- September 8, 2020
- Posted by: iPay Editor
- Categories: B2B Payment Processing, best high risk merchant account provider, best high risk merchant services, Finance & accounting, high risk merchant account provider, high risk merchant account solutions, High Risk Merchant Accounts, high risk merchant payment processor, high risk merchants uk, high risk payment gateway uk, High Ticket Merchant Account, High Volume Merchant Accounts, International, International Bank Accounts
The entire world is impacted by COVID-19 and has disrupted operations. New policies and procedures have been imposed by merchants, banks and customers. How about the payments industry? In the world of payment processing due to the pandemic merchants are hard hit by excessive chargebacks. It is common for merchants in the travel and hospitality industries.
Mastercard and Visa have updated their policies to ensure everyone is treated fairly during this process. In this blog, let’s understand the increased risk of chargeback during the pandemic and how to mitigate the risk of chargeback.
Is There A Risk Of Chargeback Due to COVID-19 Pandemic
COVID-19 has shaken the entire world overnight. Businesses were shut overnight due to lockdown. Only essential services were allowed to operate. Due to this several businesses have been struggling with supply shortage, cancellations and staff shortages. The hard-hit industry such as Travel has been impacted by overwhelmed calls from customers whose flights and travel plans were cancelled. Since these customers were not able to reach the customer care on time due to shortage of staff have filed for a chargeback.
The retail industry has been impacted due to supply shortages on literally everything due to panic buyers. People started buying the entire shelf of things when the lockdown was imposed thinking the situation will go worse. Many businesses had short of staff due to social distancing. Which resulted in shipping delays.
MasterCard And Visa Changed Guidelines
MasterCard and Visa changed the guidelines which are related to chargeback even though it’s not the same but it’s similar. Due to COVID-19 customers were unable to file chargeback due to several reasons such as:
- Even though the service was available the cardholder declined the service (eg. Wellness, beauty services etc.
- Due to travel restrictions, the cardholder was unable to provide services
- No show charges if the cardholder did not cancel scheduled services
- Missed flight resulted in missing non-refundable service
These are just a few examples there are a lot and the list never ends.
How Merchants Can Mitigate Chargeback
As a merchant, you can follow few things to mitigate chargebacks. Communication is the key. During the pandemic, panicked customers end up contacting the customer care line and are unable to reach the line due to shortage of staff. They think that their money is gone and impatient apply for a chargeback. Let’s look at few tips on how merchants can cope up with customer complaints during dreaded times:
It is advisable to provide your customers with some additional contact information. For example, if you have a customer care number for your business for enquiries add a chat box or provide an email address where the customer can address their concerns.
When the customer calls the customer care number to provide an option to opt for a callback. So that customer won’t get frustrated staying on long hold.
If the call volume is really high due to service or product cancellations announces that on the website or via email and explain the current situation and what the customer can expect when it comes to refunds.
If you already know that there will be shipping delay mention that at the time of checkout while purchasing the product so the customer is well informed before the purchase.
We at iPayTotal understand that chargebacks can be frustrating. And we have real-time chargeback update for our customers. iPayTotal has worked with thousands of high-risk merchants and understand the high-risk industry-unique requirements and provide tailored high-risk payment processing solutions. Contact iPayTotal today. Call us at +44 800 776 5988 or email at email@example.com