How To Protect Your Business Against Unfair Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. If a fraudster steals their credit card information and the merchant refuses to refund their money, the owner can call his credit card company in order for him to get his money back. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because fees and fines from banks will pile up and a lot of merchants will lose money. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. This is a huge problem for merchants because they won’t be allowed to apply for another account for the next five years.
According to the chargeback company, merchants can prevent this from happening by simply controlling the number of chargebacks they receive. Yes, it is true that there will always be some customers who would take advantage of chargebacks to gain goods for free, however, merchants can still do something to defend their business against unfair chargebacks.
In this article, allow me to share with you some tips that you may use as your guide when protecting your business against unfair chargebacks.
1. Make sure your business provides excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Keep in mind that the foundation of your business is excellent customer service. You have to consider having low-cost communication options for your customers like a landline number or even a web chat. Investing on the training of your your customer service team so that they can easily handle difficult customers will also play to your advantage.
2. Make sure that your description for your items are clear.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.
4. You should implement a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.
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