Preventing Chargebacks and Refunds
Charge backs are a part of e-commerce, and while they are great for the consumer, they are a serious threat to you online business. Charge backs are used by credit card companies to refund the customers whose orders were processed incorrectly, victims of identity fraud, and who are unsatisfied with their product or services. Most of the charge backs that occur are because of customer dissatisfaction. It is important to note that the way the charge back system works is in favor of the customer and the process is oftentimes abused. In that case, it is your job to ensure that you have covered all your tracks and done everything by the book in order to protect your business should you encounter a charge back. There are steps you can take in order to decrease your risks.
Keep your marketing honest- Misleading marketing is sure to produce unhappy consumers. If you exaggerate on what you can supply you will most likely deal with charge backs. Be sure you can deliver on what you advertise.
Fraud- Unfortunately, online fraud is hard to recognize, but Integrated Card Services has programs to help you like the Verified by Visa and MasterCard® SecureCode™ programs.
Refund Policy- A good and generous refund policy can ensure a consumer’s trust and keep them from filing for a charge back.
Communication- A client will oftentimes try to contact you before issuing a charge back. This is the perfect time to diffuse the situation and handle it before the banks have to.
Record Keeping- Keep a copy of all receipts or communications made with the consumer. This will be vital information if you ever need to challenge a charge back.
Clear Terms of Service- Be very clear about the way your products are issued and provided. Also be clear on how to handle refunds or cancellation.
You can challenge a charge back. Read the charge back notice carefully and provide whatever is needed. If these rules are followed, charge backs are more likely to sway in your favor.
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