BadCustomer.com – A Clever Way to Fight Subscription Chargebacks?

Any subscription site that doesn't watch and worry over credit card chargebacks is a site that's doomed to have rocky finances. The problem isn't just giving back refunds, it's the fact that your merchant account processing fees will rise if you have too many chargebacks. Then your monthly processing limit could fall. Ultimately, you could lose your processing account completely, and have a darned hard time opening a new one.These are not inflated fears. If your site's chargebacks hit just 1% of total sales, you could be in deep trouble. Card processors are even more risk-averse these days then they were in better economic times.  Our sister site has a series of how-to info on fighting bad payment cards.  (See links below.)  In the meantime, here's some cool news: a new service just launched called BadCustomer.com where merchants – including eretailers as well as subscription sites — can pool information about consumers who are chargeback prone. Then, the thinking goes, you'll be able to block these customers from purchasing at your site.It's not about stopping the customers who honestly order and then ask for a refund because they weren't satisfied. It's about the creeps who take advantage of site after site on purpose.I'm sure the privacy orgs will be up in arms. I love privacy as much as the next consumer, but as an innocent merchant who has fought chargebacks , I know which side I'm on.Think of it as a Better Business Bureau for the merchant instead of the customer – we should have the right to do business with honest, upright people.P.S. This is not an endorsement. I haven't spoken to the folks at BadCustomer.com yet, nor am I a client.

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