Lowering the risk of chargebacks within an e-commerce business is a challenging task, but it is one which is required, in order to ensure business success.
By helping to prevent chargebacks from occurring, you’re keeping profits in your bank account, and you’re also less likely to have to deal with disputes associated to chargebacks. This is a time consuming process, and best avoided if at all possible.
In order to find the right method of managing chargebacks, you need to ensure that you find a tailored solution for your particular business. Every business is individual. You will need to identify the main types of chargebacks you’re experiencing and then lower the risk of fraud at the same time.
We are on hand to help you prevent chargebacks and fraud, via a tailored approach, however there are some regular techniques you should put in place now, to help calm the waters.
Utilize verification tools, such as address checks and credit card processing safety checks, such as ‘Verified by Visa’.
If you are sending orders to an address other than the billing address, verify these personally.
Also personally verify orders which are high value.
Always ask the security code of the credit card at the payment point.
Give information to customers prior to the sale, which outlines the returns policy, and again after the sale.
Ensure that your product descriptions are as clear and accurate as possible.
Keep customers up to date and communicate effectively and clearly.
Fraud is something we have to unfortunately have to deal with these days, and it’s important to put into place various methods to help reduce the risk of it happening to your business. Using a high quality credit card gateway can help reduce the risk, or a Shopify Payment gateway which is secure and high quality. In addition, the following items should be implemented:
Fraud detection on mobile sites
Device fingerprint identification
Detection of IP addresses worldwide
Reporting of business intelligence
Order management in place which is quality and effective
Linking of orders which are global
Our high risk gateway services can help protection against the unscrupulous types, and leaves you open to doing business with the honest ones.
Your free merchant account offers chargeback alerts, avoiding disputes which can take time and money. We work with countless merchants account issuing bodies, including major banks, and as a result we can alert businesses of a chargeback before it makes its way to the card network itself.
This alert needs to be intercepted quickly, as there are only 72 hours before the chargeback requires action to be taken.
By knowing about a chargeback before it is in place, businesses have a small opportunity window which allows them to take faster action. This means a refund can be given, the customer can be placed on a black list, the shipment of the order can be cancelled, or the chargeback can ultimately be accepted.
Let’s explore each of the options in more detail.
Giving a Refund - Giving either a full refund or a partial refund is the most common type of merchant account action. This means the chargeback doesn’t go ahead.
Customer Blacklisting - A rather drastic approach is sometimes necessary when it comes to high risk payment processing, and one suggestion is to blacklist that particular customer. This is sometimes a necessary approach, if the customer has tried to chargeback before, or has a history of fraudulent actions.
Cancelling The Order/Shipment - The alert of a chargeback gives you enough time to cancel the shipment of the order, and therefore stops the chargeback from occurring. There is also the chance to reroute the shipment, if it has been sent to the provider who deals with your deliveries.
Accept The Chargeback - In high risk payment processing, it is sometimes necessary to accept the chargeback and take no action. This is your decision, but an alert gives you time to think about what to do.
Using alerts which warn you of an incoming chargeback means you get to add a large amount of protection to your ratio of sales to chargeback. A business which has a high amount of chargebacks could find themselves in serious business trouble, so being aware of these beforehand gives you extra time to put into place a plan of action.
These alerts also allow you to avoid chargeback fees and also maintain healthy customer relationships, by coming to a mutually beneficial arrangement.
We offer 3D secure on our high risk merchant account services, which gives you extra protections against fraud. The major credit cards all have their own protection mechanisms, e.g. MasterCard SecureCode, to name just one. 3D secure can also help you avoid chargebacks in some situations. Having said that, MasterCard SecureCode will only help with in terms of customers who use a MasterCards, so it’s vital to have a fully comprehensive package in place, to avoid fraud and chargebacks from occurring as far as possible.
We are able to help you put together that comprehensive package, and give you the ultimate in peace of mind, not only in terms of chargebacks, but also from fraudulent actions affecting your business success.
Call us today on 208-806-2953 or contact via the below form for a 1 hour response