How to avoid Charge backs on Credit cards

Many struggling merchants want know this . How to avoid Charge Backs on Credit Cards.

Charge-backs are disputes raised by buyers . There are 3 major reasons of charge-back.

A :- Product / Service Not Delivered

B :- Low Quality Product or Service

C:- Fake Transaction

Keep the product/ Service description as detailed a possible.

Sometimes buyers put a refund or charge back 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 descriptor.

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 happen.

Refund is better than charge back

If the buyer is dissatisfied don’t push a lot for retention issue refund. Refund and stay away from charge backs

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 buyers email

Be Responsive.

Keep the customer in loop about every transaction. Send all transaction related info of the specific order including descriptor to avoid friendly charge back.

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 Checkout page. Some merchants mention it on the footer of the website.

Take the approval for a text message on the checkout page. Send the Confirmation sms on registered mobile number.

This ensure 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 Charge back Flow

A:- Buyer Raises a Dispute with the card issuing bank or authority

B: Issuer starts to act very fast because the card user is the customer of the Card Issuer

C:- Issuer sends the Info to the Card association. Card Association follows and implements the dispute process.

D:- Merchant account Acquirer get the case info from card association

E:- Merchant / Seller Receives the information that the buyer raised a charge back.

F:- Charge-back representation document is sent to the Acquirer.

G:- Issuer receives the representation documents and send to the previous channel for dispute resolution.

H:- 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.