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 fees and fines from banks will pile up and a lot of merchants will lose money. 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 without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.
According to the chargeback company, merchants can prevent this from happening by simply controlling the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. You have to consider having low-cost communication options for your customers like a landline number or even a web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, one effective way to reduce the number of chargebacks we receive is to make sure we provide our customers with a good product description. If you provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. Be on the look out for fraud.
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.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, we can do this by simply implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.