How To Protect Your Business Against Unfair Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. 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 major problem for merchants considering the fact that they cannot apply for another account for the next five years.
According to the chargeback company, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Yes, it is true that there will always be some customers who would take advantage of chargebacks to gain goods for free, however, merchants can still do something to defend their business against 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, merchants can easily prevent chargebacks by simply offering superlative customer service. Don’t forget that the foundation of your business is none other than 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. 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 provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
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.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.