E-Commerce Merchant Account Services
25 Jul

By ipaytotal

Category: Chargebacks, E-Commerce, Fraud Prevention, High Risk Merchant Accounts

Excessively Strict Return Policy Can Lead To Lost E-Commerce Merchant Account Services Comments Off

Excessively Strict Return Policy Can Lead To Lost E-Commerce Merchant Account Services

Merchant Account Services For E-Commerce

  IpayTotal – Merchant Account Services For E-Commerce Industries

In this world of technological revolution the e-commerce business is on its brightest star, According to the information given on retail e-commerce sales in worldwide, in 2017 e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are projected to grow to 4.88 trillion US dollars in 2021 but this is not the position of every e-commerce industry. Some small even big e-commerce industry also faces so many problems and they also not consistently making money. Developing an e-commerce business is not an easy task, they face so many challenges. There are so many competitors and you alone have to take part in website maintenance and customer satisfaction. Return policies in e-commerce business also a part of customer satisfaction due to which the e-commerce merchant account services lead to a loss.


Only the 8% return by the customers is equal to the $260 billion worth for the merchandise. Everyone isn’t able to see the money ( and time) loss from accepting return and get it back in the inventory and that $260 billion worth is excluded from that loss. To reduce this burden, a merchant start taking strict returns policies and the customer only wants their money back so they use some either way to get their money back but they don’t even have any idea about the loss faced by the merchant. So to avoid these losses the merchants have to be clear about their return policies in advance. In the Clothing Industry most of the time we find that there is some difference in the size of different brands and by that the customer chooses their size and then return the clothes. This return practices especially happen with cloth retailer and women also plays a very important role in it. For example, a woman chooses a dress and then after some time she also looks for another dress and then she decided to order both the dresses and after trying both she kept the best one and return the next one but what about the loss faced by the merchant. This is not only the loss of money for them there is also so many other things which creates a problem for the merchant.

Be as clear as possible

Now if you made your return policies strict then due to some reason it will turn into the chargeback frauds. The strict return back policies are not praised by the customers. Nobody wants to deal with the chargeback frauds so, that’s really very important to clear with the return policies. Clear return policies are the key to fewer conflicts and also save you from the future chargeback fraud.


A strict return policy not only leads to loss of e-commerce merchant services but also damage your brand image and reputation.

  • Make your return policy easy to understand- Whether the customer is reading your return policies before purchasing your service or after purchasing it’s your responsibility to make your return policies easy to understand otherwise customer has so many options to obtain and as you know there are so many competitors.
  • Provide multichannel return-If you have an offline presence so it’s a good decision to allow customers to return to the store because it will avoid returns also. Sometimes lack of education also lead the customers to return the item back but after visiting the store it should be possible to avoid the need of return. Customers always appreciate the convenient and flexible return channels.
  • Make your return policy easy to find- Where the customer isn’t 100% sure about the purchase the easily find the return policy in website convince people to make the purchase. Always your return policy easy to find on your website. Use a prominent link in your website for return policy.
  • Don’t charge the customer for return-charging for returns is one for sure way to annoy customers and also deter them for future purchases. Every customer tries to looking for retailers who do not do this.
  • Clear return policy in packaging-If you hide the return details then the customer gets annoyed and also not think about to shop with you again in future. To avoid this add return policy in packaging. Provide your customer with the best experience ever.
  • User review is also helpful-If the customers experience with you is good then also the feedback from the customer for you is also good so and these reviews also help your industry to make a good customer base.

Fraudulent chargebacks

Today fraudulent chargebacks represent the customer disputes with merchants, but just because the reason chargeback is coded with a fraud or no authorization reason code does not mean true fraud has actually taken place. There are some ways by which you can protect yourself from these types of frauds:

  • Verifying customer IP address
  • Investigating CVV failure
  • Using some analysis features

There is something about 71% of loses come from chargeback fraud and the remaining 29% from true fraud accounts. Fortunately, by submitting a response to chargebacks coded as fraud, you will get the transaction value back.

If you are looking for a reliable merchant account provider, you are in the right place, as IPAYTOTAL provides the best solutions for e-commerce businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.

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