Tips On How To Prevent Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Although this benefits the customers, the same thing cannot be said for the merchants.
Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. 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 a major problem for merchants considering the fact that they cannot apply for 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. 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.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers 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. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.
2. See to it that your description for your items are clear.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. 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, by simply being vigilant on fraud, merchants can easily prevent chargebacks. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.
4. Your business needs 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.