Tips On How To Prevent Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is a huge problem for merchants because they won’t be allowed to apply for another account for the next five years.
According to the chargeback company, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Although there will always be customers that would take advantage of chargebacks just to gain free items, this doesn’t mean that merchants should just take this abuse.
In this article, allow me to share with you some tips that you may use as your guide when protecting your business against unfair chargebacks.
1. Your business must have an excellent customer service.
According to the chargeback company, if the merchant offers superlative customer service, he can easily reduce the number of chargebacks against him. Don’t forget that the foundation of your business is none other than excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. Investing on the training of your your customer service team so that they can easily handle difficult customers will also play to your advantage.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. If you make sure that all of your products have a detailed description, you will definitely avoid any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, most chargebacks are caused by fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.
4. You need a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. See to it that your network systems are secured so that your customers are also protected.