On Tuesday, June 18, the Illinois Limousine & Bus Association (ILLBA) held another session of their midmorning Coffee With ILLBA webinar series. With guest speaker Jim Luff of Aurora Payments, the online event tackled the topic Everything You Want to Know About Chargebacks but Are Afraid to Ask.
In the midst of a heatwave in Chicago, ILLBA President Tracy Raimer of Windy City Limousine & Bus and Secretary/Executive Director Paula DeBiasi addressed upcoming events in the Midwest that will be of interest to operators, specifically the NASCAR Chicago Street Race, the Republican National Convention in Milwaukee, and the Democratic National Convention in Chicago.
Luff was then introduced, who kicked things off by acknowledging that chargebacks are “a necessary evil of the business.” The 35-year veteran of the luxury ground transportation industry and Aurora Payments’ association relationship manager then launched into a PowerPoint presentation.
ILLBA President Tracy Raimer
First and foremost, the session elucidated the definition of a chargeback, namely “the payment amount returned to a credit or debit card after a customer disputes the transaction.” Luff then detailed the three causes of chargebacks, which include True Fraud, Friendly Fraud, and Merchant Errors. True Fraud refers to a customer’s use of a stolen or counterfeit card. To defend yourself from this crime, Luff suggests that operators have procedures in place to verify the ID of the person using the card. Also, he advised that operators be ready to notify the credit card company with a “Code 10” transaction, which alerts the bank of a potential unauthorized purchase. Friendly Fraud, which Luff said is on a huge uptick since COVID, occurs when a family member or employee uses a credit card. In these cases, documentation of the service (e.g., GPS tracking) or threat of legal action generally dissuade the chargeback. The third category of chargeback, Merchant Errors, generally happens when a customer doesn’t recognize the business name on their statement. Again, documentation is key to defending your company in this instance.
Guest Speaker Jim Luff of Aurora Payments
Luff also reviewed the telltale signs of telephone fraud (i.e., overly chatty customers who request that the charge be run immediately) and common myths of chargebacks. Above and beyond everything, operators are strongly encouraged to respond promptly to any chargeback, even if it’s a small amount of money. Ultimately, too many chargebacks on your record can hurt small businesses and negatively impact their relationships with credit card companies. The presentation concluded with a lively Q&A session.
ILLBA Secretary/Executive Director Paula DeBiasi
Before ending the webinar, DeBiasi reminded operators that Chicago City Tax Filing is due August 15. She and Raimer also encouraged all operators and chauffeurs to report illegal operators at the airport. While they said that airport officials and police are making an effort to reduce bad actors, they simply don’t have the manpower to oversee all curbside activity. Taking cellphone pictures of license plates goes a long way with shutting down illegal activity. Incident reports can be accessed by clicking here.
If you missed this month’s Coffee With ILLBA, simply click here for a recording of the proceedings. The next webinar is scheduled for July 16, and will focus on low-cost marketing ideas.
Visit illba.org for more information.
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