What are Chargebacks?
The chargebacks are disputed transactions, which take place between a merchant and a customer. Chargeback is the security, provided to consumers to protect them from unauthorized transactions. Chargeback management is a must to enhance the security and validation of a transaction else the merchant’s business would be at risk if the chargeback rate is too high.
However, there are consumers who abuse chargebacks heedlessly.
Reasons for Chargebacks:
Chargebacks can be very unpredictable. A merchant might think that he has got everything right but can suddenly receive a chargeback. That’s where chargeback management matters the most.
- Defective or Non-Delivered Goods: Sometimes, the goods are not delivered on time or remain undelivered or when delivered, they might be defective. In this situation, the customer may dispute the amount. Therefore, it is important to keep shipping receipts and track the goods that are shipped; this will help in the case of dispute on goods as well as in chargeback management.
- Invalid Account Number Or CVV: Make sure your system is configured to reject any expired or invalid credit cards. A chargeback can occur if the system is unable to locate a valid account number of the credit card that has been used.
- Unauthorized Transactions:There are frauds that a merchant must keep in mind, some people are making money by legitimate ways and many are bogus. Make sure to get as much information as you can from the customer. Specifically, ask for the customer’s address and the CVV2 of the credit card.
Email us anytime!
Email customer service 24/7
Call us anytime!
Reach customer care 24/7 at 855-465-4723
How To Manage Chargebacks And Prevent Them
Some of the preventive measures to manage chargebacks are:
- A Proper Understanding Of The Case: There should be a proper method to understand the case and strategize to eliminate it in the future.
- Merchant Error Elimination: The merchant error is the biggest culprit in this situation because, if a chargeback has occurred due to merchant’s error, then there is no way he is on a winning side of the case. Avoid silly mistakes and charging the same customer more than once for a single trade.
- Create An Authorization Request: Cancel any of the transaction that ends up stating ‘denied’ message. Always go by the rules that are set by the banks, it would be more than helpful to manage your chargebacks.
- Provide Informative Billing Descriptors: The informative billing description is the weapon you can use against an unauthorized chargeback. It is advised to use contact number, company name, email address and the trade details in it.
- Get Your Team Ready For Worst: The best training should be given to the chargeback management team, to handle the queries and disputes aggressively. There are lots of questions of a potential chargeback prone customer as they’re irate. Handling their queries responsibly may help you in chargeback prevention.
- Track And Use The Delivery To The Best Of Your Trade: Delivery of the goods is the most important deciding factor for a sale because neither the merchant nor the customer is physically present when the process occurs. Tracing the item is the responsibility of the merchant and charging the card too. If the customer didn’t receive the goods yet then process a refund. This is a generous way of showing to the customer that you are for a long run and not just for the money.
There are still many aspects where a merchant lacks and still cannot avoid a chargeback no matter how hard he tries. There should always be a specialist for certain cases.
Chargeback Expertz has a team of experts who can assist you in managing and reducing chargebacks. For enquiring or further assistance, contact us on: +1 855-465-4723 Or email@example.com