Top 6 Chargeback Prevention Tips
In the ever-growing world of e-commerce, disputes over purchase and sales of products and services are common. When irate customers call their credit card issuing banking partners for money back, such transactions are called chargebacks.
Though chargebacks are inevitable, too many of them can be highly negative for your business and future growth. This is why it is important for all online merchants to prevent chargebacks.
Here are top 6 tips for effective chargeback prevention for your online business:
1. Screening Payment Gateway to Avoid Fake Transactions
Avoiding any fraudulent transactions is probably the only effective way of preventing chargeback that follow. You should keep a close eye on all awkward activities such as the use of same credit card for multiple small orders within a short period of time. Keep looking for signs like oddly large orders too.
Also, make sure your payment gateway is able to save your business from credit card scams and frauds using:
- 3D secure facilities
- AVS checking and customer blocking
- A sound customer database of historical frauds
- Availability of telephone order verification services
2. Providing Email Confirmation Services
Make sure all your customers get email confirmations immediately after every transaction or purchase they make. If your customers don’t dispute their orders at the time of transactions, a well-maintained record of email confirmations will help you prevent any chargebacks on a later stage.
3. Shipping Orders on Time
Always send out packages on time and clearly mention in your shipping policy the time limit within which your consumers should take delivery of their orders. If you are working internationally, give preference to the orders and packages that will go through customs.
4. Asking Customers to Sign for Orders
Make it mandatory for your consumers to sign for their orders, for in most cases of chargebacks, customers refuse to have received their orders. Once a customer has signed for their package, you can use it to prove that the order was sent well in time as promised.
5. Requiring Customers to Submit their Documents
Require every customer to send you photocopies of all major document that clearly identify them, including credit card, photo ID, driver’s license and specimen signature approving the purchase. In case you need to fight a chargeback in future, you can easily prove that the customer had approved the transaction.
6. Customizing Billing Descriptor
You can prevent chargebacks with help of a customized billing descriptor, for consumers will recognize both your business and their purchases!
If there are questions that are unanswered in the above, just dial 855-267-8472 and our chargeback prevention experts will guide you through.