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Minimize Chargebacks and Increase Happy Customers

Chargebacks can be extremely hazardous to small businesses. 58% of the time merchants don’t even know that a chargeback is in progress. This robs merchants of the sale, plus charges them costly fees for the chargeback having occurred.   In many cases merchants can lose up to $270 in fees for every $100 in chargebacks. Preventing chargebacks should be at the forefront of any business. Not only will stopping chargebacks save merchants money, but it will also increase customer satisfaction and win back frustrated shoppers. The following are a few pointers that will keep chargebacks to a minimum and keep customers happy.

Provide Contact Information

Don’t make your customer service phone number a mystery. Always provide either a telephone number or email address. Have customer service contact information prominently displayed. Buyers may not enact a chargeback if they feel they can contact your business first.

Improve Customer Contact Points

Work on increasing customer contact points. Consider extending customer service hours so that customers will choose to contact you and not the bank.

Be Responsive and Friendly

Institute a policy that addresses how long employees have until they must respond to a customer complaint. No one wants to wait, so do your best to respond quickly and with professionalism. 24 to 48 hours is as long as a customer should have to wait to hear back from you.

Suggest Merchant Level Dispute Resolution

If a customer states they will file a chargeback, try to resolve the issue at the store level. This should be done on a case by case basis. Will the customer accept a substitute? Are they willing to wait for a replacement? Will they accept a discount on a similar product? How about a gift card?

Institute Fraud Monitoring.

Ensure that managers are monitoring high dollar transactions and that IP addresses can be tracked to prevent fraudulent chargebacks. Utilize proactive notification systems to learn of customer disputes before you are hit with fees

Provide a Clear Return Policy

Many chargebacks can be prevented if merchants have a prominently displayed return and refund policy. This provides merchants with an extra layer of security once disputes arise.

If your company needs an experienced chargeback insurance provider, contact EMB. We carry an integrated chargeback protection policy called Chargeback Shield powered by Verifi and CDRN. Chargeback Shield reduces the frequency of chargebacks by 15-30%. Contact a representative to learn more about chargeback protection for your merchant account.