Protecting your business from chargebacks

The most critical thing merchant has to be afraid of while selling products and services are chargebacks. If you get the chargebacks, it may lead to decrease in revenues and may also hamper the credibility of the business. To operate profitably in the ecommerce industry, you should have proper chargeback defense policies and fraud management policies. You should always ensure that chargeback to sales as well as fraud to sales ratio is always below 2%.

In the layman language, chargebacks are disputed transactions. Chargebacks were created by the law to protect customers from the unauthorized transactions. The consumers try to have a word with the merchant once or twice but if their issues are not solved they simply raise their concerns with their issuing bank.
However, some customers use the chargebacks thoughtlessly and that can cause losses to your business in online ecommerce industry. There are few tips which can reduce the chargebacks of your business.

1.Descriptor and/or DBA Name: DBA name i.e. Doing Business As. It is the name that appears on the bank statements of the customer. Mostly customers raise chargebacks when they do not recognize the name appearing on the payment slips or bank statements. You should make sure if DBA name is different from your business name and you should also make that thing understood to the customer. It is up to you to ensure the card charges are understood by the customers.

2. Contact Details: You should provide proper contact details to your customers, if customers have any queries and if those queries are not solved they will surely go to the banks and file dispute against your business. Customer service information of the business (Phone number & email address) should be mentioned on website clearly for the customers. You can also add your customer service phone number on your Descriptor and/or DBA name that will show on customer’s bank statement. Customers can contact you immediately if they’ve noticed unrecognized transaction on their statement.

3. Fraud Management: You should have proper fraud management team. The team should monitor all the transactions that take place on your website and as soon as you come to know about any fraud transaction, check the authenticity of the transaction. If it is complete fraud transaction then refund it immediately. The payment gateway providers and banks also monitor transactions and forward the same. It is up to you to make sure the transaction has not taken place through stolen card. If you’ve noticed any fraud transaction taking place on your website, the fraud management team either contacts the customer to verify the sale or refund the transaction to avoid any further issues.

4. Products and services up to the mark: Many times chargebacks are not raised because of fraud transactions but because the quality of the products and services are not up to the mark or substandard or below customers’ expectations. On your website clearly explain the product with images and proper details. You should also have refund policy. In case if the customers ask for the refund after the time mentioned in the policies you can clearly show your refund policies to them.

5. Accurate records and customer service: You should maintain proper call records, email conversations or any other conversations you had with customer somewhere. Maintain a proper track record of everything. Keep proper proof of delivery with you. You should also have a customer service team which should take feedback calls from the customers and in case of any issues they can be solved on priority basis.

Chargebacks can lead to high losses especially when your business is high risk business. To make sure you do not get caught in a trap of online fraudsters, take proper actions in the beginning. It is tough for the merchant to win the chargeback case itself however we as chargeback Expertz have proper chargeback defense, chargeback management and fraud management tools. We try our best that the chargeback is properly responded. Contact us today!