Medium-Risk Business Chargeback Prevention Tips – Everybody knows that businesses either posses high-risk or low-risk. However, there is also another category that lies in between these two, which is called Medium-Risk Business. Now, the Medium Risk business can be hard to explain. Let’s try it with the help of an example. If your business deals in the card-not-present payments then you may not be a high-risk merchant but you will be one if you do not manage the chargebacks efficiently. This business can be stated as medium-risk business.
Recognize Your Business As Medium-Risk Business
There is no real scale to measure the risk in the business. But there are signs that can help you identify your business as low-risk, medium-risk or high-risk.
If you own a business then you need to keep the chargeback number below 1%. Otherwise, you can be subjected to fine. The same thing is applicable to the medium-size businesse where the merchant owning the medium-risk business needs to keep the chargeback under the threshold.
If the merchant crosses the monthly chargeback limit again and again,then not only the merchant will be subjected to a fine but also labeled as high-risk business owner.
Improve and Provide your Customer Service
When it comes to chargeback, the customer support can make a significant difference. If you have a good customer base then you can surely dodge some unwanted chargebacks. Here are some tips that a merchant can try to improve the customer service.
- Offer 24/7 support. In case you cannot afford 24/7 call support then provide the chat and email support.
- Try to respond to and resolve the customer’s issues as soon as possible.
- Get in touch with your customer to ask them about their experience in order to improve on the basis of their review.
A good customer service system can minimize the chances of friendly fraud. Furthermore, make sure you explain the terms and conditions properly to your customers before they make the purchase.
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Follow the Rules of the Card Network Properly
When a merchant applies for the merchant account, they are provided by the instructions that they need to follow all the time in their business. Moreover, the card network also has different methods to deal with the fraud transaction.
If a merchant doesn’t get along with these rules, he/she can face trouble. Here are some general medium-risk business chargeback prevention tips:
- Get the complete authorization from the bank or card network before continuing a credit card transaction.
- Provide on-time delivery of goods & services and inform the customer about the change in delivery details.
- Use the fraud-proof transaction tools in your business for various payments.
A merchant cannot eliminate the chargeback entirely but it can be minimized for your business using the medium-risk business chargeback prevention tips.
Chargeback management is very important for the business. If not maintained carefully, it can result in revenue damage. For that, you can hire a chargeback management company or create your own team to manage chargebacks.
If you have a small business then you can start by learning about the chargeback reason codes of the various card network such as Visa, MasterCard, Discover, and American Express.
Otherwise, you can get in touch with the chargeback management firm. For that, contact Chargeback Expertz by placing a call at the toll-free number +1(855) 465-4723. We offer Chargeback Management and Chargeback Representment to guide various merchant to avoid chargebacks. Call us at the toll-free number or reach us here.