Question about chargebacks in Dropshiping business.

mrFabulous

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I plan to open a dropshiping store, but I have a question.

Lets say a customer came to my website and orders something and makes the payment.

After receiving the money in my bank account, I go to the suppliers website (example Aliexpress) and order that product for my customer.

Now what if the customer decides to ask for chargeback from their CC provider?

Will the money in my bank account be automatically refunded to the customer?

How to prevent this?
 
Depends on your payment processor. It will be opened as a dispute and you would have to provide proof that you delivered the item (tracking number). Usually the payment will be automatically withdrawn from your account, along with any chargeback fees.

Your payment processor would forward that information to the customer's bank and it's up to them to decide. If they side with you, you'll get the money returned back to you.

If you're customer service is on point, chargebacks should be rare. I used to just refund anyone who complained in order to keep chargebacks as low as possible. But they're inevitable.
 
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