Tips for Preventing Chargebacks
Here are some tips we have compiled if you’re looking to prevent chargebacks:
- Use Proper Authorization Protocol: When processing card-not-present (CNP) transactions, use AVS and CVV2 to confirm the purchaser’s identity. A protocol like 3D Secure 2.0 can add an extra layer of security to online transactions and cut down on chargebacks.
- Make Sure the Billing Descriptor Is Clear: Many disputes happen because of confusion or miscommunication. Merchants can eradicate these types of chargebacks by using clear billing descriptors, which include the merchant name (DBA) and other details that identify your business. When the customer checks their card statement after making a purchase with you, there will be less confusion about when or with whom the purchase was made
- Clearly Present T&Cs and Policies: Having clearly articulated and posted terms & conditions, return policies, and refund policies can cut down on chargebacks.
- Optimize Customer Service: Merchants should have properly staffed customer service phone lines that minimize wait times. Allowing customers to contact by email can be beneficial as well—so long as emails are promptly (within 24 hours) returned. Also, consider implementing chat lines to quickly address customer issues.
- Work With a Reputable Payment Processor: Working with a trusted payment processor that offers consultative services regarding chargeback management can save merchants hundreds of thousands of dollars in the long run. Having a chargeback prevention plan—and a chargeback management strategy—is essential to guarding hard-earned profits from true and friendly fraud.