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Why Do Customers File Business Transaction Disputes?

Business transactions can be classified as internal or external transactions. Internal business transactions occur within an organization and do not involve third parties. Internal business transactions involve departments within a company exchanging finances or the exchange of finances between a company and its employees. On the other hand, external business transactions involve third parties. For example, when a customer purchases something from a business, it is an external transaction. This article is about external business transactions involving customers.

As a business owner, it is vital that you understand why customers file business transaction disputes. By understanding what triggers disputes, you can be able to take steps toward preventing disputes. You can be able to improve customer satisfaction, loyalty, and overall business performance. Additionally, by understanding why customers file business transaction disputes, you can make informed decisions and take appropriate actions when faced with disputes. Below, we share five of the main reasons why customers file business transaction disputes.

#1: Billing Errors

One of the most common reasons customers file business transaction disputes is billing errors. These errors manifest in several forms, including double billing, incorrect pricing, or unauthorized charges. Billing errors can result in a customer paying more than they should. Moreover, it can erode customer confidence and trust in a business. Therefore, it is crucial that you do your best to reduce the occurrence of billing errors. Some of the practices that can help you reduce the occurrence of billing errors include:

  • Clearly communicating with customers about prices
  • Double-checking invoices and bills before they are sent out to customers
  • Conducting regular audits of the billing process
#2: Substandard Products or Services

Service or product quality is a crucial factor in whether a customer will be satisfied or not. Customers may feel disappointed and frustrated if they receive a substandard product or service. This can result in a dispute. The following are some of the types of disputes that can arise due to service or product quality issues:

  • Poor service
  • Defective product
  • Misrepresentation

Ways of preventing quality-related disputes include:

#3: Delivery and Shipping Issues

If a customer purchases a product and does not receive it within the agreed-upon timeframe, it can lead to a dispute. A frustrated and disappointed customer may file a dispute against you, seeking a refund or compensation. A customer may also cancel an order, which is something you do not want to happen because it can cause lost revenue.

#4: Unauthorized Charges

Another common reason why customers file complaints is unauthorized charges. An unauthorized charge is any charge on a customer’s account that the customer did not approve or authorize. Unauthorized charges can happen for various reasons, including billing mistakes, fraud, technical glitches, or a simple misunderstanding. But regardless of the cause of an unauthorized charge, such an occurrence can lead to loss of trust, customer dissatisfaction, and customer frustration.

#5: Misrepresentation

Finally, disputes between customers and businesses can occur because of misrepresentation. Misrepresentation is when you, as a company, provide misleading information about your products or services, causing consumers to make purchasing decisions based on false or overstated claims.

Contact a Business Attorney Serving Santa Clara and Silicon Valley

Do you need help addressing or resolving business transaction disputes? Contact the experienced business attorneys at SAC Attorneys LLP.

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