4 Lessons Learned: Services

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. 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 from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of 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, 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, merchants can easily prevent chargebacks by simply offering superlative customer service. Remember that excellent customer service should be the foundation of your business. You have to invest on low-cost communication options for your customers such as a landline number or a 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, 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. You should implement 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, the merchant will benefit a lot from implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.