Tips On How To Prevent Chargebacks
Consumer law exists so that the customers are protected whenever they decide to utilize their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Although this benefits 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 fees and fines from banks will pile up and a lot of merchants will lose money. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.
According to the chargeback company, merchants can prevent this from happening by simply controlling the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Make sure your business provides excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Remember that excellent customer service should be the foundation of your business. You have to consider having low-cost communication options for your customers like a landline number or even a web chat. Investing on the training of your your customer service team so that they can easily handle difficult customers will also play to your advantage.
2. See to it 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 provide them with a detailed product description, there will be very little scope 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 should implement a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, we can do this by simply implementing a secure payment system. See to it that your network systems are secured so that your customers are also protected.