Prevent Recurring Payment Chargebacks – A Recurring Payment is basically a bill charged on monthly basis to the customer. This kind of billing causes most number of chargebacks. And the business with subscription basis services is often considered as a high-risk business.
For more details related to the recurring payment chargeback, you can contact Chargeback Expertz at the toll-free number +1(855) 465-4723. Furthermore, you can get assistance for Chargeback Management and Representment.
What Causes Recurring Payment Chargebacks?
The Recurring Payment Chargeback can be caused by merchant error, criminal fraud, or friendly fraud. In order to prevent Recurring Payment Chargebacks, you need to know about the causes of such chargebacks.
- The customer caused the friendly fraud by filing the chargeback instead of canceling the subscription.
- The customer canceled the subscription but the merchant deducts the amount.
- No message was received by the customer regarding the recurring payment and customer filed the chargeback.
- The transaction was not authorized by the bank and merchant completed the transaction anyways.
- Subscription amount was increased without prior notification to the customer.
The merchant can avoid the recurring chargeback by being a little alert regarding the issues. This means with proper management, the recurring chargeback can be minimized.
Tips to Prevent Recurring Payment Chargebacks
- Before charging the customer for a subscription every month, you must explain to the customer. Also, make sure you describe the terms and conditions properly before the customer buys your product or service.
- When the customer adds a card for the monthly subscription, make sure you get the proper authentication. This includes AVS information, the card security code, and the expiration date with the authorization request. The expiration date of the card is important to take into account.
- If you are going to charge additional fees and other charges then do mention every charge to the customer before the payment.
- When a subscription gets canceled, inform the customer and remove the subscription immediately to avoid any chargeback.
- Give proper cancellation, termination request portal for the subscription cancellation.
- Share your details, including website, store, shipping information, and terms to the customer. Give no chance to the customer to file a chargeback.
Stick to Best Business Practices
Using the best and genuine business practice you can minimize and even Prevent Recurring Payment Chargebacks.
- Firstly, use fraud security tools like AVS, card security code, and 3D Secure.
- Disclose all additional charges, termination charges, and late payment charges to the customer.
- Send your customer a detailed message of the purchase every month before the recurring charges.
- Moreover, train your employees to maintain a healthy relationship with the customers.
- Allow your customer to cancel the subscription any time of the month.
For more tips, contact the Chargeback Expertz at the toll-free number +1(855) 465-4723 and talk to an expert. You can contact us using the Skype as well.
Tackle Representment with Chargeback Expertz
You can prevent Recurring Payment Chargebacks with these strategies and minimize them. But you should also be prepared for the Representment because nobody can predict the exact chargeback that a merchant is going to face.
To handle Chargeback Representment efficiently, you need an expert to guide you. Also, with Chargeback Expertz, you will get chargeback alerts that will help you reduce the number of chargebacks. You must avoid crossing the chargeback threshold that can cause a penalty.
Managing all these details and businesses can be too much for a merchant. But don’t get overwhelmed, we can provide you with all the services and solutions for chargebacks. For 24/7 supports contact the Chargeback Expertz at the toll-free number +1 855-465-4723,