If you’re a merchant managing credit card transactions on a daily basis, then you know all too well the frustration that comes with the dreaded ‘chargeback’. For you, it isn’t simply a refund that ends with a ‘breaking-even’ scenario—indeed, for your low-risk or high-risk merchant industry, the frustration does not end there.
A chargeback, for the customer, is simple: they receive their money back; for you, the merchant…a different story: you will have lost a sale, will have to pay the levy/fee to your acquiring bank, and may even reach your chargeback threshold—and this could lead to your company going into the red; that is, going into a higher-risk bracket, which comes with more charges.
Furthermore, it may even end your business from operating with traditional banks, in which case you may have to opt for a specialised card processing alternative.
So, how do you end these chargebacks, or at least reduce them?
Here are five ways you can reduce your merchant chargebacks right now: —
- Your merchant business name
Bizarre names, codes or numbers can confuse a customer. When your customer makes a purchase on your website, for example, they intend to see the name of your business on their credit card statement. If it’s a group of numbers or obscure wording, your customer may query this.
Often, customers forget about a particular charge; and often they do not trust the wording on their statement if it is not “ABC Technologies” or something for which they are aware.
So be sure to list your business name (credentials) as your customers know it. This will help reduce queries and chargebacks.
2.Timeous delivery of goods/services
If customers receive a bank charge on their credit card without them having the physical item in their hands—or if they have not received a confirmation receipt of their subscription, for example—they will likely dispute the transaction. In most cases, they go directly to their bank to dispute it. This leaves no room for your merchant company to manage it properly.
Ensure that you send goods quickly so that your customers do not see a transaction and not have the goods in front of them. This will greatly prevent chargebacks.
3. Customer service excellence
Customers often make regretful decisions or what is commonly referred to as ‘buyer’s remorse’. They may use your service or your goods and, though they are not entirely dissatisfied with the product or service, they may simply not desire to have it anymore. Although this is unfair, customers still dispute charges even with a conscience. This is known as ‘friendly fraud’.
There is a way to combat the chargeback here. It’s about having a robust, ready customer services team on hand. For your customers to know that they have an ‘after-sales’ team ready to assist them will encourage them to contact your merchant business.
Moreover, your well-trained consultants will help the customers find ways again to fall in love with the product or service the way they had in the beginning. — This will prevent chargebacks at a large scale.
In-store merchants (or face-to-face customers) have the opportunity to prevent fraudulent transactions by utilising chip technology. However, for those who sell products online, which is becoming more and more the option for all businesses to increase revenue, there needs to be a system in place that can aid in detecting and preventing suspicious activity.
One of the few ways you can prevent fraud is by using what Visa introduced a while ago; that is, 3D protection. This is an online verification system that helps your customers feel safe when shopping on your site. This 3D secure processing authenticates and validates payments securely.
This will prevent chargebacks because your customers will feel safer using your merchant account online.
Don’t lie or overpromise just to sell–it will bite you back, hard. This is one of the main reasons why chargebacks occur, and for legitimate reasons. When merchants advertise their products, they must be careful to stipulate what the product or service will do. By advertising that this cream will remove your wrinkles instantly or that this pill will take away your fat cells are bald-faced lies. Chargebacks will come in the thousands.
Prevent these sorts of chargebacks by stating clearly what the customer would expect from using your products. Honesty, as the adage goes, is really the best policy if you desire to have great customer reviews, returning customers, increased revenue and of course, fewer chargebacks.
These five ways to reduce chargebacks, mentioned above, are easy enough to start minimising your chargebacks immediately.
However, not all merchants will benefit immensely from these methods. Some merchants, especially those in the high-risk industry such as travel, casino, adult entertainment and so on, would find it worthwhile to use a specialist credit card payments processing company whose chief aim is to provide service to high-risk merchants and dramatically minimise chargebacks as well as offer other services to enable merchants like your business to thrive in an environment that is often precarious.
iPayTotal is the premier professional credit card processing team, ready 24/7 to help your merchant business go to the next level without worrying about the bank. This team at iPayTotal takes it upon itself to manage your account with the efficacy and professionalism you deserve so that you can continue to do work as usual, without the stress and the hassle of chargebacks.
Speak to iPayTotal for the best way to move your merchant company forward, and to help you find a payment gateway that is absolutely suitable to both you and your customer. There is more advice available on how to end chargebacks as well as other technical solutions.
It’s time to pay attention to your business and let the problematic billing systems be handled by professionals while you manage your business the way you know best.