If you own an ecommerce business, you’ve probably faced chargebacks. Chargebacks are like a virus to your business. Once a chargeback occurs, it is only a matter of time before another takes its place. This is because fraudsters quickly pass on information about the security weaknesses in merchant infrastructure. For this reason, once a merchant encounters a chargeback they must analyze and resolve them quickly. So how does a business owner protect from chargebacks?
Generally, the buyer claims one of three things when a chargeback occurs: (a) the buyer didn’t receive the items ordered; (b) the buyer didn’t authorize the purchase of the items; (c) or the items received weren’t as described. Once the chargeback process begins, it is up to the merchant to prove fraud. If a chargeback occurs, most credit card processors will hold the money until the dispute is resolved. The processor will then turn to the merchant to prove that the customer is making a false statement. Luckily there are some actions merchants can take to successfully dispute fraud.
Not Getting the Product
To fight charges of not receiving the product, merchants must establish shipping procedures for all mailed products. Written procedures will include how items are packaged, what type of protection is used, and a timeframe for delivery confirmation.
Accusations of Fraud
Merchants must invest in a good platform or analytics program that will capture the IP address, time, dates, locations and other pertinent information on the website. Before sending merchandise, merchants must verify that the location of the buyer matches the info on the consumer’s credit card and shipping address.
Receiving the Wrong Product
To fight this charge, some merchants have video or still images of all products shipped. This is a valid strategy for a business with a physical shipping department. If a merchant doesn’t have a shipping department, photos should be taken of all high dollar orders.
The eMerchantBroker Chargeback Suite
As online fraud grows more prevalent, merchants must invest in merchant chargeback prevention. eMerchantBroker provides fast and effective merchant solutions that will monitor suspicious activity, notify merchants when chargebacks occur, and provide tools to track suspicious activity and dispute chargebacks. EMB chargeback suite reduces the amount of chargebacks by 15-30% per year.