Categories: Money

8 Steps to Avoid Chargebacks and Protect Your Business

What are chargebacks?

Chargebacks refer to the credit or debit card issuer due to the cardholder’s dispute.  It is not different from a refund, which involves a reversal of funds. Chargebacks take the issuing bank funds from the business account. They hold the money as they investigate the dispute’s legitimacy. Finally, return the funds to the customer if it is a legitimate claim.

8 Steps to Avoid Chargebacks and Protect Your Business

1. A clear return policy

Your guidelines must be clear to help customers understand online payments and their options. It will prevent transactions from reversing. Ensure the refund policy of your business is clear, and display the return policy. Be specific about restocking fees.

2. Include detailed product descriptions on the website

The aim is to make the buyers buy things without confusion. Maintain a crisp online inventory with product details for the consumers to be sure of their purchases. Write clear product descriptions and stay transparent. It prevents chargebacks and promotes brand reputation.

3. Make customer service available easily

It sounds simple to give your contact information, phone number, and email address. Ensure the customers can avail of your service directly. It ensures fraud prevention and helps to speak before filing for disputes. Protect your business by not leaving emails or calls unanswered. Not receiving a response is frustrating. Automate your email and phone so that the customer feels happy about your customer service.

4. Use a payment descriptor

An online business should use a payment descriptor bearing the merchant’s name. The thumb rule is to ascertain the descriptor reflects in such a way that the consumer recognizes it easily. The details should have the credit card statement as they buy from you enabling fraud prevention.

5. Use shipping confirmation

Shipping confirmation works like insurance. Using it, you can track the product’s receipts, and it helps to prove the shipped goods reach the consumer. Clients mostly expect fast shipping, but medium and small businesses should mention the shipping times. It helps businesses maintain online inventory. It is a must to give a copy of the shipping confirmation to the customer after their purchase. It is best to specify the shipping policies on the website.

6. Avoid manual keying of credit card numbers

A business using secure methods for payment means the payment processing rates will be low. It means the risk of the chargeback is higher. On the other hand, the swiped or EMV chips-dipped transactions are tough to dispute. Considering these are helpful.

7. Analyze incidents asking for a chargeback

Take considerable time to review and analyze the incidents of chargeback. Having detailed records helps in fighting chargebacks. Your employees must be aware of the payment protocols of the company and should follow each transaction. Being leery of purchases with credit cards is a must. Before any payment is processed, it is best to investigate the charge and check its genuineness. Credit card companies have a set of protocols. It includes sending fraud alerts to businesses and consumers to safeguard them.

8. Ask AVS (Address verification services)

Online payments imply following security precautions to solve the dispute on false chargebacks. If so, you need address verification services such as CVVs and zip codes. As your business gives evidence of providing the purchase, there are better chances of engaging the dispute. Obtaining the customer’s signature helps protect your business, and you can illustrate the transaction was genuine.

Recent Posts

Benefits Of Hiring A Content Marketing Consultant For Your Business [INFOGRAPHIC]

Are you looking to level up your content marketing strategy? Consider hiring a content marketing…

1 day ago

9 Steps to Improve your Business Forecasting [INFOGRAPHIC]

Sales Business forecasting strategies are a vital part of any business. Although essential, this process…

1 day ago

Top Reasons To Consider An MSP For Your IT Needs [INFOGRAPHIC]

In today’s fiercely competitive business environment, effectively managing IT infrastructure presents a significant challenge. Businesses…

1 day ago

Top Ludo Apps For Paise Kamana In Your Free Time?

Thanks to Ludo apps, earning money while enjoying your favourite games has never been easier.…

2 days ago

Why Your Website Needs An Update For 2025

As we approach 2025, the digital landscape continues to evolve at an unprecedented pace. What…

2 days ago

3 Most Instagrammable Watches You Need to See

When it comes to curating an eye-catching Instagram feed, the right accessories, especially Instagrammable watches,…

2 days ago