Tips On How To Prevent Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Although this benefits 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. In addition to this, the bank can even close the merchant’s account which will eventually shut down his business. 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. Yes, it is true that there will always be some customers who would take advantage of chargebacks to gain goods for free, however, merchants can still do something to defend their business against unfair chargebacks.
In this article, we will be discussing some tips that will help you protect your business against unfair chargebacks.
1. Make sure your business provides excellent customer service.
According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.
2. Make sure that your description for your items are clear.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, you can easily avoid chargebacks by simply, being vigilant to fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.
4. Your business needs a secure payment system.
It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.