There are many things to consider to ensure business longevity, and merchants need proactive approach to deal with chargebacks. If resources are not used to avoid chargebacks, then business tagged as blacklisted, and it can lead to loss in revenue. Here are some steps that merchants need to consider to avoid chargebacks:
- Conduct AVS check and process orders that are valid
- Obtain evidence of shipping receipts and documentation
- Consider using MasterCard’s security code or verified by visa. This will provide extra protection and solidify your position when representing.
- Require card holders to provide CVV2, CID, and CVC2.
- Refund as soon as possible and notify to the cardholder in writing once issued, or when online membership is cancelled.
- Show clear descriptor, mentioning phone number so that cardholder can contact to discuss dispute.
- Provide email address on website so that cardholders can contact you when there is a dispute situation. State the terms and condition, polices, and information that will help client. Make sure services are clearly described and use an email notification to send details of sale. Indicate when the card is charged.
- Make sure to obtain written or E-signature from cardholder giving you permission to charge on monthly recurring payment. If you are offering subscriptions then make it easy to cancel without asking questions. Make these things clear in your policy.
- Authorization for deposit is important, and they must not exceed the amount that has been authorized by cardholder. There should be positive authorization, and it is better not to use voice authorization.
- If authorization was more than 7 days old, then you should reauthorize it because cardholder may have changed mind in that time. While it can still be called as valid, but asking one more can work in your favor.
- Compare signature on card with receipt, make sure they match
- Don’t key card number, swipe whenever possible
- Never finish a transaction if denied by customer at the last moment. You can ask for another type of payment. For orders that are through online site, asking security code will help you. Make sure to ask three digit code that is at the back of card. In case there is American express then code will be of 4 digits.
Your priority should be to advertise clear and mention services along with terms and policies. If you don’t give much information, it can lead to chargebacks, so mention products and their quality clearly. If you are selling something online or by mail, in this case customer don’t check the item physically. You can provide information at the side so that customer know what he or she is purchasing. These points may look small, but they can be a handy to fight against chargebacks.
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