With the improvement of technology across the world, many businesses have shifted their operation to eCommerce, where they trade and transact with the online platform’s customers. However, with an increase in online transactions, these online platforms have become minefields for chargeback threats. With every transaction a business engages with customers, there is a risk factor of a prospect arising where a friendly fraud can occur, undesirable impulse purchases for customers, deliberate scams, and many other tricky shopping situations that may result in a chargeback on your business merchant file.
Supposing your business receive so many disputes, you will receive a notice, or your business will be listed. You may be wondering how you can reduce chargebacks and find the best companies that offer the best chargeback services. Here are tips to help your business reduce chargebacks that you get from your company online shoppers
Follow payment processing procedures
Each card processing system has specific practices for managing cards, not present transactions. It is essential that you all the customer information, which includes: customers IP address, use CVV and AVS verification or attain proof of delivery for stock that you ship. By following all the correct protocols, you will weed out all the fraudulent transactions before they become complete, and when you ignore them, the card network will rule against you when a chargeback row is filed against you.
Use familiar payment descriptors
One form of friendly fraud you will receive is when a shopper will fail to identify a transaction that takes place using their credit card statement, and they report it to their bank as a doubtful charge. Even if it is determined that it was a charge that the customer intended to make, it may be too little too late to keep the chargeback from being logged against your merchant account.
Ensure that all your payment descriptions are identifiable to your customers. For example, ensure that all your business names are the same on the online platform and payment description. Also, include a working phone number that customers can use to contact you first before they report to their bank for complaints.
Provide greater customer service
You can avoid complaints that end up become chargeback by encouraging your customers to contact you directly and resolve their problems instead of reporting to their bank. When you list your contact in your business description, it will be easier for them to reach you, and you listen to the complaint attentively and solve them to the best of their satisfaction. You will avoid chargeback in the end. In every complaint scenario that you encounter from your customer, a direct refund will cost you less than getting a chargeback on the same transaction.
Maintain excellent records
It is essential that you keep all the transaction records and back them up when a customer places an online order. This information will become important when a complaint arises, and you can produce them to show that the transactions were legitimate and done properly following the correct protocols
Finally, it is essential to note that as a merchant, there are many ways you can use to stop chargebacks from disrupting your business. You can analyze your chargeback root causes and ensure that you take all the necessary precautions to prevent them. For complex challenges, consult with an expert who offers chargeback services to assist.