Credit Card Chargeback
Minimize Credit Card Chargebacks
A charge back is a reversal of funds on a transaction. This occurs when a buyer contacts their bank and disputes a charge that was made on their account. Although a chargeback can affect your business, there are several reasons why a customer may dispute a charge.
Why would a consumer dispute a charge?
- A customer may claim that the purchase wasn’t authorized. This is then followed by a fraudulent investigation or claim.
- An item purchased or service rendered wasn’t delivered as promised which can create a negative interaction between your customer.
- The customer was charged an incorrect amount or multiple times for 1 transaction. This is usually due to a point-of-sale transaction error or communications issue between the customer and merchant.
- The customer may not remember making the purchase, when most times they truly did authorize the purchase. Which is important for owners to keep paper records and electronic journals to prevent the unlikely event.
How to Prevent chargebacks?
- Get a signature– A signature on the credit card receipt and matching it to the back of the credit card is often proof enough that the customer was physically present at the time of the transaction.
- Ask for a PIN– By asking your customer to PIN validate the transaction you minimize the possibility of a fraudulent debt card activity. PIN codes make it difficult to complete a transaction for those who commit fraud.
- Check ID– Take the time to ID every customer that is using a credit card, this ensures that only those who are entitled and authorized to use the credit card are doing so.
- Settle disputes directly– Most customers are reasonable and may have simply forgotten about the transaction, which is why it is important for you to take notes of each transaction and interaction you have with a customer.
- Use a clear payment description– Your payment descriptor is the merchant name and other identifying details that appear on the customer’s credit card statement when they make a purchase from you. If you list a different name than what the customer might recognize the customer may not recall the purchase.
You work hard for every dollar that comes in, and every dollar counts. With Good Loans, you get a simple and effective system of detailed record keeping that reduces chargebacks, as well as an experienced team of experienced professionals dedicated to protecting your business.