28 May Easy Ways to Reduce Chargebacks
Chargebacks are something that every business wants to avoid. Financial organizations often have complex and complicated disputation processions, which may involve fees. However, occasionally there are legitimate reasons why the customer would refuse to accept responsibility for the charge. For example, if the customer receives a damaged product or is the victim of fraud. Technical problems during the payment process, such as duplicate processing, can also cause chargebacks. Below are easy ways to reduce chargebacks and ensure smooth credit card processing transactions.
Always use a name or billing descriptor that the customer will recognize. One of the leading causes of chargeback is confused customers failing to recognize the charge name. Avoid using your personal name and ensure that your business name and receipt information match. For e-commerce websites, considering using the URL as the description. Always include contact information, such as a phone number or email address, on the receipt. This will encourage doubting customers to verify their purchase. Any chargebacks will come with a retrieval request, which usually requires a copy of the receipt. Promptly respond to all retrieval requests with legible documentation.
Always obtain an authorization for the specific amount purchased. Never approve multiple authorizations for a full sale amount on different cards. Instead, decline the transaction and ask for another form of payment. If the card does not successfully swipe, then you will have to key in a manual transaction. Be sure to imprint the card on the receipt with the CVD code and 3 digit authorization code showing. Always compare the customer’s card signature to the one on the back of the card. If there is no signature, ask them to sign it. If they refuse, ask for another form of payment. For e-commerce transactions, merchant accounts can utilize the Address Verification System (AVS). This will ensure that the order form address and the cardholder’s billing address are identical. Criminals using a stolen card will never use the real cardholder’s billing address. As a result, this will lower your processing fees.
Offering refunds are the easiest way to reduce credit card chargebacks and improve customer service at the same time. Always ensure that the return policy is printed on the receipt, which is signed by the customer at the time of purchase. Keep in mind that most providers of merchant accounts expect the return policy to be printed close to the area that the customer signs.
Credit card processing is an essential business transaction that can be improved through preventative techniques, ensuring an accurate payment process and having a refund policy.