How To Protect Your Business Against Unfair Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. 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. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is a huge problem for merchants because they won’t be allowed to 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. Make sure your business provides excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering 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. Be clear when it comes to the items your customers are buying.
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. Be on the look out for fraud.
According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. Teach your employees how to easily detect fraud before they process any purchase.
4. Your business needs a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.
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