How Chargebacks Can Affect Your Online Business

Dec 28, 2016

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.

  1. Provide a proper description of your product or service. Clearly describe your product, its dimensions if required. Provide good pictures from different angles.
  1. Choose a good delivery service not to end up with late delivery or damaged products.
  1. 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.
  1. Have a clearly explained dispute settlement process on your website. For quick resolution, make sure to work with an experienced team of mediators.
  1. Keep the records of your transactions, delivery recipes, and shipping documentation.
  1. 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.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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