FOR YOUR E-COMMERCE SITE, HOW TO AVOID EXCESSIVE CHARGEBACKS The goal of running a business is to offer a service that allows you to earn a living. However, you might lose money as a result of user returns, grievances, and fraud. As you return money through transaction processors, all of these factors add to a bad public image and an even worse private financial image. If you receive too many chargebacks due to these or other factors, you risk being placed on a Member Alert to Control High-Risk.
ENSURE ACCURATE PRODUCT DESCRIPTIONS Inadequate product descriptions are among the biggest causes of customer refunds that result in chargebacks. As a result, you can end up on an MATCHlist , which makes finding a payment processor challenging. Your business will suffer as a result. For all goods and services offered by your business, you must provide accurate and thorough descriptions of every aspect. A buyer should always be aware of exactly what they are purchasing. Let’s say your product doesn’t fit the description. In that situation, there is a considerably higher likelihood of a return and consequent chargeback through your payment processor.
NARRATIVE OF YOUR RETURNS POLICY Along with providing a product description, you can reduce the number of chargebacks by emphasizing and upholding a returns policy. Some finicky clients might wish to return a product even if there is nothing wrong with it. Your return policy has to state:
an appropriate return period. Requirements for return. For instance, misuse of a product may cause damage. either a refund or store credit is a possibility. Chargebacks won’t include store credit. concise concepts and terminology that is simple to read. Fees and expenses paid by a client, if any. Additionally, it will benefit link to your returns policy if you place it on each product page, add it to the product description, and advertise it all over your website.
USE A CLEAR DESCRIPTION IN YOUR BANK STATEMENT Every time a customer purchases something from you using a credit card or other payment method, it will appear on their statement. Customers frequently ask for a bank return when an item turns up and they are unsure of what it is. There will be a chargeback as a result. Therefore, you must always pick a name that is descriptive and contains information that is registered with your payment processing business. Do everything in your power to let customers know how your transaction will appear on their bank statements if your product is of a private nature, such as marital aids.
INCLUDE ANTI-FRAUD PROTECTIONS By 2020, 87% of all enterprises will be based online. And the quantity is increasing. However, in order to process transactions, online retail needs sensitive account information as well as personal data. This, however, makes eCommerce a top target for scammers. Chargebacks will be issued for any items bought with fake credentials. The figure will probably be high if your website is unsafe. As a result, you should take all reasonable steps to ensure your clients’ security. Geolocation, multi-factor authentication, and payment encryption will be helpful.
OBTAIN EASY ACCESS Most of the time, a customer will get in touch with you first if they need to return anything or file a complaint. However, if you don’t give them accurate contact information and utilize them, they’ll probably ask for a bank-issued refund. A chargeback will then ensue from the bank recovering the funds. In order to communicate with clients and find a mutually agreeable solution that prevents a chargeback, you should use your contact information. Excellent ways to contact with customers include email addresses, phone numbers, and even social media profiles.