Chargebacks

A chargeback is a reversal of a charge that a merchant has made on a customer’s card. Chargebacks can occur for a number of reasons. These different reasons would include; double-charging, non-receipt of goods or services, fraud or customer dispute. Merchants who have too many chargebacks can lose their merchant account and be placed on the TMF also known as the match list. Merchants who find themselves on this list will not be able to re-open a merchant account or open a new merchant account. Internet and phone order based businesses usually have the highest amount of chargebacks. There are a few different ways to avoid chargebacks.

-Make sure that your customers have all of your company’s information including; a phone number, email address and website. If you are operating a website make sure that your business is has a confirmation page that lists your company’s information and the name that will appear on your credit card statement.

-Make sure that your customers receive an email confirmation after the order has been approved and after the product has shipped.  This will confirm that their order was successful and they now will be able to track it before delivery.

-Triple check all international orders. Many orders originating from foreign countries are fraudulent.

-Always ask for 3 digital cv2 codes for all purchases. This will make sure that the person ordering actually has the card in their hand.

-Make sure that all orders that are shipped have to be directly signed for before they are delivered. This is crucial in the process of fighting a chargeback.

-Address verification or AVS is a great tool to verify customers and their addresses. Always ship to the recipient’s confirmed billing address. This will assist you if a chargeback is issued by the cardholder.

-Answer phone calls and return emails promptly. This will level of close contact with the merchant will decrease the chance of chargebacks. Merchants who do not perform good customer service find themselves with a number of chargebacks.

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