Chargeback is a sad part of reality for the small and local business owner that accepts credit card. It comes with an excessive chargeback fees and additional expenses for tracking and investigating the fraud. Fortunately, there are some ways on how you can protect your business against the unfair chargebacks. This situation happens once the debit/credit card holder disputed a charge on their issuer. In case the issuer found the dispute valid, the account of the merchant will be debited for the charge that was cleared previously; this can ultimately affect your revenue. Here are some chargeback solutions that can help you prevent high chargeback ratios.
Utilize a Name That Consumers Can Recognize
The description on your business is basically the name that will appear on your customer’s monthly statement. The primary cause of the chargeback is that they do not recognize the name of their merchant. In case that your identity bears a different name other than your legal name or website, you can choose the name of your official site. You may also use the URL of your e-commerce site that the customers can easily recognize. The name appearing on customer’s statement should be clearly identifying you to the cardholder.
Be Accessible Every Time
There are indeed some customers that will instantly file a chargeback by the time that they do not recognize a certain charge on their online statement. However, there are also other customers who will research before filing for a dispute. You need to guarantee that there are different ways for the customers to reach you. You may include your e-mail address, social networking account, phone number and mailing address on your website contact page. Be available as much as possible for your customers. Providing 24/7 customer services is the best way to resolve the chargeback before it occurs.
Provide a Complete Detail
Most of the people who initiated an online purchase ended up being disappointed because it fell short on their expectation. The next thing they will probably do is to issue a chargeback since this is the product they expect. A great chargeback prevention practice is to provide a comprehensive detail about the product. You should include photo of the product in different perspective. Providing photo in different dimension can also help you in selling your product.
A Free Trial Should Be Free
If you are running A Trial Continuity Business than you should allow your customers to use the free trial for good time period for free. The time duration should be clearly mention on website, customer always aware about it and processed the order by accepting the Terms and Condition of the free trial. You can also contact your customer before engaging them into recurring transaction to know how they have ended up with the free trial. A good feedback always makes a good customer for company.
This is the best approach in preventing the excessive chargeback fees. You need to be aware that the chargeback was created as a form of security for the consumers and not for the merchants. In case they are not satisfied with the product, they will be determined to get their money back. Avoid the fees that come with the chargebacks by offering refund.
These are some practices that you can use on your chargeback prevention system. Managing chargeback is crucial to protect the revenue of the small and local business.
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