Skip to main content

Some Basics For Consideration To Avoid Potential Chargebacks


There are many things to consider to ensure business longevity, and merchants need a proactive approach to deal with chargebacks. If resources are not used to avoid chargebacks, then business tagged as blacklisted, and it can lead to a loss of 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 cardholders to provide CVV2, CID, and CVC2.
  • Refund as soon as possible and notify the cardholder in writing once issued, or when online membership is canceled.
  • Show clear descriptor, mentioning phone number so that cardholder can contact to discuss the dispute.
  • Provide email address on the website so that cardholders can contact you when there is a dispute situation. State the terms and condition, policies, and information that will help the client. Make sure services are clearly described and use an email notification to send details of the 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 the 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 at 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 is denied by the customer at the last moment. You can ask for another type of payment. For orders that are through an online site, asking security code will help you. Make sure to ask three digit code that is at the back of the card. In case there is American express then the code will be 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, the customer doesn’t check the item physically. You can provide information on the side so that customer knows what he or she is purchasing. These points may look small, but they can be a handy to fight against chargebacks.
Labels:

Comments

Post a Comment

Popular posts from this blog

The Emerging Facts of Online Payment Fraud Trends

World of payment is advancing technologically, it has increased possibilities for cardholders and merchants to connect globally. Cardholders can make payments while using mobile devices, and enjoy multiple payment methods at a time. Technological advancement has made easy to detect and protect data with the help of tools and strict policies. Online frauds have cost billions of dollars to companies, cutting their earning dramatically. Online and offline frauds are increasing rapidly, with each retailers losing at least $3 for every fraud they incur in the year 2014. This was $2.79 in 2013, especially mobile frauds which are driving these costs higher each year. How E-commerce Mitigate Fraud? It is a challenging task to entirely eliminate frauds, but necessary steps can be taken to ensure the network is secure. Security protocols, antiviruses, and firewalls can help protect against hacking attempts.Updating software problems ensure sensitive data of business is safe. ...
Post a Comment
Read more

Chargeback Prevention Alerts for High Risk Merchants

We have many many sources to detect fraud and possible chargebacks. Over years we have partnered with banks, financial institutions and Trusted Data Contributors who update your data across many sources to provide real time data chargeback prevention alerts. Merchants can now resolve or refund their unhappy customers and not have to deal with hefty fees due to fraud. For High Risk or Low Risk, business ALERT is an option to avoid chargeback , due to this option merchant can reduce the chargeback ratio which is good for merchant’s account. Excessive chargeback is not good for merchant’s MID because after. Too many chargebacks state that merchants mid is in danger and may be very near to close the Account. Acquirer won’t wait to cross the Account limit, MID will close as soon as chargeback flow is high. Alert will provide an option to control chargebacks and maintain chargeback ratio which is good for merchant’s account. Merchant has the various option after receiving an alert l...
Post a Comment
Read more

Essential Aspects of Payment Processor Can Help Avoid Chargebacks

Your payment processor can help avoid chargebacks using tools such as verified by Visa, CVV, and AVS for preventing frauds. In addition to these, there are measures they consider to reduce the number of chargebacks . Here is list of things that you can expect: There are many players in the overall process, the card brand, card owner, payment brand, processors, and the merchant. If a customer has a reasonable claim then card brand will send a temporary credit to the card owner and the process of chargeback starts. The funds are debited from merchant’s account during the process. There will be a notification via mail, fax, or online management system about the chargeback. If you submit documentation on time and challenge the chargeback successfully in time assigned to you, then funds will be returned. But if documentations are not submitted, then you won’t get funds. These were things that you can expect from banks that will handle your case, here is how your processor can hand...
Post a Comment
Read more