10 Steps to Reduce Chargebacks

The truth is that chargeback initiatives are going to occur for a wide range of different reasons and they could cost the merchant a lot of effort, time and money to deal with. With this in mind, we’d like to bring to your attention 10 quick ways to reduce the amount of the chargeback claims that your company receives. This is a type of risk management which is designated to spare you quite a lot of money.

Transparency is key

Well said that transparency is key, you customers should aware about what you are selling to them. They must have a clear vision about the product or services they are willing to purchase. There shouldn’t be anything hidden from your customer. They must be aware about the pricing structure and should have complete information for which they are paying.

Respond as quickly as it’s possible

You need to respond by the date which is stamped on the enquiry letter. With this in mind, even if the customer has no merit, failing to dispute the claim on time would render you responsible for paying it off.

Use CVC2 as well as CVV2 Verifications

Visa has definitively said that this could actually reduce chargebacksby up to 26%. This is an extra layer of security that’s going to help you against fraud. If somebody trying to make an order online using only 16 digits of other’s card with the intention of fraud cannot succeed.

Use AVS (Address Verification System)

You need to be very cautious of orders which contain different addresses. People who have been using a stolen card number, for instance, are never going to use the real billing address. If you are using AVS system you can reduce fraud in your business. AVS system will ask your customers to processed with the correct billing address of the card they are using, if they would failed to provide correct billing address the transaction will not take place.

Terms and Conditions should be visible

Make sure you website should disclose the terms and conditions in proper manner so that customers can read carefully before they made the purchase. By this way, your customer will aware about product / services and will be aware about the delivery of them along with the charges they are going to pay.

Inform Customers About the Name on the Statements

Let your customers know properly about what name will going appear on their credit card statements for the purchase will help them to recognize the transaction. Sometimes customers dispute the transaction due to non-recognizable name appearing on their statements. Make sure the customer identify your business or website by your descriptor.

Get the Signature

If your business is product based and you deliver the product upon order, you can get signature from the customer on delivery receipt as confirmation of delivery. Your courier partner can helps you to get signature from your customer, it’s known as valid proof of delivery.

If you are running a service based business like tech support, you can get signature from you customer electronically using any e-Signature software on the delivery of the services. The customer will be aware of the validation of the services.

Request a Copy of ID

If you have a copy of your customer’s ID / credit card for the transactions, you can rest assured that everything is in line. This is going to help you reduce chargebacks.

Be Careful for Foreign Orders

 A large portion of the orders which are fraudulent are going to come from places such as Africa, Asia as well as the Middle East so are very cautious. Verification process is requiring on foreign orders. You should call to the customer to verify the accuracy of the transaction once they have entered their information on the website to place the order.

Implement Chargeback Management System

Hire a chargeback expert or at least consult one if needed. This is going to help you implement strategies which are viable and actionable, allowing you to rest assured that you are doing the right thing. Chargeback Management Companies has better knowledge and experience about chargebacks and their process. They are dealing with it from long time and can understand the nature of your business. Their chargeback Management System helps you to see everything real time. You can optimize the process of your business with help of Chargeback Management System. Chargeback Prevention System helps to grow revenue of your business. It can prevent the chargeback before it’s originally disputed. It will save your time, money and also keeps you apart from whole chargeback process.