Why You Need to Prevent Chargebacks?

How to Prevent Chargebacks

Chargebacks are something every merchant should be prepared for. Online Fraud detection leads to Fraud Prevention. If your customers raise a dispute with their issuing bank the money will be reimbursed to them immediately. Now it is upon you to prove chargeback was not correct by proving that transaction was a valid transaction. You can never stop your customer to stop raising disputes but there exist chargeback prevention system to reduce such kind of disputes. Chargeback prevention is something that is critical from the business point of view.

Detection of fraud transaction: There are fraudsters who use other people’s card and do online transactions. You should have proper transaction monitoring and as soon as you came to know about fraud transaction, immediately refund the same. If you do not refund it, there are possibilities that in the future the actual cardholder raises a dispute.

Descriptor Name: The most critical reason why the chargebacks are experienced are that customers do not recognize the payments. Your descriptor name is what appears on customer’s bank statements. It should not be different from your business name or your legal name. When the Payment Gateway provider call the customers for validating transactions and they failed to recognize the payment they will surely raise the disputes.

Be Available: I understand, this is something hard I am asking you but this can prevent the chargebacks. Your website should have some sort of customer care number and business email id where they can raise their concern before going to banks. As per law, disputes can be raised by the customer until 2 years from the date of a transaction but generally, banks have policies of accepting disputes till 6 months from the date of transactions. You can hold the customer if their queries are properly addressed.

Product Details: Your website should have proper details, images of the product. It should never be the case when the product is delivered, a customer opens it and says, “Oh god, this was not something I ordered” The chances are more than the customer will raise the dispute.

Deliver product on time: Don’t hold your customer money for long. If the product is not delivered to the customer within the time frame, and their queries are not answered in time, they will ask for the refunds from their issuing bank and you will get the chargeback.

Offer Refunds: I know this is something that is tough but you have too. Chargeback is something that was created to safeguard customers. In case something wrong has happened. Initiate refund and prevent chargebacks.