So, what is a chargeback? It is a bank-initiated refund for a purchase made with a credit card. However, the main difference with a traditional refund is that a refund doesn’t get the bank involved in returning the money. A chargeback will occur when a credit-card provider will make a demand to make up the loss on a fraudulent or disputed transaction. These can prove to be complicated and expensive, and your business will want to avoid this. Our team at Axcess Merchant Services have outlined some of the ways in which your business can avoid these chargebacks.
Fraudsters search for every loophole and bug in outdated software, so update your website regularly and avoid clerical or technical errors. Encrypt the data on your site, consider using the Address Verification Service (AVS) that verifies the cardholder’s address, and collect the CVV/CVC.
When the description is incomplete or doesn’t match the product received, there are higher chances that the customer will file a chargeback. The more details you provide, the better. Also, remove items that are no longer available.
Ensure the payment processor you work with provides anti-fraud tools with machine learning, AI-based solutions, and an efficient chargeback disputing mechanism.
Having a dedicated team that oversees queries and returns can ensure that a customer does not issue a chargeback. By having someone in place to deal with this, the customer can contact the business directly before issuing a chargeback straight away.
Make your refund policy visible for website users and make it simple and easy to understand. Offer a refund when a customer isn’t satisfied with an ordered product. Provide detailed information on how to return the item and request a refund. It can help you prevent chargebacks and avoid negative reviews. Furthermore, set clear return policies. Return management can be less expensive and comes with less hassle than dealing with chargebacks.
Added services such as Ethoca and Verifi can assist with eliminating chargebacks whether from fraud, friendly fraud, or disputes. Both services offer a global network that allows issuers and merchants to share information in real-time allowing you to put in place steps to avoid the chargeback process altogether.
If you want to find out in more detail how Axcess Merchant services can assist you with your reducing or preventing your chargebacks, contact our team today!