AVOIDING CHARGEBACKS AND FRAUDS
Quick And Simple Ways Ways To Avoid And Reduce Chargebacks So That Merchants Increase Profit Percentage. You will be able to extend the life of your credit card processing merchant account.
HOW TO AVOID CHARGEBACKS ON CREDIT CARDS
Many struggling merchants want to know this. How to avoid Charge Backs on Credit Cards. Charge-backs are disputes raised by buyers. There are 3 major reasons for chargebacks.
- Product / Service Not Delivered
- Low-Quality Product or Service
- Fake Transaction
- Keep the product/ Service description as detailed a possible.
Sometimes buyers put a refund or chargeback request when a Low-Quality Product or Service is delivered. Putting the correct product and service specification on the website or email. Show what you sell. Send what you Show.
Use a meaningful and relevant descriptor
Make sure the descriptor relates to the company. You may put the website, company name or Phone number is the descriptor.
Use Chargeback Alert and Notification services.
There are many companies offering reliable chargeback alert services. You can use these services to get alerts and reduces the chances of getting high chargebacks.
Mention the proper shipping and delivery dates
Set the correct expectations. Put the correct shipping time frame and offer tracking details to the buyer.
Use a credible shipping company that provides online tracking
Don’t use cheap and non-professional shipping companies. Use the one on which you can rely. Don’t let the shipping company play with your brand.
Use shipping insurance
Shipping insurance helps to recover the cost of the product for when it is lost or stolen within transit. Resend the product if anything like this happens.
Refund is better than a chargeback
If the buyer is dissatisfied don’t push a lot for retention issue refund. Refund and stay away from chargebacks
Avoid Drop Shippers
Some drop shippers delay the shipping and spoil the overall brand of the company avoid that kind of drop shippers. Use your own supply chain system
Delay the orders which look fishy and send the information to the buyer
Are you are skeptic about the genuineness of any order. Delay the shipping. Confirm all elements including verifying with the buyer and then send the products.
Orders placed by stolen cards are very common these days. You don’t want to play with fire.
Take the confirmation email / Docusing
Get everything in writing from the buyer in form of Email or DocuSign. Send a copy of offer acceptance to the buyer. Send all the terms, descriptor name and Voice verification file for records to the buyer’s email
Keep the customer in the loop about every transaction. Send all transaction related info of the specific order including descriptor to avoid a friendly chargeback.
Be proactive with support over email, Chat, Web, and Phone
Open up and extend communication and support. Be available for your buyers. Your Corporation depends on them.
Use a secure SSL URL for the payment page
Make the transactions on a secure URL. Use high-quality encryption with SSL.
Mention the descriptor on the payment page
Descriptor must be visible on the Checkout page. Some merchants mention it in the footer of the website.
Take the approval for a text message on the checkout page. Send the Confirmation SMS to the registered mobile number.This ensures mobile verification.
Use Fraud Filters. Check IP, Geo Location, and failure entries. Implement Velocity Check
Use technology and make it work as hard as you. The modern fraud filters work pretty well in stopping online frauds.
Keep track of the affiliate sales
Make sure you keep tracks of the orders coming via the affiliate network. You never know if the affiliate is putting fake orders using stolen cards to make some commissions.
PCI compliant merchants must follow strict data protection as the servers hold all credit card info.
Understating the Chargeback Flow
- Buyer Raises a Dispute with the card issuing bank or authority
- Issuer starts to act very fast because the card user is the customer of the Card Issuer
- Issuer sends the Info to the Card association. Card Association follows and implements the dispute process.
- Merchant account Acquirer get the case info from card association
- Merchant / Seller Receives the information that the buyer raised a chargeback.
- Charge-back representation document is sent to the Acquirer.
- Issuer receives the representation documents and sends to the previous channel for dispute resolution.
- Issuing bank decides the result based on the Charge-back Code and re-presentment document.
- In this situation either the buyer wins or the Seller wins
Suggested reading https://quadrapay.com/can-go-jail-chargebacks/