In the booming era of e-commerce, shoppers enjoy the convenience of being able to buy whatever they need from the comfort of their homes. They use a variety of digital payment methods to pay, so no cash is required. However, this convenience is not always beneficial for sellers.
Buyers can start the chargeback process at any time. This can happen for a variety of reasons, whether it’s the seller not meeting the terms of the sale or if the buyer is a scammer.
If sellers had to return only the money spent by buyers on goods, then this would not be so detrimental for them. However, sellers have to pay additional fees and thus suffer huge losses.
Because of all this, the business can simply go under. Thus, every seller should be aware of ways to prevent this from happening. At the very least, sellers need to learn how to manage chargebacks, so they hit their pockets not that hard. We will advise on how you can help your business.
Avoid Typical Seller Mistakes
When sellers make mistakes on their part, it is much easier for buyers to start the chargeback process than to enter into a dialogue with the seller to find out the reasons.
Therefore, the first thing you can start with is to make sure that you do not make any mistakes on your part. However, this will only help you if you are dealing with decent buyers, not scammers.
Here are the cases in which buyers immediately begin to return their funds:
- When the billing statement contains the wrong store, company, or merchant name. In such cases, buyers may think that you are engaged in fraudulent activities;
- When the buyer discovers that the seller charged twice for a product purchased in a single copy;
- When the amount withdrawn from the buyer’s card does not match the one indicated on the website. If the amount withdrawn is higher or lower, this raises certain suspicions;
- When the buyer does not receive his goods within the specified period or discovers that his purchase was delivered to a different address.
These are just a few of the cases where sellers are the cause of an increased number of dissatisfied buyers. In such cases, the chargeback management begins with eliminating all causes on your part.
Make The Company’s Policy On Returns Transparent
There are times when buyers are dissatisfied with a product after receiving it. No one is protected from this, even the most famous brands. However, you must ensure that dissatisfied customers do not want to dispute the purchase right away. One way to prevent chargebacks, in this case, is to create a transparent policy on returns.
Your customers should understand that in such cases, they can quickly and easily get their money back by returning the product to you intact. In addition, you will increase the confidence of buyers in you if you indicate on your website that in case of return of goods, buyers can take advantage of free shipping.
The main thing is that this information is visible and accessible to each client. It should not be on pages on your website that are hard to find.
Here is what you can do for chargeback prevention:
- Check that the return policy information is posted on your website. Also, make sure that every customer can easily find this section;
- Make it easy for customers to contact your support team. You can implement a chat where buyers can contact consultants in real time. In addition, make sure that your contact information, including contact numbers and emails, is listed on the site;
- Additionally, you can send your customers by email information about the return policy of goods after they make a purchase;
- Make sure that the process of returning goods and refunding money to customers is quick and without delay.
Check That It Is Cardholders Who Make Purchases
The mistake of many online stores is that they do not carefully check the information about their customers. Many online stores only allow shoppers to enter their card details to make a purchase.
However, what if the scammer got access to the buyer’s card and made purchases on their behalf? Cardholders may detect unauthorized transactions after some time. In such a case, they will have no choice but to start the chargeback process and block the card.
You can secure your business by improving the payment verification process. To do this, you can ask customers to enter the three-digit code on the back of their credit card during checkout.
In addition, you can take advantage of the 3-D Secure protocol, which is a two-factor authentication method. When making a purchase, buyers will receive an SMS message containing a one-time password, which they will need to enter to pay for the purchase.
Take Advantage Of The Software
Today, there is a huge amount of different software for various purposes. Luckily, various software programs allow you to track chargebacks, prevent them, and learn to recognize any troubling charges or customer information.
Many suppliers are ready to offer their reliable tools. Each of the tools has both its disadvantages and advantages. Thus, you should look at the most effective tools available today to make the right choice for your business.
Such software offers several highly efficient features. Tools help keep track of your rate so that the number of such payments does not exceed one percent. High risk means high fees for your business.
They help keep track of all information about operations, as well as determine if any of them are suspicious. You will be able to keep a history of all payments in case you encounter scammers. Thus, you will have all the necessary evidence. Apart from this, they also offer other features that you will find particularly useful. Such an investment will help you avoid serious problems for your business.
It may be too late for your business when you receive chargeback information. Such information is not immediately known, so you may not even know that you already have problems with card networks. You need to do everything possible to prevent this. You can make sure that there are no mistakes on your part, inform buyers about the return policy, secure online payments, and use specialized software.
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