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How to identify root causes and prevent chargebacks on your merchant account ?


Identify Root Causesto Prevent Chargebacks – Fighting and Preventing chargebacks has become a part of daily life for many merchants. Some merchants have accepted the fact while others are still figuring out the reason behind them. Chargebacks are chronic to a business and therefore requires close attention.

Now the only option a merchant has is to Identify the Root Causes to Prevent ChargebacksIdentify the Root Causes to Prevent Chargebacks. You need to keep on analyzing your business to find out the course of every chargeback, and then work on the cause to eliminate it. If you are, as a merchant, unable to do so you can hire an expert for the same. Chargeback Expertz offers expert services for the merchants with chargeback issues.

Identify Root Causes Of Chargebacks

In order to start with chargeback prevention, you need to identify the factors causing excessive chargebacks. Here are some common factors that can lead to a chargeback.

  • Delivery Issues – If you have a business that also offers delivery service for goods then you need to put extra attention to it. Any mistake causing a delay in the delivery or harming the goods can lead to a chargeback.
  • Customer Support – Make sure you offer good customer services. This can reduce the chance of friendly frauds. Also, with good and efficient customer services the trust of the customer also increases.
  • Terms and Conditions – If your customer is not well aware of the terms and conditions then make sure to inform your customer prior the payment is made.
  • Credit Card Related Issues – Finally and most importantly, never complete a transaction without proper authorization, and check whether the card is valid or not.
  • Follow Card Network Rules– Different Card networks have different sets of rules to manage and handle chargebacks. If a merchant is found ignorant of them then it can cause him a heavy loss.

These are some of the common issues that can lead to a chargeback. You can never eliminate chargeback from your business but you can always try to reduce them.

Negative Consequences Of Excessive Chargebacks

As we said, different card networks have different sets of rules to manage chargebacks. However, when it comes to excessive chargebacks most card networks have the same set of rules.

There is a Visa Chargeback Monitoring program for merchants with an excessive number of chargebacks, month after months. Every merchant is allowed 1% chargeback rate each month. On exceeding this limit, the merchant is put under the Visa Chargeback Monitoring Program.

If the merchant does not show any improvement then the merchant is charged with a heavy fine. And, if continues for several months, the merchant license can also get revoked.

However, if the business is a high-risk business then the card company can offer relaxation for 1% criteria.

This is why every merchant is asked to reduce and manage chargeback for the good of their business. Along with the tips to Identify Root Causes to Prevent Chargebacks, you should also know about the negative effects of excessive chargebacks.

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How To Identify Root Causes to Prevent Chargebacks?

There are number things that can cause chargeback and these can easily be reduced. Here are some methods that you can try to Identify Root Causes to Prevent Chargebacks:

Customer Experience – When you start analyzing your business, put your first thought on your customer’s experience. If for any reason your customers are not satisfied with your services then you need to mend it. This issue can lead to chargeback and many other issues in your business.

Product Marketing – Are you overselling your business? If yes, then you need to stop right away. Overselling can lead to disappointed customers because of the unrealistic expectations.

Use Secured Machines For Transaction – If you use credit card machines to take payment from credit cards then you need to make sure that these devices are secured.

Credit Card Authorization – All card networks have different reason codes to handle chargeback caused due to inappropriate authorization. If you are a merchant and do not have the authorization to make a payment then don’t do it.

Other than these, you can closely analyze your business to find the reasons leading to accessive chargebacks. You can also hire an expert to help you Identify Root Causes to Prevent Chargebacks.

Chargeback Representment – Chargeback Expertz

It is not advised to fight every chargeback. But if you ought to fight a chargeback then we recommend you to get an expert for that. Also, Chargeback Representation should be correctly put together, otherwise can affect badly.

For such services, you can contact Chargeback Expertz. We offer Chargeback Management and Representment services for all kinds of businesses. Just call at the toll free number +1 855-465-4723 and get an expert opinion.

Identify Root Causes to Prevent Chargebacks

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Chargeback Prevention