5 Tips To Avoid A Chargeback
Each credit card processor has unique protocols regarding how credit cards are accepted. For in-person purchases, verify the card’s expiration date and enter the three-digit security code. For online purchases, additional information such as digital signature, social media profiles, IP address, and a second passwordare suggested.
Descriptors are your merchant’s name, exact product description, and other pertinent information that appears on the cardholder’s statement connecting the purchase to your company. If these are unclear, the cardholder may not recognize the purchase and thereby file a dispute.
Look For Indications Of Fraud
Take the time to learn indicators of fraud such as suspicious name, incorrect security code, mismatched billing and shipping addresses, missing information that the cardholder should know and so on.
Your employees need to be properly trained to identify fraud and prevent chargebacks pertaining to both in-person and online credit card transactions. They need to know how and when to call in a Code 10 “suspicious transaction” so the issuing bank can verify with the cardholder.
Strong Customer Service
Good customer service is critical for resolving chargebacks. Using notifications from the credit card processor, you can quickly identify a customer’s dispute. As a result, the problem can be handled in a timely manner, allowing you to retain a good customer and avoid the chargeback through resolution.
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