How to Avoid Chargebacks

Ship to address: With most merchant accounts, a company can force the buyer to use his or her address on file with the credit card company or bank. This takes away an incentive for thieves as most people will not drive to another house to pick up an order. In reality, when confronted with this, most criminals will not even bother as they will have no real chance at committing fraud and will instead move on to another potential victim.IP Address: With a credit card processing account, a website owner can verify the IP address of a client. This makes things easier as an employee can verify the IP address against the credit card billing address. For example, when a visitor from California orders a product or service while on a computer in Russia, the company can decline the order or, at minimum, verify the legitimacy. Remember, this is a common scam as people from the rest of the world are immune from prosecution in most cases and will attempt to fraudulently use a card.

Work with the customer: When a buyer has an issue, the company should speak to him or her and try to resolve the issue. To do so, a website creator must put a contact us page that people can find without much searching. With this page, a client should have no trouble voicing their concerns and trying to rectify the problem. Otherwise, when a company does not offer support, a customer will initiate a chargeback. Furthermore, a business owner will probably lose as most merchant account firm’s side with the paying customer unless it is obvious fraud. While it hurts to offer refunds to customers, it is better than a chargeback which will cost the company a lot more money and hurt its reputation.

With these three reasons, it is obvious why an entrepreneur should avoid chargebacks. Fortunately, with these tips, one can avoid angering customers and hurting their relationship with the credit card processing company providing the service.