How To Protect Your Business Against Unfair Chargebacks
The law that protects customers whenever they purchase items using their credit cards is known as consumer law. 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. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Despite the fact that chargebacks are legal and every customer has the right to request for one when necessary, too much chargebacks against a merchant can damage his business big time. 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 close the merchant’s account which will eventually shut down his business. This is a huge problem for merchants because they won’t be allowed to 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.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Remember that excellent customer service should be the foundation of your business. You have to consider having low-cost communication options for your customers like a landline number or even a web chat. Investing on the training of your your customer service team so that they can easily handle difficult customers will also play to your advantage.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. You have to be vigilant when it comes to fraud.
According to the chargeback company, most chargebacks are caused by fraudulent activities. 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, we can do this by simply implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.