How to Prevent Chargebacks

Do you sell goods and services online? If you do, you likely understand the paramount importance of being able to accept credit card payments. Although this is an important part of business, some customers will utilize the opportunity to their advantage. Some will fraudulently pretend that they never received the item or the item was damaged, during shipment. They’ll contact their credit card provider and file a claim against your business. This will not only result in a tremendously frustrating experience, but also it could result in lost revenue. This is why it is vital to learn how to prevent chargebacks.

Preparing

Although the majority of individuals is honest and will not file a chargeback fraudulently, some will and it is essential to learn how to prepare. During any transaction, you should go above and beyond to keep detailed records of each step in the process. For instance, you should keep documentation of the order invoice and initial payment. When you ship out the item or deliver the service, you should document it. Finally, if you provided the customer with a refund, you should also take note of this action. Although these actions will not prevent chargebacks, they can help you fight against fraudulent ones.

Customer Service Is Key

It is essential to remember that many customers will not immediately file a complaint against your company. Instead, they’ll reach out to your company and attempt to work through the problem. This is where your company’s customer service department will come into play. It is imperative to make sure that you respond to each customer rapidly and attempt to rectify their problems to the best of your ability. If the customer’s item was damaged during shipping, you may want to send them a replacement, so you can avoid a chargeback.

It is also recommended that you construct a thorough return policy. Be sure that this policy is readily available to the consumer.

Keep In Contact

One of the best ways to avoid chargebacks is by keeping in constant contact with the customer. Once the customer has finalized their order, you should send them a confirmation. After you’ve received their payment, you should do the same. After the item has been shipped and received, you should do your best to get in touch with the customer and ask them about their experience with your company. This will help you avoid being surprised by a chargeback and will give you the ability to smooth things over, before the customer can file their claim.