With so much consumer fraud and protection technologies doing wrong, merchants may feel their interests being neglected when you talk about credit card chargebacks.
If a customer falls prey to credit card fraud, it is the merchant who suffers.
Usually, the interest of customers is protected in credit card fraud.
If you know the credit card processing procedure, you may protect yourself against credit card chargebacks.
You can use these preventative measures as a merchant to stop credit card chargebacks:
- While payment processing, physically examines the credit card. Check the expiration date and match the signature on the card to the one signed by the customer on the receipt.
- Do not process a transaction if the authorization request was rejected.
- Do not repeat declined request processing.
- Do not enter a transaction several times.
- Discuss the return and refund policy when the customer is buying the item.
- Do not accept expired credit cards.
- Answer all retrieval requests as soon as possible.
How to prevent disputes?
You cannot avoid all credit card chargebacks but take additional precautions to avoid getting notice from a credit card company.
- Give your customer service contact details to your client so that they can talk to you directly in case of any dispute.
- Specify the return, refund, and shopping policies to prevent confusion.
- Ensure your company’s name and other details are mentioned on the customer’s bank statement. A lot of chargebacks take place when the customer fails to recognize the name printed on their credit card statement.
- Do not ship to an address that isn’t linked with the billing address of the card.
- Make sure you send a confirmation mail or phone message.
Above all, you should check for the best chargeback sites that can help a lot in case you need the credit card chargeback.
Know the reason codes
You are given rejection reasons while you process a card. Take these rejection reasons seriously and work to solve them. Do not make the transaction until the rejected reason is resolved.
Lastly, it is very important to have a chargeback policy on your site.
It works as an amazingly strong motivator against chargebacks and works as your major weapon to motivate people to pay after a dispute with your merchant bank is rejected.
It is legal till the time you updated and accurate information to the credit bureaus.