared their history of changes that reduced chargebacks little by little. This culminated in an innovative idea to create a website that explained 37signals’ charges to their customers. The URL of this site was then used as the business name on the credit card statements of customers. From their post:
If you don’t use a product descriptor (“Basecamp” or “Backpack”), you get 22 characters. So I decided to register 37signals-charge.com, redirect it to 37signals.com/charge, write up a page explaining why there’s a charge on your card, and put that URL on people’s charge slips instead of “37signals, LLC” or “Basecamp” or “Highrise” etc.
Now when someone buys something from us, this line item shows up on their credit card statement:37signals-charge.com 800.xxx.xxxx IL
Visiting that URL takes you to this page where we explain the charge, the products, some suggestions if you don’t recognize the products, and a link to our billing support form someone needs additional help.
This was quick to implement and lead to a 30% drop in chargebacks as a percentage of sales. Not bad for a small investment of time.
Do you have an innovative method to limit chargebacks that you have used in your business? If so, please share it with us in the comments.