Consumer law exists so that the customers are protected whenever they decide to utilize their credit cards. Just in case someone steals their credit card information and the merchant refuses to give them a refund, they would simply contact their credit card company to have their money refunded. Even though this is good news for the customers, the same thing cannot be said for the 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 from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even close the merchant’s account which will eventually shut down his business. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open 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.
In this article, we will be discussing some tips that will help you protect 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. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. 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, you can easily avoid chargebacks by simply, being vigilant to fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.
4. Your business needs a secure payment system.
Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.