Protect Your Business And Do Something About 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. Although this benefits 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 from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of 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.
In this article, we will be discussing some tips that will help you protect your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, if the merchant offers superlative customer service, he can easily reduce the number of chargebacks against him. Keep in mind that the foundation of your business is excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or 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. Make sure that your description for your items are clear.
According to the chargeback company, one effective way to reduce the number of chargebacks we receive is to make sure we provide our customers with a good product description. If you provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. Be on the look out for fraud.
According to the chargeback company, most chargebacks are caused by fraudulent activities. Invest on the training of your employees to make sure they are capable of spotting any fraudulent transactions.
4. You should implement a secure payment system.
It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.