What are credit card chargebacks and how to reduce and fight them
Online Merchants are always at risk of payment frauds. Banks charge them for this and sometimes it may not be the fault of the merchant to pay this chargeback. This article will elaborate on certain factors of credit card chargebacks and how best to prevent them. There are three levels of prevention for merchants to avoid paying these chargebacks. In the first level you need to take steps such as ensuring your business name appears on the card holder’s statement, the gateway’s merchant protection scheme should be in place to reduce risk and educating customers on your terms of service, payment and contact details. Get all details about your customer in terms of contact address and phone numbers. Customer’s will not be able to escape payment if all details are there in your records. In this way chargebacks can be eliminated at the basic level.
In the second level you need to ensure that the rate of the product and the currency is properly printed on the card holder’s statement. The customer cannot deny payment if there is clarity in all details.
In the third level you should use CVV number of the customer’s cards when accepting payment. This will negate mistakes in authenticating the customer’s card. As a merchant you should take all possible steps possible from your end to prevent chargebacks. Incase if there is an issue with your bank try to solve it out amicably rather than going into a legal tangle. These steps will help you in running your e-business smoothly
Tags: credit card chargebacks,Credit Card Processing