Tips On How To Prevent Chargebacks
Consumer law exists so that the customers are protected whenever they decide to utilize their credit cards. If a fraudster steals their credit card information and the merchant refuses to refund their money, the owner can call his credit card company in order for him to get his money back. Although this benefits the customers, the same thing cannot be said for the 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, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Although there will always be customers that would take advantage of chargebacks just to gain free items, this doesn’t mean that merchants should just take this abuse.
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, 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. You have to consider having low-cost communication options for your customers like a landline number or even a 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. Be clear when it comes to the items your customers are buying.
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 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. Teach your employees how to easily detect fraud before they process any purchase.
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, 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.