How Common Are Chargebacks in the Bail Bonds Industry?
How common are chargebacks in the bail bonds industry? We hear that question a lot from our clients. When we issue merchant accounts for bail bondsmen, we are often asked basic questions about high risk accounts.
How Common Are Chargebacks?
Friendly fraud is by far the most common type of chargeback. Friendly fraud triggers more chargebacks than the other two sources combined. At least 60-80% of all chargebacks are really cases of friendly fraud.
But friendly fraud is related to online purchases only.
The truth is that bail bondsman have a tougher time with chargebacks. Bail bondsmen have to worry about actual fraud from clients who have already been accused of criminal activity.
What Can You Do About Chargebacks
Over the last decades, businesses transact payment using cards. In recent years, bail bonds businesses transitioned from cash or check payments to cashless payments.
The use of cards does not only offer convenience and seamless transactions but as means of doubling the income (when paid is collected from clients). However, this business is considered high risk due to the potential of not being paid.
Bail bonds are ultimately beneficial for individuals awaiting trial but do not have the means to pay for their bail. Bail bonds businesses offer a significant positive impact in the society by saving a lot of innocent lives from being deprived of freedom just because they cannot pay for their bonds.
But even with this positive effect, the bail bonds industry is not spared from chargebacks.
Chargebacks commonly happen if the client is dissatisfied with the service, confuse with the billing, or simply just do not want to pay for the services received. And just like any other businesses, bail bondsmen will go above and beyond to prevent a high percentage of chargebacks that can lead to account suspension.
While it is true that chargebacks cannot be prevented, bail bondsmen just need to focus on implementing preventive measures to combat chargebacks.
- Provide a concise and detailed description of your services in writing. Always furnish your customers with a hard copy. Plus, have it signed as proof of acknowledgment that they have read and understood the terms.
- Be clear about your refund and billing rules. If possible give customers a signed copy of this, too.
- Make sure your billing statement bears the correct business name. If the name on the billing statement is different from the bail bonds name firm, do not forget to inform the customer about this to avoid confusion and possible chargeback.
- Provide all contact details so customers can easily get in touch with your firm.
- Always communicate with your clients when it comes to updates on bail status. Leaving your customers in the dark will trigger them to get their money back via chargeback.
- Keep detailed records of every transaction with your clients from email correspondence, telephone conversations, and contracts. Arranged transaction proofs and receipts in an organized manner– this will come handy during disputes.
- Stay true to what you have advertised and promised. Deliver what is expected from you. If possible, regularly work with your clients. High quality bail bonds service can go a long way.
- Respond to chargebacks quickly or within the given time. Provide all the necessary proofs to stop possible chargeback.
- Lastly, consider getting the services of an expert merchant processing company. Find a company that helps you fight chargebacks.
Even with all the smart tips outlined above, chargebacks and payment disputes are still around the corner. Given the nature of the client base, bail bondsmen deal a higher possibility of chargebacks which dishonest customers happen to take advantage of.
The good thing is, with consistency and the help of a reliable merchant account provider, bail bondmen can fight back payment disputes in a less stressful way.
How common are chargebacks? the truth, is that they are common in the bail bonds industry but they are also manageable. Find the right partner. Call First Card Payments: (877) 441-6801.
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