As a business owner you must be using a merchant account to accept credit and debit card payments. A merchant account definitely helps you to grow your sales however it also comes with few challenges that rarely happens.
Chargebacks. Yes the customer gets a right to contact the card issuing bank and initiate a dispute which further becomes chargeback.
In what scenarios a card holder can raise a dispute. and also possible solution. Please keep in mind that in case of chargebacks your merchant account provider/PSP may not allow you to talk to the merchant. You may be asked to share all the proofs and defence documents to the Processors chargeback mitigation team. And you will have to be very quick in providing these details. If your Chargeback% crosses 1% of total transactions then the acquirer may also close your account.
- Fraud Transaction. Customer did not authorise transaction.(Here you will have to provide some kind of authorisation that proves customer gave you a go ahead for the transaction. Online ecommerce sites send a confirmation email to customers and most of the times it includes IP adress of the customer. In this case all you have to do is ensure that the acquirer and card holder knows that you had a prior authorisation for transaction. In case you did a fraud transaction then there is no way to fool the system) Be honest with your clients it helps.
- Product/service not delivered.(You will have to ensure to collect a POD(Signed Proof of delivery) Your agreement with logistics company may help you to collect the cost of the product and shipping if the mistake is of the shipping partner.(Investigate with the Shipping company and share the POD with acquirer)
- Product or service delivered but not in correct shape, size, condition.(If you have a good customer care team then this situation will not come. Still if you are sure then you may have to loose the case)
- Product/service lost or stolen.(Again get hold of your shipping company)
Is your merchant account in a tough position right now. If yes then contact Quadrapay today and we will help you with better solutions.
