All businesses can fall victim to chargebacks, and coaching companies that sell pricey programs (referred to as “high-ticket” coaching) are especially susceptible. At E-Commerce 4 IM, we specialize in high risk credit card processing. We also offer in-depth chargeback mitigation protection systems that provide near real-time notifications and support. This is why we want to give you some simple advice when it comes to dealing with chargebacks.
In this guide, we’ll provide some simple chargeback advice to make sure that you can avoid chargebacks as much as possible. We will explain exactly what chargebacks are and why your coaching business might be deemed a “high risk” venture by most merchant account providers.
In addition to this, we will provide you with risk management tips to help you implement your own chargeback mitigation system. Keep reading to get the best advice when it comes to chargebacks for high ticket coaching businesses.
What are Chargebacks and why are They bad for Your Business?
If a customer buys a product and finds that it doesn’t meet their needs, they can request that their credit card issuer provides a chargeback. This effectively reverses the transaction and gives the customer a refund for their purchase.
When a chargeback is initiated the bank will withdraw funds from the seller’s bank account and will put the funds straight back into the customer’s account. Common reasons for chargebacks could be that goods are damaged, are different from described, or even haven’t been delivered. In the coaching industry, the chargeback reason “different than described” can be vague and troublesome to deal with.
The purpose of chargebacks is to provide protection for consumers. However, they have the potential to cause big problems for any business. Worst case scenario is that chargebacks can make your business vulnerable to fraud. Although there are chargeback warranties that can sometimes help, it’s far better to implement your own chargeback reduction and mitigation system.
Why are High Risk Coaching Businesses Prone to Chargebacks?
If your business offers a coaching service, then there is a good chance that it runs a high risk of suffering chargebacks. This is because coaching businesses operate by selling customers non-tangible goods. The likelihood of chargebacks increases when you’re selling high ticket coaching programs, as they are more expensive than other coaching sessions. From the customer’s perspective, the level of investment comes with a higher emotional investment as to whether the program meets their expectations.
The fact that the services you’re selling are non-tangible goods makes it fairly simple for a customer to request a chargeback if they feel that the service acquired is somehow different from what they thought they were purchasing. In addition to this, coaching courses require the customer to make a reasonable effort to make the most of the service.
If a customer doesn’t feel that they get enough benefit from your coaching business, then they can initiate a chargeback. This is why chargebacks are commonplace for “high ticket” or “Master Mind” coaches. As a result, it’s worth considering what kinds of chargeback protection you need for your business.
Simple Chargeback Advice to Follow
There are plenty of mitigation software programs out there that minimize your company’s risk from chargebacks. However, it’s important to remember that chargebacks will invariably happen. In other words, it’s a good idea to prepare your company for this scenario.
In terms of chargeback advice for coaching businesses, we recommend taking the following steps:
1. Accurately describing your coaching service: the best form of risk management
The first piece of chargeback advice is to make sure that you let the customer know exactly what they are buying. Be sure to use clear and simple language so that newcomers can understand what your service is. Avoid too much jargon and don’t include too much unnecessary technical information.
Try to see your coaching company through the eyes of a new customer. Clearly outline the steps involved in your course, and make sure the customer understands how much time and effort they will need to put in.
2. Be careful not to make unrealistic promises when offering “high ticket” coaching
Making promises is one of the biggest reasons why a dissatisfied customer may choose to request a chargeback. This is why you should never oversell the service that your coaching company provides.
Be realistic about what most customers can get out of your service, and you will experience far fewer chargebacks. Although the non-physical nature of coaching makes chargebacks likely, if you don’t promise the world, then you will see an increase in customer satisfaction.
3. Consider your credit card processor carefully when establishing your merchant account
Another crucial piece of chargeback advice we strongly recommend is that you consider how your credit card processing works. How your merchant account and credit card processing is set up when you start out with your coaching business is crucial in how well you’re set up to mitigate chargebacks.
As most coaching businesses will find that they are deemed to be high risk, it’s a good idea to seek outside help from high risk specialists. If you need high risk credit card processing for your coaching business, don’t hesitate to get in touch. We’re more than happy to have a talk about your business and provide you with a free quote. Simply contact us here.
4. Get professional chargeback advice and set up a chargeback mitigation system
A DIY approach can only take you so far in protecting your coaching business against chargebacks. We offer professional assistance in implementing a rigorous chargeback mitigation system that can provide your company with a higher level of protection.
By using our mitigation systems, you can avoid many troublesome issues. Instead of worrying about chargebacks, you can concentrate on growing your business and making it a lasting success.
Thanks to our team of experts and advanced mitigation software at E-Commerce 4 IM, we will be able to pinpoint any potential weaknesses, give you professional chargeback advice, and help you avoid common chargeback mistakes. So don’t hesitate to get in touch and we will show you how to implement a smart and affordable chargeback strategy. Contact us here at any time, or give us a call at 1-800-570-1347.