Tips On How To Prevent Chargebacks
Consumer law exists so that the customers are protected whenever they decide to utilize 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. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. 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 easily avoid this by simply reducing 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, 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, merchants can easily prevent chargebacks by simply offering superlative customer service. Remember that excellent customer service should be the foundation of your business. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Make sure that your description for your items are clear.
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, 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.
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. See to it that your network systems are secured so that your customers are also protected.