This Chargebacks911 review is intended to help design entrepreneurs and freelancers identify undisclosed risks in their business.
What are those risks? How do they impact the bottom line? How, with limited financial expertise, can freelancers and entrepreneurs protect their profits?
Identifying Unknown Risks
Many freelancers and entrepreneurs in the design world specialize in the creative side of things, not necessarily the business-building details. Some aspects of the business world will catch creative folks off guard.
For example, chargebacks are a growing concern for all business owners, and freelance designers are no exception. Chargebacks are a consumer protection mechanism, intended as a safeguard against merchant or criminal fraud.
Credit card holders are able to contact their bank and explain the supposed fraud that transpired. Banks can then forcibly withdraw funds from the freelancer’s account and return them to the cardholder, essentially voiding the original transaction.
While theoretically an important protection for credit card holders, chargebacks have a negative impact on businesses. The freelancer or entrepreneur must pay steep fines for each chargeback filed and could potentially lose the right to process credit cards in the future.
Most devastatingly, a chargeback means the designer just did all that work for free. It’s impossible to recoup the time lost on a project—unless the illegitimately filed chargeback can be reversed.
Risk Management Options for Freelancers
According to Chargebacks911, a risk mitigation and chargeback management firm, there are various ways freelancers can optimize their profitability by minimizing risks. The viability of these options will depend on the individual freelancer’s available resources and financial intelligence.
There are two popular options used by freelancers and entrepreneurs.
Option #1: Outsource
Time and time again, business owners witness the benefits of outsourcing specialized tasks. Devoting in-house resources to tasks that are outside the designer’s skillset will quickly eat up valuable time and money.
Outsourcing produces better results and more ROI. Not only that, but freelancers’ resources are better spent elsewhere. Chargebacks911 says: “We handle the task of chargeback management so business owners can do what they do best: grow the business by satisfying existing clients and finding new ones.”
Our Chargebacks911 review yielded several products and services that can be customized for a freelancer designer’s creative business.
- Criminal fraud detection and prevention.
- Assistance streamlining the task of transaction processing and reducing freelancer error.
- Solutions for fighting illegitimate chargebacks (a client didn’t read the contract well enough and tries to get out of paying for a particular service).
Additionally, there were several other features revealed during the Chargebacks911 review that would benefit a budding business venture.
- On-demand services available whenever the freelancer needs help.
- Pay-on-performance options to ensure ROI.
- Personal assistance from an Account Manager and access to a Risk Management Team.
Chargebacks911 points to several reasons why DIY efforts aren’t effective and why professional assistance might be needed:
- Designers can’t identify the real problem. Freelancers are passionate about their business. They might not be objective enough to admit their own shortcomings, the mistakes that are leading to unsatisfied clients.
- Freelancers don’t have the necessary knowledge. Designers specialize in design, not necessarily complex financial jargon.
- A focus on the past will restrict future growth. If freelancers are constantly trying to fix problems of the past, they won’t be able to grow their business in the future.
- Design is depended on time. Without enough time, projects won’t get finished. Every second is valuable and can’t be wasted on things like chargeback management.
- Freelancers can’t adapt fast enough. Fraud trends are constantly evolving. Credit card associations change the rules every few months. Staying current on regulations and threats is next to impossible.
Option #2 Do-It-Yourself
Most new business owners and freelancers have limited resources. If cash is in short supply, outsourcing might not be an option.
DIY chargeback management costs less, but it is also less effective. When all is said and done, an amateur’s attempts might not produce any ROI at all.
During our Chargebacks911 review, it was obvious the company thinks professional assistance is the best solution. However, Chargebacks911 does provide several resources for those who choose to do it themselves.
Not only are the blog and knowledge base articles highly useful resources, the company also published three detailed eBooks.
- 35 Simple Steps to Preventing More Chargebacks
- The Geek’s Guide to Chargebacks
- The Insider’s Guide to Understanding and Preventing Friendly Fraud
Helping Freelancers Succeed
The intention of this Chargebacks911 review was to help designers realize the risks their business is exposed to and determine the best management option for their particular endeavor. It serves only as a resource, not necessarily an endorsement.
Here at Creative Beacon, it’s always been our goal to help designers succeed with their career or entrepreneurial goals. Hopefully, this is just one more tool to make that possible!