Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Returns...
New Posts  All Forums:Forum Nav:

Returns... - Page 3

post #31 of 89
Thread Starter 
I'm now thinking if I should even go with PayPal if they give the customer all the power...??
post #32 of 89
Quote:
Originally Posted by BakerBee7468 View Post

I'm now thinking if I should even go with PayPal if they give the customer all the power...??

My friend had her money given back to her by paypal, so they don't always go with the customer.

My contract is 4 pages long and covers the same situations as mentioned before. The first page is the cake specifics, the second page is the money breakdown, the third and fourth are the legalese. I also have clauses in there about wobbly tables, room temperature for the cake, hurricanes and a bunch of other stuff that I've run into over the years. I tell brides that my contract makes me look mean because it covers so much, but I'm easy to work with. They usually say "it has to cover you," then they sign it. When you compare that contract with the contracts from the venues they have to sgn four pages is nothing.

I've had one person ask me to change my contract and I said no.

As far as the binding arbitration/mediation goes, i have in there that any disputes have to go through the BBB mediation services in Virginia, and my attorney said that if someone drags me to court before they use mediation she would be able to say that they had agreed to that and have the case dismissed. Since I'm a BBB member it's free for me to use.

I wrote about the credit card pullbacks last August on my blog, so it's been going on for a while, but I've definitely noticed it more recently. http://acaketorememberva.blogspot.com/2012/08/whats-up-with-all-credit-card-scammers.html
post #33 of 89
Quote:
Originally Posted by cazza1 View Post

I would be very interested to know if this problem with people trying to get free cakes is mainly an American thing or if it is happening widely in other countries as well.

 

Where I've lived in Asia (3 different countries so far), getting refunds in general is not the norm- with anything. There isn't the 'customer is king/always right' thinking here at all. But haggling and trying to negotiate a lower price is the norm (with everything) so there is a lot of that going on. 

post #34 of 89
Quote:
Originally Posted by BakerBee7468 View Post

I'm now thinking if I should even go with PayPal if they give the customer all the power...??

 

sorry I shouldn't have said they always side with the customer..evidently they don't but in our case they did. We still use Paypal though-it's a necessity for our business. 

post #35 of 89
Quote:
Originally Posted by cakefat View Post

 

sorry I shouldn't have said they always side with the customer..evidently they don't but in our case they did. We still use Paypal though-it's a necessity for our business. 

Sometimes it isn't paypal either, I actually did have one psycho who pulled a payment back, long story. It was put through using paypal so the pullback came to me with a notice from paypal. But she had disputed it with her credit card company, not paypal. So they had no control over the details, it was Amex that was handling it. They had to wait until Amex decided what to do, They eventually gave me the money back, but even though I was dealing with Paypal, not Amex, it really wasn't paypal making the decision. It gets complicated because paypal isn't the credit card company, they're just processors. But since they also take money straight out of bank accounts sometimes they're the ones making the decision. I had to send all my supporting info to paypal, then they sent it along to Amex, who was the company handling the dispute in this case. They couldn't give me any details during the process because Amex had all of that and wouldn't release it to paypal.

post #36 of 89

So to make a long story short, don't blame paypal, if you used a different card processing company they could still dispute the charge and get it pulled back.

post #37 of 89
I usually recommend against using PayPal unless it's absolutely necessary (e.g. international customers with no other way to pay). PayPal is not a bank so they don't have to follow normal banking rules. They can freeze your entire account with no notice due to a dispute or any other reason. And, as mentioned above, they give customers two chances to dispute: once with PayPal and once with the credit card company used to fund the PayPal purchase.
post #38 of 89
Thread Starter 
I searched online to see what other people were saying about PayPal and all I found were complaints from sellers saying they sided with a customer, that they didnt investigate like they should have, the buyer got their money back after disputing it even when the seller provided documentation and in some cases froze seller accounts. I think I've decided against PayPal for the time being and look for other methods for payment. A way that gives me more power over my account, payments and refunds
post #39 of 89
Quote:
Well if your business structure is so that your personal assets are separate from business like in an LLC then u can't lose your house because of someone sueing your business. All that seems necessary to have in your contract so good luck with condensing it.

 

Thanks BakerBee :0)  I'm starting out as a sole proprietor for now and that is why it was important to me to get a good contract and extra insurance coverage, but I plan to go either S-Corp or LLC once my business starts making a decent profit and I can afford the automatic tax to CA.  I only do this less than part-time, so that may take a while, lol! 

post #40 of 89
Thread Starter 
Could you either put in your contract or have people sign a separate sheet saying they like their order, happy with it so that if there is a charge back later you can use that to send to the credit card company to keep your money. Or I was thinking that when I deliver the order or they come to pick them up, they'll try one cupcake and will say whether they like it or not. If not i keep the order and don't charge them the reminder of the price they owe but keep the non refundable deposit.
post #41 of 89
Quote:
Originally Posted by BakerBee7468 View Post

Could you either put in your contract or have people sign a separate sheet saying they like their order, happy with it so that if there is a charge back later you can use that to send to the credit card company to keep your money. Or I was thinking that when I deliver the order or they come to pick them up, they'll try one cupcake and will say whether they like it or not. If not i keep the order and don't charge them the reminder of the price they owe but keep the non refundable deposit.

If there is a taste or texture issue the customer wouldn't know that until the cake was served, and even if they tried a cupcake they could still claim they were not satisfied with the cake since it is a separate item.
post #42 of 89
Thread Starter 
Quote:
Originally Posted by sweetalexjane View Post

Thanks BakerBee :0)  I'm starting out as a sole proprietor for now and that is why it was important to me to get a good contract and extra insurance coverage, but I plan to go either S-Corp or LLC once my business starts making a decent profit and I can afford the automatic tax to CA.  I only do this less than part-time, so that may take a while, lol! 
The same with me. I will start off slow but I want everything in place before I even start. My customers when I officially start up will be people I know so I won't have this headache to start with but like I said I'm going to have everything well thought out and set up for when I take on more customers. If you do a single person LLC then you will be taxed as a sole proprietor but your personal assets are safe.
post #43 of 89
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

If there is a taste or texture issue the customer wouldn't know that until the cake was served, and even if they tried a cupcake they could still claim they were not satisfied with the cake since it is a separate item.
I will only be selling cupcakes, cake pops. No wedding cakes.
post #44 of 89
Even if the entire order is cupcakes, trying a sample does not necessarily guarantee that all the cupcakes are up to par from the customer's (or the credit card company's) perspective. I think it also may send the wrong message if you require the customer to taste a cupcake before you can release the order...the customer may not even be there when you drop it off.
post #45 of 89
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

Even if the entire order is cupcakes, trying a sample does not necessarily guarantee that all the cupcakes are up to par from the customer's (or the credit card company's) perspective. I think it also may send the wrong message if you require the customer to taste a cupcake before you can release the order...the customer may not even be there when you drop it off.


Seems then, like many have said the only way around this is to accept cash only, checks and cash for deposit, possibly money orders. 

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Returns...