How To Avoid Credit Card Chargebacks
Steps every business owner should be taking to avoid chargebacks
If you’re business accepts payments through credit card, one of the bigger aspects you should be concerned with is the risk of having charge backs. This article brings you into discussion on what chargebacks are and how you can avoid them as a business owner.
What is a chargeback? When a customer places an order and pays with a credit card, they may change their mind and request a refund from their card issuer.
Consequently, the merchant ends up losing the sale that is supposedly completed. There are different reasons why chargebacks happen. If a customer isn’t satisfied with the order or if the shipment has damages, the customer may call off the purchase and demand a refund. Another cause or reason would be identity theft. A thief may have stolen the real cardholder’s information and used it to place the order. When the real cardholder receives his/her billing statement, he or she may call the credit card company to dispute the charges as unauthorized or fraudulent. In response to the dispute and after an investigation has been conducted, the card issuer may reverse the disputed transaction.
How to Avoid Charge Backs
Clearly, credit card chargebacks can affect your business particularly if you’re dealing with a large order or if chargebacks frequently happen. Sometimes what seems to be a made profit will turn out ot be a loss. This is why, business owners need to make sure that orders are delivered with utmost care and reach their customers in the best condition. Furthermore, online merchants should keep an eye out for fraud. When accepting credit card payments, it is crucial to ensure that you are dealing with the real cardholder and that the purchase is made in good faith. Here are essential tips on how to avoid credit card fraud and chargebacks:
- Swipe the card or imprint it on the transaction receipt. In every card purchase, never forget to swipe the card. Thus, in case of a dispute you’ll have evidence that the customer used the actual credit card to make the purchase.
- Closely examine the cardholder’s signature. Don’t skip on this crucial step. Spending a few seconds to check the authenticity of the cardholder’s signature can save you from possible fraud. Never assume that just because the person has the credit card, he/she is the actual owner.
- Ask for proof of identification. Require your customer to present a valid ID (for reference) especially for large purchases.
- Check the credit cards’ date of expiration. Make sure that the credit card is not expired. Credit card thieves sometimes use old or expired credit cards to make small purchases and get away with it.
- Call the credit card issuer. If you have doubts as to the authenticity of the credit card or the identity of the holder, take a moment to call the credit card issuer to confirm the details. If you’re going to make the call, make sure that you have the credit card on hand. It is also wise to make the call in front of the customer to ensure that you are only making a confirmation.
Consumers are advised not to let their credit card out of sight due to phishing & extra swipe scams.
Get vital recommendations in the sphere of forex managed accounts – please study this page. The times have come when proper information is really within your reach, use this possibility.
