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When The Customer Is Entitled To Open a Dispute And How to Resolve One

04 July 2022
Reading Time: 3 mins

Customer complaints are a part of life when running a business, and it doesn’t matter if you’re a freelancer, a startup, or a multimillion-dollar corporation. Some people are just going to be unhappy with your service, your products, or your behavior.

The only major difference when it comes to complaints comes from the way you handle the situation. After all, there’s a solid reason why corporations invest heavily in specialized lawyers and high-end customer service.

Still, not every business owner can afford such expenses, so it all boils down to knowing how to deal with a complaint that may turn into a payment dispute (if it hasn’t already).

Moving forward, we’ll have a look at valid and invalid disputes and how to handle the situation in both scenarios. We’ll also put a bit more focus on how to resolve a dispute where the customer is right since mistakes can (and do) happen.

Types of Customer Complaints

Customer complaints are a sign of miscommunication. On one side, it could be that you misrepresented your product or service, creating false expectations.

On the other side, the customer may have read your product presentation wrong and assumed a different usage for it. Plus, there are situations when both these scenarios are possible.

Now, some customers may try reaching out in an attempt to solve this problem amicably. They’ll send you an email, call your customer support line, or post a comment on your website expressing their dissatisfaction.

At this stage, you can still clear things out with the customer and win back their trust. If you handle the situation well, you can make full use of the service recovery paradox where customers’ satisfaction with the brand increases after you’ve solved their problem.

Valid vs. Invalid Disputes

Sadly, not every situation can be solved amicably. Part of your customers may go right to the source and file a payment dispute with their bank. In this case, the bank becomes the moderator between your company and the client and decides if it will accept a chargeback on the payment or not.

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