The return fee is charged when a buyer’s purchase is overturned and funds are brought back to their account in a ‘no more, no less’ basis. The benefits of the return fee is that it imparts pleasant customer feedback, it safeguards your e-business’ name, and it enhances customer service and refund policies. On the other hand, the drawbacks are extra business costs, downright necessity and concern, and safety issues.
Normally, return fees vary between $15-30 answerable to the credit card company and your merchant accounts provider. This can be seen in your billing statement after a client gives back their bought goods or acquired services. They will then ask for a refund. It typically takes seven days to complete this process however it could take longer due to some further requirements required for the refund to be acted out. Find out the pros and cons of return fee in the following subsections.
Imparts pleasant customer feedback
This will assure your customers that you really stick to what your refund policy states. Once they tried to return certain purchased merchandise and they successfully receive the refund in their account, then they will put their trust and confidence in you. They are rest assured of a secured payment system and that they will gain their money’s worth.
Safeguards your e-business’ name
Return fees should not be seen as a mistake but it should be distinguished as an opportunity to improve the quality of your goods and services marketed online. When a customer demands a refund, it’s either he is not pleased or is not engrossed with what they purchased. Through their comments, you can upgrade your manufactured article and at the same time, pay a closer look to your available products and assuring that there are no flaws. You’ll come up with a better marketing approach. In this manner, you’ll be protecting the reputation of your online business.
Enhances customer service and refund policies
From time to time, your business will be challenged by customers who take your policy for granted since they are not aware that you, as the merchant, is being charged in exchange of their returned purchase. You can state in your policy that if a customer demands a refund, he will be charged for the return fee that is being placed in your bill by the merchant account provider. This will assure you that bogus buyers won’t be in your way. This will also pose a clarification that you don’t want any mishaps between you and the customer in the near future.
Extra business costs
Without a doubt, return fees benefit your customers, which is good but it is the other way round for you. There are times when the return fees cost you more than what you are earning. You have to cut your budgets for unwanted billing statements. Since you are obligated to obey the merchant account rules, you have no other choice but to pay for whatever fees are charged in your name. It won’t only cost you the return fee but also the refund for your customers. To avoid this, make sure your policy is strictly implemented and that your products are worth their money.
Downright necessity and concern
As stated above, you are obliged to follow the rules and regulations of having a merchant account. It is your responsibility to pay for the fees and charges posted in your account or else, your business will be discontinued. In doing so, you will grant a good reputation with your merchant account provider.
The biggest problem of online businesses is the hackers. One day, you’ll open your account and be surprised with the random transactions processed. In the end, you’ll be paying more fees and charges. What’s worst is when you never notice the scamming at all. This is why you have to make sure that you verify your online security software and conduct a scheduled system check to steer clear from hackers and other fraudulent pursuits.
One way to have a good refund policy is to know the possibilities of having return fees. You have to be aware of its benefits and drawbacks. This will steer your business away from probable disaster.