How to Fight Chargebacks
Article submitted by: Solid Trust Pay
Chargebacks are every online merchant’s worst nightmare. The merchant has a lot to lose and it is not always easy to find evidence to prove that the customers claim is false and even if you do prove the customers claim is false you still end up having to pay a fee to the merchant bank.
Chargeback claims can be made for several reasons like fraud, customer disputes, authorization issues and technical issues. With chargeback being a very serious concern for the future of online trading what measures one could take to prevent chargeback?
The best way to deal with chargeback is to take precautionary matters to avoid chargeback since dealing with it after is happens is a tedious process. But when there is a chargeback how do you fight it?
Have up to date sales records- this is the first thing you can provide as proof to show a legitimate transaction did occur. Other records such as tracking records from the delivery service, delivery notices from the warehouse will all be helpful to fight chargeback.
Take prompt action – the sooner you respond the better your chances of disproving the chargeback claim.
What steps can be taken to prevent chargeback?
Use an Address Verification System to make sure that the billing address of the credit card and the delivery address are the same.
Use your corporate name on the credit card statement since a different name can cause the customer to be suspicious and challenge the charge.
Display refund policy – have a sound refund policy and make the customer fully aware it by having the customer agree to it before making the online purchase, this will deter him from claiming chargeback.
BIN (Bank Identification Number) blocking – have a list of all the credit card numbers that have claimed chargeback in the past and use this to filter potentially fraudulent customers.
Secure delivery service – it is best to use a delivery service which has tracking facilities. Have a policy to have the cardholder sign acknowledging delivery, this way a dispute cannot arise regarding the delivery of the goods.
Be cautious to avoid technical issues – make sure you double check the amount you enter to avoid charging the wrong amount or make duplicate charges.
Take all necessary measures to avoid chargeback as this can have a very adverse effect on your business. Frequent chargebacks from your customers will prompt your merchant bank to categorize you as a high risk merchant and worse will even terminate your merchant account and add your name to the Terminated Merchant File thus disabling your credit processing facilities.
Chargeback should never be taken likely and it can very possibly happen to you, so take precautionary measures to prevent chargebacks from the inception of your business to safeguard its future success.
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