Home > Business > 6 Great Chargeback Management Strategies Every Merchant Should Adopt

6 Great Chargeback Management Strategies Every Merchant Should Adopt

29 Views
pexels photo 3756345

Chargebacks are a discouraging and costly aspect of doing business. Still, for any enterprise, having some displeased customers who want their money returned is unavoidable. There are tools and strategies merchants can use to bring down the number of chargeback disputes and friendly frauds and provide their clients with a much smoother and effortless payment experience.

As Internet technologies are getting more advanced, so are the solutions designed to protect your merchant payments from wrongful disputes. On top of that, there are simple but efficient tips you can instrumentalize to make your customers happy and keep them from asking for a chargeback.

6 Effective Tips to Protect Your Small Business from Chargeback Disputes

First things first, let us see how chargebacks can give a powerful blow to your company’s financial standing and reputation. A chargeback ratio of more than 1% can have the following repercussions:

  • Revenue loss and customer outflow;
  • A low credit rating can slow down the growth of your company;
  • Damaged business reputation leads to increased processing costs;
  • Possible merchant account termination.

 Not to worry, though! As promised, here are things a merchant can do to avoid all that trouble:

  • Design a well-reasoned and unambiguous return policy

Customers need to understand their options clearly before conducting a payment to your business. Make sure your return policy is well-defined and exhaustive. Keep it in your physical store and on the site where everyone can easily access this information.

  • Provide customers with detailed contact information

Customers are less likely to start a chargeback dispute if they have other, simpler ways to contact your business. When you offer your clients a chance to reach out to you via email or phone to voice their concerns directly, you can often come to an agreement that will not involve a chargeback.

  • Describe your goods and services on the website extensively and explicitly

Many chargeback disputes are triggered by customers’ not getting exactly what they think they were promised. Misleading descriptions that do not match the product’s real parameters are the number one reason for customer dissatisfaction. One way to avoid this is to provide a clear and accurate statement of offered products or services on your website.

  • Obtain the customer’s signature for transactions where a card is present

Having your customers’ signatures on paper receipts is a quick way to prove the purchase was rightful and intentional. When the customer signs a document, they are usually a lot more committed and are less likely to request a chargeback.

  • Use CVV and zip codes for card-not-present transactions

To make their card-not-present transactions more secure, merchants can utilize address verification services, such as zip codes and CVV codes. These small pieces of data will solidify your charges and give you a little peace of mind.

  • Keep your billing descriptor accurate and clear

If customers can quickly recognize your company on their credit card bill, they are less likely to panic and file for a chargeback. Make your payment descriptor as clear and identifiable as possible.

Effective Chargeback Protection Tools and Tips that Will Help Your Business Thrive

As frustrating as they are, chargebacks are an integral part of day-to-day business operations. While there is no way to avoid them completely, minimizing their number with the above tips and recommendations will help your business prosper and keep your customers happy.

What is your method of handling such disputes? Which solutions or strategies do you use to reduce the number of chargebacks? Let us know what you think in the comments below, and share this post with others!

TAGS , , , , , ,
Syandita Malakar Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
Business Module Hub