An image of a credit card with bubbles showing potential ecommerce chargebacks

It’s difficult to find something more stressful for business owners than chargebacks. A chargeback occurs when your customer disputes a charge from your business. In response, a bank removes the funding from this customer’s purchase from your business account. If a shopper has a valid chargeback, the withheld funds go back to the customer.

Fortunately, there are ways to prevent chargebacks. Let the expert merchant services providers at Group ISO teach you tips about chargeback mitigation.

1. Ensure Price Transparency

A company should always provide clear pricing to its customers. If not, it could experience a wave of chargebacks for customers paying more than they expected. While this is more common in the realm of ecommerce chargebacks, a customer may also dispute in-store transactions due to confusing pricing.

You can prevent these types of chargebacks with price transparency. Let customers know their total price, including taxes and any additional charges. You may also need to explain why a shopper incurs these extra charges or fees. The more transparency your business shows, the fewer chances of another chargeback.

2. Use a Secure Payment Processing Provider

The merchant services provider your business uses can also be a major help with chargeback mitigation. Partnering with an Independent Sales Organization such as Group ISO means having a helping hand in preventing chargebacks. Our company does this by utilizing cutting-edge technology to mitigate chargebacks.

Group ISO also uses incredible fraud detection tools to prevent fraudulent transactions from impacting your company’s bottom line. Plus, our extremely competitive rates let your company do more with the revenue it earns. We also offer 24/7 support, ensuring Group ISO is available to help your business around the clock.

3. Have Easily Recognizable Billing Descriptors

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You’ve likely experienced a time when you had an unknown charge on one of your billing statements. Seeing a mysterious charge for a product or service is confusing and frustrating. Most people dealing with this problem will resolve it by contacting their bank or credit card company to dispute this purchase. If they’re successful, your business deals with another chargeback.

Fortunately, you can help prevent chargebacks by using clear billing descriptors. This is the information a customer will see after buying a product or service from your business. If you run a house cleaning business called “House Cleaners, Inc.,” that business name or something similar should be available for customers to see on their bank statements.

4. Offer Customer Confirmation Options

Another great way to avoid dealing with customer chargebacks is with confirmation options. These options act as added layers of protection against chargebacks. Plus, they’re relatively easy to set up and implement.

Some companies prevent ecommerce chargebacks by requiring shoppers to enter a special PIN or similar identifier to prove their identity. Even something as simple as requiring a customer’s signature can help ensure your business confirms their order.

Group ISO ensures your business stays in the know about customer transactions by offering Level 2 and Level 3 data processing. These processing types provide line-item details, merchant tax IDs, customer codes, and more. 

5. Keep Simple Return Policies

A customer may request a chargeback when a fraudulent transaction happens, which is understandable. However, a customer sometimes requests a chargeback when a return would be the more helpful option for the customer and your business.

Sometimes, a customer seeks a chargeback because they assume it’s easier than completing your company’s return process. Ironically, chargebacks are often harder for companies than if a consumer returned an item.

Your business can prevent chargebacks by keeping its return process clear and easy to understand. When shoppers know your business has an easy refund and return policy, they’ll typically avoid the more complicated chargeback process.

It’s also crucial to employ friendly customer service specialists to handle returns. Poor customer service may send a shopper to their bank for what they believe is a less adversarial chargeback.

Trust Group ISO for Help With Chargeback Mitigation

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A vital aspect of preventing chargebacks is partnering with a reliable merchant services provider. Group ISO is the merchant payment solution provider your business needs. Our company does everything in-house – never outsourcing your business or our services to another company. From approvals to underwriting and risk assessment, Group ISO always works in-house. We also offer Level 2 and Level 3 processing, which B2B companies often require.

Contact Group ISO today to schedule your free consultation. One of our friendly and knowledgeable experts can’t wait to walk you through everything we can do for your business.

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