If you accept credit cards, preventing chargebacks can be a challenge. Chargebacks happen when your customers dispute a credit card transaction. 58% of the time, merchants aren’t even notified that customers have demanded their money back. This means that merchants are unable to investigate or even challenge fraudulent chargebacks until it is too late. But there are some policies and processes that merchants can enact to keep profit sucking chargebacks to a minimum.
Recognize the Risks
Some merchants don’t believe that chargebacks are an issue, but too many can be extremely damaging to merchant profits and reputations. In a time of e-commerce and card-not-present transactions, chargebacks have the potential to get out of control. However, exercising preventative measures and monitoring transactions daily will keep chargebacks to a minimum.
Invest in Monitoring Systems
The best defense is a good offense. In order to prevent chargebacks, merchants must invest in infrastructure that monitors suspicious transactions. There are software programs that track suspicious activity. If a customer engages in suspicious activity, systems will notify merchants.
Learn to Investigate Chargebacks
Business owners have the power to conduct their own investigations. When chargebacks occur, begin with the reason code and review transaction data. Most of the time, merchants can find the proof that they need to fight chargebacks with a simple search. People who commit fraud often leave behind clues like mismatching billing addresses or the ordering and returning of the same item. Train and assign a few people at your company to spot any of these clues.
Work With Your Processor
Use your credit card processor to access resources that reduce your risk of chargebacks.
Experienced online payment processors like EMB, have complex and effective programs that prevent and detect suspicious activity. Chargeback Shield is a specialty chargeback suite from EMB that tracks, monitors, and alerts companies whenever chargebacks are filed. Merchants now have the opportunity to prevent and refute chargebacks in a fast and efficient way.
eMerchantBroker is a credit card chargeback protection provider. We have fast and effective merchant solutions that have made them a leader in the chargeback prevention industry. Their chargeback suites have been known to reduce the amount of chargebacks by 15-30% per year.