Almost all US merchants are familiar with the term chargeback. The mere word raises their blood pressure.
No merchant would want to have a chargeback but the reality is you are bound to face them in your online business.
In simple words, chargebacks are the reversal of credit card transactions. They can be pricey in terms of energy and money spent in the dispute.
It is important for every member to understand chargebacks and use the right tools and knowledge to prevent them from occurring.
Prevention is the first defense of a merchant against chargebacks. Usually, it exists on online purchases.
Regardless of the eCommerce website you own, you have two categories of chargebacks: fraud and scam activity, processing errors, customer-related and non-fulfillment of copy requests.
Non-fulfillment of copy request:
Consumers or banks may ask for a copy of the sales. Find out the right process for copy requests. Usually, merchants answer within 12 days of notice received.
Based on the best chargeback sites failing to provide the said document could lead to a chargeback. Hence, always maintain your sales record and organize your credit card transactions well.
- You can lower customer-related chargebacks with a simple recognized DBA on their billing statement. The DBA (Doing Business As) should match your URL and business name.
- Provide your contact details on the billing statement of the customer to give them the ability to talk to you in case of any query or concern. Unsatisfied customers ask for chargeback and if you deal with their problem in the right way, the issue can be resolved.
- Make sure you mention your store policies clearly about refunds, returns, exchanges, credit, etc. Also, make sure you deposit the credit receipts with the acquirer as soon as possible. Failing to do so may result in a chargeback.
- Communication helps you in avoiding chargeback. Interact with customers about their orders. Reply to their queries instantly. Ask for signed delivery receipts so that you have proof that merchandise was delivered.
Apart from this, there are fraudulent activities and processing errors that prompt a customer to go for a chargeback. You can cautiously deal with these issues too.