Credit Card Disputes

Self_Storage_Life

How do you handle Credit Card Disputes?  Do you charge a fee like you would for a NSF?

GSI03

No, but if is a tenant that continues to rent, they have to come in to pay and sign the receipt every time from then on!

teamcapitola

We had one tenant use his elderly mothers C/C to pay for his unit (she actually called in the payment) and then a few months later we received a chargeback from the C/C company.

Turns out his mother was under the care of one of the tenants siblings, and they decided that (my tenant) took advantage of mom... and since they had power of attorney they filed fraud with the card company. Company reversed the charge and sent us a letter stating we had 30 days to "contest" the chargeback.

We handled it like a NSF check (used the NSF function in Sitelink in fact) and the tenant had to come take care of it.

Trying to fight the card company is a nightmare...they place the burden on you to PROVE the transaction wasn't fraudulent. In this case we didn't have a signature as it was over the phone.

This is why we have C/C Auth. forms for auto payment, with the tenants signature and the terms etc.. even then I've heard of facilities still having to fight the card company.

Most times you end up eating it. Although in 10 years this was the ONLY one we had (knock on Formica)

BusyProperties

We have only had one in the last few years. It was days after I charged rent that our tenant's card was compromised but when she filed they charged back ours as well. I called and faxed in all of the notes from her file with an explanation that she had been on auto-charge from the start and that it was not fraudulent. We do not have signed authorization forms, just verbal but I have great notes for each conversation and make it clear that at any time they do not want to be charged, it takes a simple phone call. The appeal was approved and we got our money back within 30 days. We don't charge any extra fees but I probably would depending on the situation and how much work went into it. 

Gaulavana

Noting every phone call is important in such cases. Luckily, we didn't have such a situation yet...but charging extra fees for that would be a good preventive decision. Anyway, credit card disputes are very rare because systems usually work great and such problems shouldn't happen. I googled more about these disputes and found at swpdxlaw.com additional information about such cases, their preventions, and ways to fix everything. I hope we won't face anything like that ever, but it's important to know and understand how to act if smth happens.

safetstorage

we never win a charge back, the cc always gets it back even with a sign contract and it is the first thing we tell them rent is due on the 1 and if you move out after the 1st  it is still needs to be paid

OustandingOperator

We fortunately do not deal with this often, but we certainly do attach the NSF fee to the account. You can also consider immediately moving forward with the lease termination/eviction process, but it is best to make contact with the renter and try to understand why they made this choice and how the both of you can correct it and move forward. Obviously, if they have moved out you cannot tack on fees without muddying the books and you cannot over lock them because they are gone! If that is the case, then you have unfortunately been burned by the renter and should blacklist them from future rentals at your facility. This situation is a great one to guard against with your lease! Make sure credit card authorizations are in writing! Rarely do you win these disputes but having a full arsenal at your disposal will provide you the greatest advantage and peace of mind. 

JulieAton

I had a couple of chargebacks this summer. Spent a lot of time disputing.  Always in customers favor unless I could prove they hadn't cancelled automatic payments.  Seriously how can I do that!