Protecting your Business from Chargebacks

Posted by Chargeback Expertz on November 8th, 2017

The most critical thing merchant has to be afraid of while selling products and services are chargebacks. If you get the chargebacks, it may lead to decrease in revenues and may also hamper the credibility of the business. To operate profitably in the ecommerce industry, you should have proper chargeback defense policies and fraud management policies. You should always ensure that chargeback to sales as well as fraud to sales ratio is always below 2%.

In the layman language, chargebacks are disputed transactions. Chargebacks were created by the law to protect customers from the unauthorized transactions. The consumers try to have a word with the merchant once or twice but if their issues are not solved they simply raise their concerns with their issuing bank.

However, some customers use the chargebacks thoughtlessly and that can cause losses to your business in online ecommerce industry. There are few tips which can reduce the chargebacks of your business.

1.Descriptor and/or DBA Name: DBA name i.e. Doing Business As. It is the name that appears on the bank statements of the customer. Mostly customers raise chargebacks when they do not recognize the name appearing on the payment slips or bank statements. You should make sure if DBA name is different from your business name and you should also make that thing understood to the customer. It is up to you to ensure the card charges are understood by the customers.

2. Contact Details: You should provide proper contact details to your customers, if customers have any queries and if those queries are not solved they will surely go to the banks and file dispute against your business. Customer service information of the business (Phone number & email address) should be mentioned on website clearly for the customers.

3. Fraud Management: You should have proper fraud management team. The team should monitor all the transactions that take place on your website and as soon as you come to know about any fraud transaction, check the authenticity of the transaction. If it is complete fraud transaction then refund it immediately.
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