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. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Despite the fact that chargebacks are legal and every customer has the right to request for one when necessary, too much chargebacks against a merchant can damage his business big time. 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 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 easily avoid this by simply reducing 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.
In this article, we will be discussing some tips that will help you protect your business against unfair chargebacks.
1. Your business must have an 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. 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. Make sure that your description for your items are clear.
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 have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. Be on the look out for fraud.
According to the chargeback company, most chargebacks are caused by fraudulent activities. Invest on the training of your employees to make sure they are capable of spotting any fraudulent transactions.
4. Your business needs a secure payment system.
Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, we can do this by simply implementing a secure payment system. See to it that your network systems are secured so that your customers are also protected.
Source: here are the findings