When shipping merchandise, is paying extra for “SIGNATURE REQUIRED” worth it ?
Short answer? YES!
Chargebacks with a reason code stating “Merchandise not received” or “Merchandise returned/services not rendered” is extremely common. Just because your customer signs the credit card receipt doesn’t mean the sale is done when the merchandise is being shipped. A sale is complete when goods or services are exchanged for monetary consideration. Consideration has happened but the exchange hasn’t.
Possession is the last part of this equation. When you ship an item to a customer you need to ensure they actually receive it. Just because the delivery person said they “left it at the door” or “on the porch” doesn’t mean they got it. A door or porch cannot take possession of a lamp, a human has to accept it and the only way we can prove this is by requiring a signature. Unfortunately, some people get upset at having to sign for something or go pick it up.
When I defend against NO REFUND policies, refused shipments are part of the process. A customer refusing to accept possession is different than it being delivered and not received. If consideration was agreed to and then they refused the shipment (the exchange), they backed out of the contract. If consideration was made and the items were delivered, the contract can be considered fulfilled. Credit card company guidelines can differ from actual laws. We are not in a court.
If you are shipping low cost, easily replaced, small items and have little to no chargebacks, then go for it. But if your ticket items are high and little wiggle room with replacement costs and employee commissions, then get that signature. Most carriers only charge anywhere from $2.50 to $3.50, a small price to pay for a potentially big loss.