Tips On How To Prevent Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. This is a major problem for merchants considering the fact that they cannot apply for another account for the next five years.
According to the chargeback company, merchants can easily avoid this by simply reducing the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.
In this article, we will be discussing some tips that will help you protect your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. You have to consider having low-cost communication options for your customers like a landline number or even a web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.
2. Make sure that your description for your items are clear.
According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. If you have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. You have to be vigilant when it comes to fraud.
According to the chargeback company, most chargebacks are caused by fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.
4. Your business needs a secure payment system.
It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. See to it that your network systems are secured so that your customers are also protected.
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