Offering your customers the payment option of using credit cards is a necessary part of doing business. Consumers today expect to pay for goods and services in numerous ways, with credit cards usually at the top of the list. Doing so is convenient for both the business and the customer. However, the occasional credit card chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. is something a business must deal with and can be seen as an unfortunate side effect of offering this payment option.
What is a Credit Card ChargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder.?
A credit card chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. occurs when a customer asks their financial institution to return the funds charged for a particular transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account..... The reasons for requesting a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. can vary but are typically the result of a customer being unhappy with a purchase. However, chargebacks can also occur as the result of a fraudulent scheme. Customers will usually attempt to receive a refund from the merchantA business that accepts credit cards for goods or services. first, but if that fails, the chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. is a second option.
Requests for chargebacks aren’t always granted — the financial institution often engages in research, investigating the circumstances of the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... and whether a valid reason for a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. exists. If the financial institution sides with the customer, the funds are forcibly returned to the customer’s account.
As a business, losing the funds for a particular transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... because of a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. is bad enough, but merchantA business that accepts credit cards for goods or services. account providers also charge your business high fees for a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder.. If you experience too many chargebacks, your merchantA business that accepts credit cards for goods or services. services provider can raise your transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... costs or even eliminate you as a client. That’s why it’s important to learn how to reduce credit card chargebacks.
How to Reduce Credit Card Chargebacks: Tips and Best Practices
Chargebacks can occur because of many variables. Being prepared for all of them can help you reduce credit card chargebacks and prevent fraud. Consider the following ways to detect possible fraud and improve customer service efforts to reduce credit card chargebacks.
Follow the Proper Protocols
For starters, take care to always follow the rules and protocols of your merchantA business that accepts credit cards for goods or services. services provider and processing network. Each processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... has its own specific protocols. For example, using AVS and CVVCard Verification Value Service is used by Visa and is a three digit security number indent printed on the back of Visa cards to help validate two things: that the customer has a genuine visa card in their possession and that the card account is legitimate.... verificationThe point in which the lease company verbally verifies (confirms) with the merchant that the equipment has been delivered and that they understand the lease terms in full. for card-not-presentA merchant environment where the cardholder (and the card) is not physically present at the time of purchase. Typical card-not-present transactions take place in businesses focused on mail order/telephone order, business-to-business, and Internet-based transactions.... situations is an important step in fraud reduction for e-commerce businesses.
Verifying customer identities, checking expiration dates and signatures on credit cards, getting signatures on receipts, and making sure all bill details are legible are also common-sense practices for reducing fraud and potential chargebacks.
Use a Recognizable MerchantA business that accepts credit cards for goods or services. Descriptor
When a customer checks their credit card transactions, they’ll see a name associated with each charge. For example, if a customer rented a car from Avis, they might see Avis Rental as the merchantA business that accepts credit cards for goods or services. descriptor on their statement. If you use a merchantA business that accepts credit cards for goods or services. descriptor that is not easily recognizable as your business, the customer might become confused as to where the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... occurred. As a result, they might question it and initiate a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder..
Using a merchantA business that accepts credit cards for goods or services. descriptor that a customer can easily associate with your business eliminates this problem. Including a phone number in the description also provides an opportunity for the customer to call you to clarify anything first before attempting a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder..
Keep Good Records
You may not always be able to stop a customer from initiating a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. with their financial institution, but if you keep good records of each transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account...., you may be able to prove that a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. isn’t warranted. Maintain a good database of all transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... details — any small detail may help you prove your case that a purchase was legitimate and performed properly.
Practice Good Customer Service
Sometimes, one of the best ways to learn how to reduce credit card chargebacks is to simply provide excellent customer service. Consumers today base a lot of their shopping preferences and customer loyalty on which merchants provide the best customer service experiences. Seeking to resolve complaints directly with the consumer is a surefire way of reducing credit card chargebacks.
Take the time to listen to consumer complaints. Read customer reviews left on public sites and social media pages. Doing so can help you learn more about how customers perceive your business and its products or services. This enables you to make improvements to provide the best service possible.
If you can satisfy a customer complaint with a favorable resolution, there will be no need for the customer to initiate a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder.. Even if you have to give the customer a refund, it will still cost less than a resulting chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. and won’t likely damage your reputation with other customers or your merchantA business that accepts credit cards for goods or services. provider.
Use Fraud Prevention Tools
Many merchantA business that accepts credit cards for goods or services. providers and third-party apps offer fraud prevention features that can detect suspicious online orders. Using fraud prevention tools is highly recommended if you often deal with customers from other countries where e-commerce fraud is more prevalent.
Make Sure to Clearly Define Store Policies
Ensure customers can read your store policies pertaining to returns, exchanges, and refunds. This will eliminate confusion and provide further evidence to prove your case against a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. inquiry if necessary.
Use a MerchantA business that accepts credit cards for goods or services. Services Provider That Offers ChargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. Protection Services
Some merchantA business that accepts credit cards for goods or services. services providers offer increased protection for merchants. For example, NMA, a merchantA business that accepts credit cards for goods or services. advocacy group and merchantA business that accepts credit cards for goods or services. services provider, features a ChargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. Control Platform (CCP). This tool has direct access to incoming disputes because NMA hosts the merchantA business that accepts credit cards for goods or services. account. By intercepting inbound disputes before they become chargebacks, a business can effectively automate the refund process and handle alerts instantaneously. This helps save money and keeps your merchantA business that accepts credit cards for goods or services. account in good standing.
Help to Prevent Chargebacks
As a business, it is just a simple fact that occasionally you will need to deal with a chargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder.. But by understanding why chargebacks occur, as well as taking the steps to learn how to reduce credit card chargebacks, you can significantly reduce the frequency that they happen. A large part of reducing chargebacks is simply to promote good customer service and to seek a satisfactory resolution to customer problems. Being aware of how fraudulent transactions and their subsequent chargebacks occur can also help to reduce them. To learn more about the ChargebackThe act of reversing a sale made by the merchant. This can happen for many reasons including procedural and fraud. The process usually begins with a dispute from the cardholder. Control Platform and the many other features and services offered by NMA, contact us today. As a trusted partner and advocate in merchantA business that accepts credit cards for goods or services. services since 2004, we combine industry expertise with personalized service to create a positive impact for your business. NMA is A MerchantA business that accepts credit cards for goods or services. Account That Works For You™.