Home » Forums » Discussions » The Wish List
» Chargeback Fee

Chargeback Fee

Submitted by Indinera on 15 Feb 2010

I would like the chargeback fee to be absorbed by Plimus.
It is very unfair for vendors and setting the limit at 0.4% can turn out abusive since the calculation is not based on the addition of chargebacks but per one regardless of how many you got in a month.

‹ Tutorials Shopping cart support for third party e-commerce scripts ›

....

Submitted by Indinera on 15 Feb 2010.

To be more specific about my last line, that means that if for instance $15 (fee of ONE chargeback) equals to 0.35% of your monthly earnings, you will have to pay the fee for EACH chargeback you get.
If you get 10 chargebacks, the 0.35% is multiplied by 10 meaning that 3.5% of your earnings goes into a "chargeback fee" that you are absolutely not responsible of.
Wow, how unfair is that? The chargeback has to go totally (fairest option) or at the very least remain equal to the 0.4% no matter how many of them you get.

Plimus Chargeback Policy

Submitted by Derek on 16 Feb 2010.

I understand your concern and sense of injustice but you have to understand that Plimus is monitored by Visa and MasterCard on its level of chargebacks.

An excessive level of chargebacks results in fines and extraordinary expenses to Plimus as well as financial and legal risks.

Visa and MasterCard only factor the number of chargebacks versus number of sales without taking volumes and amounts into consideration.

Plimus does the same with our seller community. As an incentive for Plimus sellers to closely monitor the level of chargebacks it was decided that Plimus will absorb the chargeback fee for sellers with a level of chargeback not exceeding 0.4%, calculated as the number of chargebacks in a certain month divided by the number of sales.

We believe that is fair and that it is not appropriate for us to pass these costs onto the Plimus community-at-large through hidden charges or increased fees. This way the penalties are charged where they fall.

Thanks,

Derek,Plimus

chargebacks

Submitted by Jeff on 16 Feb 2010.

I had always assumed that the .4% was based on dollars, not on units. So if my math is correct, you absorb one chargeback for every 250 units in the same month. Wouldn't it be more fair if the ratio was based on overall sales? ie. I may not sell 250 units a month, but I do average less than 1 chargeback for every 250 sales overall.

Clarification

Submitted by Derek on 18 Feb 2010.

Just to make this clear our current terms and conditions state as follows:

"Chargeback ratio is calculated as number of chargebacks divided by number of purchase events." This applies for each payment cycle.

Derek, Plimus