To put it simply, a “chargeback” is a reverse transaction. When a customer does business with a merchant and then disputes that payment, he or she is then issued something like a refund, in which the money will come out of the merchants’ account and back into the customers’. The sneaky aspect of this process is known as a chargeback. When the money is withdrawn from the merchant’s account, the consumers’ credit card company will issue a “chargeback fee”. This is every merchant’s worst nightmare, particularly if chargebacks are to happen often, in which the merchant is likely to lose a ton of money. Below are a few useful tips to follow for both card present and card, not present transactions, to take back control and reduce chargebacks in your business.
What to do in Card Present Transactions
A “card present transaction” is quite simply to process a transaction in which the customer is present at the time. It is important to always verify the customer’s identity; if their signature is not written on the back of the card, always ask to see a form of identification. Not only this, but it’s essential to verify the expiration date on the card and check for the security hologram on the card. When a receipt of payment is printed, match the information such as name and account number to that on the customer’s card.
What to do in Card Not Present Transactions
A “card not present” transaction occurs when the customer is not present at the time of the transaction e.g. online transactions or over the telephone. Always ask the customer for the credit card’s expiration date, and verify the 3-digit card security code (also known as CSC or CVD). Also, use the address verification system to verify that the customer’s address is the same on both the order form and the billing address of the card. It is a fact that not using this system will usually result in higher processing fees.
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