How to prevent Credit Card chargebacks at your business!

By April 12, 2018Payment processing
Credit Card chargebacks

How to prevent Credit Card chargebacks

As a Business owner, In some industries having to deal with chargebacks is something that happens more often in comparison to other types of businesses. Business Owners such as supermarket merchants/retail merchants and business owners that sell food. Often time face a good deal of fraudulent cards in customer-facing environments. There are various ways a chargeback can occur when accepting a card, such as

Common reasons for credit card charge-backs include:

1.Fraudulent Transaction

The cardholder has disputed the charge and stated it is a fraudulent charge. Provide a copy of any signed receipts and include proof the card was present at the time of purchase to dispute back. Always obtain a copy of the card and signature for disputes.

2. No Authorization

The issuer did not authorize the transaction. Show the denial to the customer and never process a transaction without authorization

3. Duplicate Processing

The transaction has already been submitted once. Enter payment transactions once and avoid entering them again.

4. Cardholder Doesn’t Recognize the Transaction

The cardholder doesn’t recognize your company name on his or her bank statement. Avoid this by using a recognizable name. Present proof of purchase and the customer signature to avoid a credit card chargeback.

Now let’s talk about how to prevent a charge-back with your payments. Some Merchants using 3rd Party Processing companies run into problems because the company name that appears on cardholder’s monthly statements is usually the name of the processing company and not the name of the business where they made their purchase.So, using these tips you can prevent charge-back with your payments:

1.Have Policies

Your business should have policies regarding merchandise returns, refunds, or service cancellation; these policies must be disclosed to the cardholder at the time of the transaction. Your policies should be on your sales receipts, order confirmation, thank you letters, getting the idea of everything. The customer might wonder why you add all this stuff to the emails, but when it comes time for questions they can find the info they need to get in touch with you.

2. Do not Accept Expired Card’s

Do not accept a card after its “Good Thru” or “Valid Thru” date has passed, unless you obtain an authorization approval for the transaction.

3. Do Communication

You the merchant need to communicate to the customer in such a way that they need to talk to you first! That you want to make sure they are satisfied. You need to gain their trust and confidence. Remember they are not the enemy. They just gave you money for something and they want equal value.

4. Keep Records

If your business delivers products use a carrier that offers delivery notification. Retain these for your records. In fact, you want to make sure that you keep records for all transactions so you can present these to your merchant provider and the card company if need be. The more documentation you have the better.

5. Work directly with companies

Us at virtuous payments are an agency of First Data which therefore means we are not a 3rd party vendor reselling services. In turn, this can help your business as should there be a chargeback you would be dealing directly with first data which can help in chargeback dispute processes.

A Good Merchant Provider will work alongside you rather than against the business owner/merchant when it comes to chargeback situations. It doesn’t mean that you are always wrong and the customer is always right. Facts speak for themselves and a good merchant provider will check their options before making a financial decision. Give us a call today to discuss with other in personal ways to protect your business on chargebacks.