How To Protect Your Business Against Unfair Chargebacks
Consumer law exists so that the customers are protected whenever they decide to utilize 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. Although this benefits the customers, the same thing cannot be said for the merchants.
Despite the fact that chargebacks are legal and every customer has the right to request for one when necessary, too much chargebacks against a merchant can damage his business big time. This is because fees and fines from banks will pile up and a lot of merchants will lose money. In addition to this, the bank can even close the merchant’s account which will eventually shut down his business. 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, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these 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, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. See to it that your description for your items are clear.
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 provide them with a detailed product description, there will be very little scope for any misunderstandings.
3. Be on the look out for fraud.
According to the chargeback company, most chargebacks are caused by fraudulent activities. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.
4. You need 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. See to it that your network systems are secured so that your customers are also protected.