The law that protects customers whenever they purchase items using their credit cards is known as consumer law. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Yes, this is a huge advantage for customers, however, the same thing cannot be said for 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. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. 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, we will be discussing some tips that will help you protect your business against unfair chargebacks.
1. Your business must have an excellent customer service.
According to the chargeback company, if the merchant offers superlative customer service, he can easily reduce the number of chargebacks against him. Keep in mind that the foundation of your business is excellent customer service. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. If you have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. Teach your employees how to easily detect fraud before they process any purchase.
4. You need a secure payment system.
Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.