Contact Sales (855) 615-7481

Get FREE Quote

How to Reduce Credit Card Chargebacks

Credit card processing is one of the chief concerns of those merchants who are looking to consistently beat the competition. While many merchants are looking for ways to reduce their processing costs, there are others who manage merchant accounts who are looking to reduce their risks. Whenever a company decides to accept credit cards, that company inevitably must worry about chargebacks. A chargeback is when a customer purchases something from the merchant with a credit card, then attempts to cancel the charge through his credit card company. If the customer is successful, merchants can lose out on significant revenue, taking a major loss on what would have been an important sale. There are a few strategies that can help those in charge of merchant accounts with this difficult reality in credit card processing.

Signature on delivery protocols

Your business will find that one of the most common reasons given in chargebacks is that a customer did not receive the item he or she paid for. Typically, when a business ships an item, the delivery service will simply leave that item at the customer’s door. What happens, then, when someone steals the item? By requiring a signature on delivery, your business can ensure that the customer actually gets the item that was sent their way. This is an important safeguard which can shut down some of the fraud right in the beginning.

Clearly defined “Terms and Conditions”

Often, chargeback disputes will occur because customers will claim that there was some sort of deficiency in the product. However, this can be a challenge for merchants because of the nature of selling goods. What happens when a short, for instance, rips two weeks after a person has purchased it? If your store has policies on returns and things of that nature, then you must outline them in a clearly defined section. From there, you should make your customers agree to your terms and conditions as a precursor to their purchase. This way, if they attempt to file a dispute with their credit card company, you will be able to point that company to the fact that the customer clearly agreed to your terms before buying the item.

In addition to these steps, it is important to take precautions on who you sell to. If you notice repeated fraudulent activity from a consumer, then you can safely choose not to deal with them. Risk management is not a science, but by using some common sense, merchants can save out on potentially large losses.

GET FREE QUOTE TODAY AND START SAVING

Type Of Account

Articles

What Exactly is a Contactless Payment?

The modern credit card industry and credit card processing began in the 1950s, and the first credit cards...

How Smart Chips Will Make Electronic Transactions More Secure

For the typical business person who runs across fraudulent transactions involving credit cards, credit card processing with smart...

What To Do With All of Your Company’s Receipts

As the electronic age has started to take over more businesses, much of the information that used to...

© 2015 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA
American Express® may require separate approval.

*Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s). Further terms and conditions may apply.

**Certain restrictions may apply. Promotional offers brought to you by
CreditCardProcessing.com. Call (855) 615-7481 for details.