Freelancers: 7 simple ways to avoidMost of the freelancer found it is financially hard while finding new clients. There is also another hurdle you will come across as a freelancer: Chargeback. A chargeback is a forced credit card refund. It is used for consumer protection against fraud.
Chargeback from customers
Chargeback from customers
Best way to prevent chargeback
A well-known fraudster may know how to escape from the chargebacks but there are plenty of ways to reduce the risk of this unnecessary profit loses.
- Conduct a phone interview
- Be sure to check spam sites
- see if there are any review
- Check out their website
- Meticulously research the potential client: If you don't use freelance agency then you have to research for the client. A client with the higher reputation will provide you with enough cash and will be honest to pay you. You can learn everything about the potential client.
- Consider using a moderator: Freelance jobs can be found anywhere and everywhere and you should know that anyone can post the job. Until there is screening process you could end up in working with sketchy character. You should try to use freelance job coordinators like oDesk, Elance, or Guru. These companies will work as an agent the freelancer and the client.
- Take extra precautions: Unauthorized transaction is responsible for chargeback. Make sure you really are working for the person who will be footing the bill. Ask for the photocopy of the credit card faces and also the id of the account holder. Some of the clients might even not have access to the actual cards.
- Address payment details in writing: The chargeback prevention tool would be your contract. The only way to claim the euchre back is through written documentation supporting your claim. You should pay careful attention to the tips regarding rates, invoicing, kill fee, and deadlines.
- Clearly outline copyright ownership: Another chargeback prevention tool is copyrights laws. After paying you the client has the same design after getting a charge back then you can able to file a case against the copyright and hence the chargeback is claimable. You can also threaten the client with a DMCA takedown and so the client will pay you real quick.
- Comply with all deadlines: Scammers are not responsible for all the chargeback. But there are real possibilities of chargeback that are against your own actions. There are many reasons for a client to file a chargeback against you. The client shouldn't have to pay for something he didn't receive.
- Do the work, and do it well: Chargeback won’t be filed only when you give a defect project but also when you change the project and submit. Chargeback would come when you submit Y after your client asks for X. One way is to do is to limit the no. of projects that you take at a time. If you do a little work the quality of the work will also be good
Have you ever experienced a chargeback?
Were you able to successfully disagree with it?
Did you change the way you interact with clients as a result?