Chargebacks on final sale or non-returnable customized/personalized items.... HELP!

[rcheltrvel]

Hi,

I have an online store and maybe a few times a month, a chargeback gets initiated. It was happening too much and I was always losing the money, dispite PayPal submitting my proof to the credit card comapnies. For years chargebacks done through customer's credit cards are mostly always won in the customer's favor, no matter what. I provide tracking, I provide emails, I provide all details to proved the customer got the item they were supposed to, etc.. My return policy is return for store credit or exchange only or if insist on refund, a restocking fee applies and all must be done within 30 days. Many of our manufacturer's charge a restocking fee. Customized/personalized items are non-returnable, not even for exchange. Once the item is made with that clients name or to their specifications (we do dog name collars and custom dog carriers), it is clearly stated in the product description and also a box when they check out that they have read our return policy, we can NOT TAKE IT BACK!

Way too many times a chargeback has been initiated, the customer has the items, expensive items, and there is an issue months down the line where the customer isn't happy, says they didn't receive, says it's fake (like they order a genuine leather bag for their dog, they get it and claim it's not real leather, even know it 100% is. The chargeback gets initiated, the customer never sends the item/items back to me, they get all their money back. I get charged a $20 chargeback fee and lose all the money from the order. It's just not fair and PayPal does nothing to protect the retailer/seller. 

This was happening often and I was getting so frusterated so I called PayPal to see if they had any advice for me. They said you can have them electronically sign at checkout that they have read and agreed to the return policy. I added that. It didn't help at all. I just had a customer call. Early May she ordered two leather dog carriers (made by a very reputable company). She had them customized to her specifications (which now makes the bag unsaleable/unreturnable because it's been altered), she checked off that she read and accepts our return policy and she recieved the items plus two free gifts way past 30 days ago. She contacted me today that she wants to return the bags because she claims they are 100% without a doubt not real leather & too heavy (fake leather is light, real leather is very heavy in a dog carrier)! These are super popular and people love this bag and the leather is beautiful. The customer refuses to speak with the manufacturer and refuses to send me any photos of the items, etc... They 100% are genuine leather, they were shipped to her two months ago and now she is demanding a refund.

What can I do to protect myself? I know she will initiate a chargeback, she just seemed like one of those type of people and I am sure I won't get the two now unsellable bags back or the free gifts. This is $750 and I am a small business, these are killing me!!! I called PayPal and they said there is nothing they can do to help. Does anyone know of any way/tips to protect myself in situations like this on custom/personalized items and being able to enforce ? I am so so beyond frusterated with this and want to find a different company to process my credit cards through.

[DPCreations]

In this case do whatever is necessary to settle with the buyer.  If it means you pay return, then pay return and refund upon return.  You know you will lose all when the buyer goes to dispute ith credit card.  You have 2 options:  settle without total loss or accept chargeback for total loss plus $20.

There is another issue with disputes and chargebacks.  They become high risk for PayPal.  PayPal wants business to settle with buyers so PayPal disputes are not necessary.  Disputes (and chargebacks) are restricted acitivities and NOT permited.  PayPal will abruptly close your account when you have too many.

You have a problem with disputes/chargebacks and you need to address that.  Your policies will never be enforces by payment services.  If want to enforce your policies, then accept cash or checks only.

Perhaps you can modify your pictures and descriptions to make sure buyer knows all details.  You could phone buyer in advance to discuss.

You shoudl review all of your disputes to look for clues about what you can do with your product and description to prevent the disputes.

It may be that your product is the problem and will always have high risk of disputes.

[rcheltrvel]

I sell 1000's of products. Usually the ones this happens with are the expensive dog carriers and strollers. They know what they are buying especially when they contact you to add special customizations. When I go to shop at Home Goods and being home an item and want to return it 32 days later, I know I can't because they only take returns up to 30 days. The fact that I can go and fight the charge on my credit card and I'll get my money back and keep the product is just not right. It's great for me but not for the retailer. It's unfair and sucks actually.

[DPCreations]

Unfortunately, online selling has risks and it's not fair; neither is business fair.

As a business, the focus should be on business profit and risk,not on fairness.  You're not in a position to enforce fairness.

Take a page from big retailers and their return policies; it's not based on fairness, either.