It doesn’t matter if you have a retail store, ecommerce site, or provide customers with a service- your business is vulnerable to chargebacks. Chargebacks mean a loss of revenue, extra overhead costs, higher payment processing fees, and even the potential of the bank shutting down the merchant account completely. And while it’s impossible to completely eliminate them, the goal is to prevent as many as you can! With that in mind we have compiled the 6 best tips to help your business avoid unnecessary chargebacks so that you can continue focusing on the things that really matter (like making more money!).
A chargeback happens when a customer challenges a charge on their card- and wins. Sometimes it’s fraud, sometimes it’s legit, but ultimately it means you’re not getting paid. These are the 6 best steps a business can take to prevent unwanted customer card disputes:
1. Be customer friendly: people often chargeback through the bank without reaching out to the merchant because it’s easy- so offering an equally simple return policy or exchange process, convenient access to customer service, plus a follow up after the return asking for reviews, can encourage your customers to contact your business first.
2. Offer enhanced shipping options: including features like faster shipping, package tracking, order status updates, item supply alerts, predicted delivery dates, etc. This allows the customer to keep an eye on their package so that there is no shipping or tracking confusion leading to a preventable chargeback.
3. Create a good payment descriptor: a common reason people chargeback is because they don’t recognize the billing descriptor from a business on their card statement. Having an easy to identify payment descriptor that is clearly posted at checkout will help avoid any unnecessary misunderstanding.
4. Manage expectations: customers have high expectations when it comes to the goods and services they are purchasing. Be as transparent as possible (especially if you’re an ecommerce site) with clear photos and accurate descriptions so that the cardholder knows exactly what to expect.
5. Use available technology: utilize a payment processor like Align ecommerce who can help enhance your payment security by easily integrating extra protective measures into your already existing system. Things like AVS (address verification systems) and CVV codes, especially for cards not present, will add to more secured purchases.
6. Train your employees: something as simple as training your staff how to recognize fraudulent transactions or verify signatures can go a long way in preventing sham purchases and useless chargebacks.
If you’re interested in personalized advice to reduce your chargeback risks, or if you want help disputing an existing chargeback, reach out to Align! From immediate alerts to the latest technology, we’re here to help.
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