E-Commerce Merchants Can Fight Chargebacks

Chargebacks are bad news for everyone. From the customer having to request their funds, to the business having to cut the funds, to even the merchant account having to deal with the fallout, chargebacks are damaging. While few get through their business lives without a chargeback, the majority of retailers – and e-commerce – will face a chargeback sooner or later. While we all hope for the best, many times chargebacks can come at the worst time for your business, and it can lead to a horrific outcome if you are not prepared.

Up until not long ago, the online business world was not catered to as much as brick and mortar businesses. Thankfully, now that online sales are surpassing some brick and mortar stores, the processing industry is listening. While the online world gets a bad rep for hackings and poor communication, these things are happening more and more with brick and mortar stores. Chargebacks happen everywhere, and since processors are now catering to e-commerce, there is a good chance that you can obtain merchant chargeback protection. This will not stop all chargebacks, or all of their fees, but it can help lessen the blow to your business.

While merchant chargeback protection is something that every merchant should invest in, there are things that merchants can do to help minimize the chances of having a chargeback. First off, be sure to use a fraud prevention tool, such as Verified by Visa or an address verification service. With the latter, you have a better chance of catching fraudsters who use their home address or PO Box, since it will not match up with the information of the card owner.

Another good rule of thumb is to make sure that you blacklist those who are trying to cause trouble. Did you know that you could block a person, an IP address, or even an entire country from your online store? It’s true, and many merchants have resorted to these measures to keep the troublemakers away. While it may seem harsh, you have a right to protect your business from threats that can wreak havoc on your company and customers. Before making any changes, be sure to consult with your merchant account processor, to alert them of the changes you intend to make.

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