If Your Business Faces Too Many Credit Card Chargebacks, You Need To Read This
When you have a great credit card payment system, your chances of being the victim of too many chargebacks are significantly lower — but it’s important to remember that even with a great secure payment processing solution, your business could still face some fees (and a lot of wasted time) from just a couple chargebacks.
So how can you protect your business and ensure that chargebacks occur as little as possible?
- The first important factor is whether your business uses a credit card payment system with merchant chargeback protection features. Chargeback policies are intended to protect consumers first and foremost, especially when identity theft or fraudulent purchases take place — but that doesn’t mean that the vendors should be completely overlooked. Many businesses have found themselves in the middle of extensive chargeback claims because their payment processing software wasn’t up to date.
- Training employees is another way to combat chargebacks. If you manage a brick-and-mortar store, the easiest way to identify a fraudulent credit card purchase is to ask for personal ID for every transaction; with ecommerce sales in an online store, it’s not always so easy to double-check identification. But even with card not present transactions, employees can learn strategies for identifying fraud by analyzing suspicious purchases or personal mailing information; sometimes businesses will even confirm online sales by sending an email or making a phone call to the customer.
- Keeping records of everything is incredibly important when it comes to managing a secure credit card processing system and avoiding chargebacks. If your business can’t produce records to prove that it’s not liable for a customer’s purchase, that business will likely end up getting the brunt of the chargeback costs. Even if it seems melodramatic, make sure to save multiple copies of every record your business generates.