Best Chargeback Prevention Solutions

Charge-backs are preventable which is a big win for merchants or retailers. A full-proof charge-back management system should include disputing and decreasing. With such precautions to mitigate charge-backs, merchants or tradesmen can significantly decrease them. It is crucial that trades-persons such as retailers and merchants take the initiative to reduce future charge-backs and dispute illegitimately filed charge-backs which slip by unnoticed. Charge-backs for the better understanding of the concept, simply demands by card providers for retailers to make good on the loss by a fraudulent or illegitimate transaction. Similarly, in business, a charge-back is a policy that allocates the cost of an organisation’s central resources to the individuals which use them.

Financial Effects of Charge-backs

refundDeeming charge-backs as meager costs is a surety that they escalate the crisis. On average, tradesmen lose around 2 dollars per every fraud dollar. Essentially, this translates can to an estimated 100 dollars charge-back costing the trades-person 240 dollars. Merchants who do not take measures to ensure a reduction in charge-back cost suffers huge losses in the business’s long term growth. However, there are chargeback solutions both self-implemented that do not require professional assistance and professional solutions ;

Self-implemented solutions

It is advisable to use fraud detection tools with some highly recommended; card security codes, 3D secure and AVS. A trades-person can also improve customer service. To do this efficiently, they should, for example, replace IVR phone systems with all round time human support teams, display conspicuously their essential contact information and reply emails promptly while monitoring social media. Another self-implemented policy would be to be aware of and adhere to business best practices outline by card providers and cardholders.

Terms of service

Ideally, trades-persons could minimize the friction associated with recurring payments and this could be achieved by; making sure clients grasp the rates and changes, by clearly sharing the terms of service, fulfilling cancellation requests swiftly and completely, offering a no-strings-attached policy on the cancellation.

Shipping of Goods

One could also ensure that their clients know when goods are being shipped and when to expect delivery. Using delivery confirmation for huge purchases could also go a long way in ensuring charge-backs are greatly reduced. By also writing up detailed descriptions of the goods sold and employing easy to note billing descriptors, this greatly minimizes the risk of charge-backs.

Transaction Reviews

One could also perform manual reviews on transactions involving the sale of high-value products and services. This is easily achievable by perhaps recording IP addresses, emails of online clients while creating lists of both positive and negative transaction experience with these online clients.

Document Verification

For clients who do not present their cards during transactions, business owners could ask customers to provide the card’s verification codes on the actual credit card during the time of the transaction, and re-authorizing the card once more before shipping the purchases. On this note, business owners should ensure that both the billing addresses and shipping addresses on the card are similar. In the case that these two addresses are dissimilar, an internal policy guide may offer guidelines on when and how to ship to different addresses.