Online Merchant

Minimize Chargeback Tips

Posted on 13. Feb, 2009 by admin in Merchant Article

Accepting credit cards is surely beneficial, but you also have to face from time to time credit card dispute. A dispute is a common flow. However, there are different levels of protection provided to retailers who accept credit cards as a payment option

Technology has given us a secure online environment that encrypts credit card details and personal information of the cardholder as it is transmitted over the Internet. Many methods of verification of the card are also available to ensure that the person presenting the card is in hand and, hopefully, they are the owner of the credit card account

If a cardholder decides to dispute a transaction they are on their credit card because they say the card has been stolen or someone used the card without their permission, while the retailer is responsible to recover that money. The holder of credit card will be refunded and the retailer is out the money from this sale

If your company is not the quality of customer service, a customer does not receive items ordered in May or they could receive defective. In such cases, they dispute the purchase and you have to pay this money when the bank submits the charge back to your business bank account

To minimize the number of charge backs, make sure your shopping cart or website takes steps to verify the identity of the purchaser. There are several ways to try to prevent fraudulent activities online, including verification of address, security code and control to Internet transactions

You can also reduce the number of times over high levels of customer service. Make sure that each customer receives the order of items they have, and use of processes to ensure that only quality items are being shipped. Take your time and check if all items are shipped in packages, so to minimize the damage that might occur during transportation orders

Regarding transactions in person, you can reduce the burden back by requiring that customers sign their receipt of your cashiers and actually take the time to compare the signature with the signature on the back of the card. If the signatures match, the customer will not be able to refer a dispute resulting in a charge back at a later date, so it is worth thirty seconds or more, in order to compare the signatures. If the cashier does not believe the signing of the match, he or she may require that the client uses a different method of payment.