Unfortunately, even the greatest businesses are not secured from chargebacks. For instance, while you were busy adding new merchandise on the website, clients noticed the breach…”. And then, we can add the part about a payment gateway to the next sentence, and change it like this: “To avoid the unpleasant surprise of your customers filing credit card disputes, you may use preventive measures, like finding an advanced payment gateway, and more.
Chargeback is a result of a customer dispute that went successfully for a dissatisfied customer. To receive a chargeback, customers send a complaint, wait for the dispute to finish, and receive the payment they made on the merchant’s website. The business owner does not receive payment in this case. You will also have to pay a fee for this transaction.
From time to time, frauds are using chargebacks to receive payments. Although chargebacks were founded by FCBA, as protection of customers in 1974, it is widely used by frauds nowadays. Sometimes this situation happens because of a bank mistake, and it is better to start the investigation by yourself if such a situation occurs. Banks may protect you from frauds if they find the scheme, but sometimes criminals simply get away with their actions.
Simple Ways to Avoid Chargebacks
If you receive the chargeback to pay, you have to think about your mistakes in the first place. It may be the quality of product or problem with delivery services. Don’t blame your customer without doing the research in the first place. Businesses usually suffer the most since they have to provide:
- Payments for the lost processing;
- Total refund of the customer’s payment;
- Redistribution expenses;
- The labor cost of management;
- Fees for the chargeback;
- Extra money for advertising and reputation renewal, since many clients can leave you if the customer writes negative reviews.
Clarify dispute and return process
You don’t have to wait till your client files chargeback using the credit card company services. It would be less painful for your business if the client could contact you first. Using your website to file a return request or start a dispute has to be even easier than at the credit card providers.
You can make the return service advanced by following the next rules:
- Create the FAQ page on your website and add the return section to it. Check out the most popular questions about the return online, and provide your own answers. Make the process understandable;
- Support every purchase from your website with the email and friendly reminder that client can leave their reviews, share concerns or ask questions directly;
- Create a system that allows customers to track the return process;
- 24/7 customer service is a must if your business is suffering from chargebacks. You can leave the chatbot until the store is open. Write down an email. Make the communication in your store available for customers as well;
- Free shipping return may be expensive, but it may save your money on chargebacks. You can provide this function to the customers;
- Ask every customer to leave a review or rate your services.
Advanced Payment Services
There have been multiple frauds with Visa and Mastercard card owners during the last several years. The majority of such cases are connected with card-not-present transactions. You can still prevent the problem by using the following measures:
- Use address verification service;
- Use email verification;
- Alert on chargeback prevention;
- Use validation tools;
- Check the phone number by sending the confirmation code;
- Confirm billing address and shipping;
- You can use a fingerprint safeguard system;
- Limit the number of products customers can order during a day;
- Ask for the card verification value codes.
Usually, customers are willing to cooperate with you. Frauds will not be able to provide all the information you want. You will significantly reduce the chances that you will get attacked by fraudsters.
Educate your staff
Many disputes can be avoided if customers receive understandable instructions and the ability to talk to the staff. Employees are usually the key to the peaceful life of your business. Those who work with customer transactions must be well-educated and trained about all the services they provide. You have to talk with them about chargebacks and discuss the best ways to avoid the problem.
There are lots of programs that offer training for employees on Automated Clearing House payments. You can also hire a professional lecturer to teach your team. Let your staff practice by creating possible disputes and check how they handle them. Try to reach dissatisfied clients as soon as possible by offering the proper solution.
Learn the chargeback information
You have to understand why the customer asked to return the money. If it is one case, you can relax, but if there are several cases of chargebacks, you have to analyze the data and find the main cause of the problem. You have to save this data and keep it somewhere near so you can always compare one case with another. If the problem is with the doubled transactions, for example, you have to fix the system as soon as possible. There is software that allows you to monitor the situation with your business, including fraud prevention.
Improve shipping process
Shipment is one of the most popular complaints and the reason to start a dispute. Customers may receive the wrong package or a damaged product. Besides, some delivery services can lose packages or delay their transportation. To avoid chargebacks, you have to take care of shipments:
- Offer detailed information about the shipment, including the tracking number, the exact date of delivery, the current status of the order;
- Notify your customer about the possible delay the very moment you find out about that;
- If the product is not in stock, it will take a longer time to deliver it. Make sure that your customers know about it;
- Dropshippers must be reliable. If you are using a new company, make sure it has a stable reputation and positive reviews.
Avoid Chargebacks by Reaching Clients
Get to know your customers to make sure that they are not scammers or fraudsters. Your staff must always be reachable to them. Communication has to be understandable and direct. Follow the simple rules mentioned above and avoid unnecessary payments and loss of your profit.