How To Protect Your Business Against Unfair 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. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is a huge problem for merchants because they won’t be allowed to apply for another account for the next five years.
According to the chargeback company, merchants can easily avoid this by simply reducing 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. Provide them with excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Keep in mind that the foundation of your business is excellent customer service. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.
2. Make sure that your description for your items are clear.
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 have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
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 need 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. Make sure that your network systems are secured and that you protect your valued cardholders.