How To Protect Your Business Against Unfair Chargebacks
Consumer law exists so that the customers are protected whenever they decide to utilize their credit cards. If a fraudster steals their credit card information and the merchant refuses to refund their money, the owner can call his credit card company in order for him to get his money back. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. 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 a major problem for merchants considering the fact that they cannot apply for another account for the next five years.
According to the chargeback company, merchants can easily avoid this by simply reducing the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.
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. Your business must have an 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. 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. See to it that your description for your items are clear.
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 make sure that all of your products have a detailed description, you will definitely avoid 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. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.
4. Your business needs 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, the merchant will benefit a lot from implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.