From Calling to Chargeback Insurance: How to Keep Chargebacks Away
Chargebacks from fraudulent transactions can hinder your business. These often come as surprises to merchants, as many times the customer’s bank does not alert the merchant to the problem. However, there ways to help protect your business from chargebacks, from questioning odd transactions to investing in chargeback insurance, and they are easier than you think.
First off, go with your gut. If a transaction seems suspicious, feel free to contact the person listed in the cardholder’s info section of your payment page, just to check it out. If there is legitimately something wrong, cancel out the transaction, and let the cardholder know what occurred. If everything seems okay, well, it is always better to check it out than to face chargeback fees. You can also have a warning posted on your website, stating that all “suspicious” or “questionable” transactions will be contacted in order to ensure the order is not fraudulent. These can include orders where the name and address do not mesh (i.e., and American name with a foreign address), a large transaction, or a lot of small transactions coming from the same IP address, but are sent to various addresses. In addition, the new trend with hackers is to make small purchases with the stolen data, as was found out by the Target data thefts from 2013. When in doubt of any transaction, be sure to check it out.
It is always best to include a section for a CVC or CVC2 code to be typed in before an order is processed. This helps protect from cyber thefts, and many thieves do not have this data. Another tip is to be cautious of foreign addresses that are not military addresses. These addresses should be checked out, especially if they are in hotbed areas for fraudulent activity, such as Indonesia and Eastern Europe (Russia, Ukraine, Belarus, etc.). While not all orders will be fraudulent, again, it is better to be safe than sorry.
It is an absolute must that any merchant, high risk or not, invest in chargeback insurance. eMerchantBroker.com is a leading chargeback insurance provider. They have collaborated with Verifi and CDRN, which helps to alert you to chargebacks, as well as save your company money, at times as much as 30% in chargeback fees.
There are many ways to help combat chargebacks, from common-sense methods to chargeback insurance. While chargeback insurance may seem like a hassle, it is always best to be prepared than to suffer the consequences. Chargeback insurance can help save your company money, which is something that everyone loves.
For more information on chargeback prevention, contact us today by clicking on the button below.