Chargebacks can be described as disputes. Various issues can cause consumers to dispute the transaction. So a chargeback may be caused by a damaged product, or the customer may not have ordered the right thing based on the description of the product. Stolen cards and fraud can be another reason for a chargeback dispute. In such cases, customers contact their bank and raise a dispute.
How Can You Protect Your Online Business from Chargebacks?
It is important for merchants to reduce chargebacks as much as possible. Below you can find tips that can help you protect your business.
- Provide a proper description of your product or service. Clearly describe your product, its dimensions if required. Provide good pictures from different angles.
- Choose a good delivery service not to end up with late delivery or damaged products.
- Do your best to resolve disputes as soon as possible. This will help you build customer loyalty. Also, by solving the problem quickly and effectively, you can save enough money. Going through a chargeback arbitration won’t be cheap.
- Have a clearly explained dispute settlement process on your website. For quick resolution, make sure to work with an experienced team of mediators.
- Keep the records of your transactions, delivery recipes, and shipping documentation.
- Make sure to have added levels of security.
It’s highly important for merchants to turn to a reputable processor like EMB for safe and secure payment processing. eMerchantbroker.com is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. EMB is rated “A” by Card Payment Options and is one of Inc 500’s Fastest Growing Companies of 2016.
Card Not Present sales are expected to grow by over 17% during the 2016 holiday shopping season. Merchants and issuing banks are going to face a large amount of cardholder disputes and chargebacks as a result of friendly fraud or increased levels of true fraud that are a byproduct of the busiest selling season of the year. According to Aite Group, industry research firm, 60-70% of chargebacks are caused by friendly fraud.