If you own a business, you’re probably aware of what a chargeback is. If not, a chargeback is simply when a customer disputes the charge/purchase with their issuing bank.
There are many techniques you can implement to help you minimize the amount of chargebacks your business may receive.
Tip # 1
Use address verification (AVS) and verify the security code on the back of the card.
Tip # 2
Ensure your descriptor matches the name that your business is known as. a descriptor is what a customer will see on their credit card statement when they’ve made a purchase from you. if they see a descriptor they don’t recognize, they may think they did not make that purchase and attempt to initiate a chargeback.
Tip #3
Whenever possible, get the cardholder’s signature or imprint of the credit card at time of purchase.
Tip #4
Keep your customer informed of the status of their purchase if you are shipping them their purchase.
Tip #5
Ship orders to the billing address of the credit card with delivery confirmation such as a signature whenever possible.
Tip #6
Use caution when accepting credit cards from various countries; obtain as much customer contact information as possible.
Tip #7
Include an itemized invoice for all purchases
Tip #8
Ensure your refund policy matches the nature of the business; and issue refunds when possible.
Tip #9
Include 2 forms of customer service contact information such as a phone number and email address.
Tip #10
Respond to all chargebacks– do not miss an opportunity to get your money back.
