Chargebacks are one of the single things to avoid in business. Not only does this cause time and effort, but it can be a costly experience which many small businesses simply can’t afford.
Thankfully, there are a few things you can do to try your best avoid such chargebacks from occurring. We should point out that this will not prevent them ever happening, but will certainly drastically cut the chances.
Firstly, what circumstances might force a customer to request a chargeback?
• They never received the product they ordered from you
• They aren’t satisfied with the service or the product
• They received an incorrect bill or invoice
• They have looked at their credit card or bank statement and don’t recognise where the deduction has come from
As you can see, such events can often be out of the hands of the business, so it’s best to put into place a few prevention techniques first of all.
Always Follow The Requirements of the Particular Provider
All credit card companies have their own set requirements in terms of how a purchase should be made via their card. For instance, some ask you to check the security code, some ask you to check the expiration date. Make sure that you follow that particular process, to avoid issues.
Have a Clear Description Which Appears on Your Customer’s Bill
When your customer receives their bank or credit card statement, make sure that your company is clearly marked. This will help reduce the chances of them not recognising the transaction and requesting a chargeback.
Address Complaints and Problems as Quickly as Possible
A lot of the time a chargeback can be avoided by simply dealing with the issue at hand quickly and promptly. By doing this, you’re cutting down on a complaint being made and a chargeback being requested. If you can placate the customer enough to calm the waters, you’ll avoid the issue and you’ll also ensure that you do your best to maintain the customer for the future. Remember, word of mouth marketing is still very important in the modern day, even with the digital tools we have at our disposal.
Make Sure Your Staff Are Trained
Make sure that your employees know how to conduct a credit or debit card transaction correctly, and this will cut down on issues which may appear down the line. This should form part of your initial training for all new staff within your business.
Know That You Can Dispute the Chargeback
If you have many chargebacks over a period of time, your merchant account company might have issues and request extra information on why this is happening. If you feel that a chargeback is unfair, do be aware of your options in terms of disputing it. You don’t always have to simply accept it.
These are simple ways which you can use to help chargebacks being a less frequent occurrence. Whilst there is no company that has never had a chargeback, it’s best to do your utmost to reduce them wherever you can.
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- The Capex Team