{"id":1078,"date":"2024-05-23T07:00:14","date_gmt":"2024-05-23T07:00:14","guid":{"rendered":"http:\/\/suimy.me\/?p=1078"},"modified":"2024-05-29T17:09:53","modified_gmt":"2024-05-29T17:09:53","slug":"how-freelancers-can-prevent-chargebacks-7-effective-strategies","status":"publish","type":"post","link":"http:\/\/suimy.me\/index.php\/2024\/05\/23\/how-freelancers-can-prevent-chargebacks-7-effective-strategies\/","title":{"rendered":"How Freelancers Can Prevent Chargebacks (7 Effective Strategies)"},"content":{"rendered":"

We all know the financial challenges freelancers face<\/a> when finding new clients, preserving existing income sources<\/a>, maintaining cash flow during slow times, handling income taxes<\/a>, and more. Unfortunately, there is another financial hurdle you could face as a freelancer: chargebacks.<\/p>\n

A chargeback is a forced credit card refund<\/strong>. Chargebacks<\/a> are a form of consumer protection, originally created to protect people from fraud<\/strong> and unauthorized transactions<\/strong>. The merchant bears the burden of proof. All the cardholder (freelance client) has to do is contact the bank and ask for their money back.<\/p>\n

If you accept credit card as a form of payment, even if you are freelancing, credit card companies will deem you a merchant, which means that a freelance client can dispute a payment they\u2019ve made to you<\/strong>. The money will be removed from your bank account, without warning or your consent, and you will be left with an extra chargeback fee you\u2019ll have to pay.<\/p>\n

As you can see, chargebacks open the door for fraudsters, which may include clients of questionable character looking to cheat the system<\/strong>. So here are some financial tips<\/a> for freelancers to prevent chargebacks.<\/p>\n

\n\t\t\t\t\t10 Tips to Invoice Your Clients Professionally<\/span><\/a><\/p>\n
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10 Tips to Invoice Your Clients Professionally<\/h4>\n

\n\t\t\t\t\t\tLet’s face it – getting paid is great, but invoicing can be a real headache for freelancers, especially…\t\t\t\t\t\tRead more<\/span><\/p>\n<\/div>\n<\/div>\n

Accepting Credit Cards As Payment<\/h4>\n

The first solution that might come to mind is to avoid accepting credit cards as payment altogether. However, other forms of payment come with risks too: check fraud, counterfeit checks, and bouncing checks are some unpleasant side effects of accepting checks as payment.<\/p>\n

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Bitcoin and other virtual currencies<\/a> aren\u2019t widely accepted yet, and wiring money or providing direct deposits are risks many clients aren\u2019t usually willing to take. In the end, credit card payments are usually the lesser evil. Chargebacks are unpleasant but with proper management, they are preventable. Taking manageable risks is the only way to ensure growth and success<\/strong>.<\/p>\n

Best Ways To Prevent Chargebacks<\/h4>\n

A determined fraudster or a lazy client<\/a> is bound to slip through the cracks on occasion, but there are plenty of ways to reduce the risk of these unnecessary profit losses.<\/p>\n

1. Consider Using A Moderator<\/h5>\n

Technically, you can find freelance jobs anywhere. It should also be noted that anyone<\/em> can post these jobs. Unless there is a screening process<\/strong> of some sort, you could end up working with some real sketchy characters. Consider using freelance job coordinators<\/a> like oDesk<\/a>, Upwork<\/a>, or Guru<\/a>.<\/p>\n

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In addition to facilitating work opportunities through the job board, these companies act as a payment moderator<\/strong> between the client and freelancer. There are checks and balances<\/strong> in place to help make the payment process as safe as possible. Some even go so far as to guarantee payment. Chargebacks are much less likely to occur in these \u201csafe\u201d environments.<\/p>\n

2. Meticulously Research The Potential Client<\/h5>\n

Even if you do use one of these freelancing agencies \u2013 and especially if you don\u2019t \u2013 it is important to do your own research. An honest client who has every intention of paying for quality work will have a better online reputation than a scammer who is determined to get something for free.<\/p>\n

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Go online and learn everything you can about a new or potential client.<\/p>\n