Tips On How To Prevent Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because fees and fines from banks will pile up and a lot of merchants will lose money. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.
According to the chargeback company, merchants can prevent this from happening by simply controlling the number of chargebacks they receive. Although there will always be customers that would take advantage of chargebacks just to gain free items, this doesn’t mean that merchants should just take this abuse.
In this article, allow me to share with you some tips that you may use as your guide when protecting your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Keep in mind that the foundation of your business is excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.
2. See to it that your description for your items are clear.
According to the chargeback company, one effective way to reduce the number of chargebacks we receive is to make sure we provide our customers with a good product description. If you provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. Be on the look out for fraud.
According to the chargeback company, you can easily avoid chargebacks by simply, being vigilant to fraudulent activities. Invest on the training of your employees to make sure they are capable of spotting any fraudulent transactions.
4. You should implement a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. See to it that your network systems are secured so that your customers are also protected.
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