How to Reduce Chargebacks

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Businesses pay for every transaction they process, and usually a penalty for chargebacks. Chargebacks are not good, they amount to a dispute between the credit card company, and whoever is trying to collect from the customer. Too many of these, and your account could be revoked or put in the “high risk” category. In this guide, you’ll learn how to reduce your odds of facing one.

Let Customers Know Your Policies

Major retailers print out their return statements on the back of a receipt because they know that customers will need that information sooner or later. Not every store has that option, so put a page up on your website in addition to having something at the register. Reminder your employees to tell customers your return policy. Don’t be afraid of returns, they are a marginal part of doing business, and customers will usually buy something else from you to replace the return.

Refunds

Some store owners think refunds are bad, so they offer store credit only. On some items, it’s unavoidable, but refunds are good for the customer and your business because they avoid chargebacks. If you decline a refund, and the customer disputes the charge, then you’ve lost a customer and taken a ding on your merchant account.

Check ID

Trust but verify. Ask your customers to present ID for any transaction involving their card, make sure you check the ID and that you check the CVV or CVV2 code to complete the transaction. Some of these measures can be taken periodically, others should be done every transaction.

Fulfillment

When you’re shipping to customers, make sure your fulfillment is as soon as possible. It’s important to send packages to customers before they decide to chargeback. If you can, include a tracking number and email the customer updates on his or her order.

Blog submitted by Charge.com: Charge.com provides an efficient way to handle your business transactions. With decades of experience, let Charge.com be your merchant account provider for your business today.