Protect Your Business And Do Something About Unfair Chargebacks
The law that protects customers whenever they purchase items using their credit cards is known as consumer law. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. In addition to this, the bank can even close the merchant’s account which will eventually shut down his business. This is a major problem for merchants considering the fact that they cannot apply for another account for the next five years.
According to the chargeback company, merchants can easily avoid this by simply reducing 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.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers 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 make sure that all of your products have a detailed description, you will definitely avoid any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, most chargebacks are caused by fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.
4. You should implement a secure payment system.
Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.