For merchants, chargebacks are a part of doing business when you accept credit cards. It can be costly, time-consuming, and stressful to sort through legitimate and illegitimate (fraudulent) charges. But there are steps that can be taken to prevent them in the first place. Chargebacks911 provides a list of effective prevention tips that can help merchants run offense instead of defense:
Follow business best practices to reduce merchant error. Reference payment networks’ rules and regulations and obtain unbiased analytics on your business.
Be sure to use validation tools such as Address Verification Service (AVS), card security codes (CVV2, CVC2, etc.) and 3D Secure to help deter chargebacks.
Be sure to respond to customers and prospects by answering the phones quickly, replying to emails and chat requests, and tracking social media messages in a timely manner.
Clarify terms of service and rate changes, make cancellations easy, and fulfill requests promptly.
Before a sale, be sure to educate customers on potential shipping delays, back orders, and discontinued items. Track items and keep customers informed of where their delivery is located.
Provide accurate product information with detailed descriptions, clear pictures, and answer customer questions quickly.
Educate yourself and your employees on the red flags that could signal fraud. Validate suspicious orders and make sure your customers are aware.
Protect your customers’ personal data by maintaining a high-level of security compliance and consider offering EMV, tokenization, and/or end-to-end encryption.
Friendly fraud is when a customer files a chargeback instead of trying to first obtain a refund from a merchant. Track shipments, clarify your billing descriptors, and monitor any suspicious activity to avoid this type of activity.
Chamber members qualify for special pricing and a free review of their payment processing system, along with a quote from chamber partner Infintech. What do you have to lose? Contact Infintech to see if you could save.