Chargeback Prevention Tips

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Chargeback Prevention Tips

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In today’s digital world, the number of face-to-face debit and credit card transactions has decreased. Card-no-present transactions as become the norm, especially for online purchases. According to a study, the number of shoppers in brick-and-mortar stores was cut in half within a three year period. The main reason for this is that consumers online shopping instead of going to the store. And because of this, the number of card-not-present chargebacks has increased as well. – PowerPoint PPT presentation

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Title: Chargeback Prevention Tips


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Chargeback Prevention Tips Preventing
Card-Not-Present Chargebacks
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  • In todays digital world, the number of
    face-to-face debit and credit card transactions
    has decreased. Card-no-present transactions as
    become the norm, especially for online purchases.
    According to a study, the number of shoppers in
    brick-and-mortar stores was cut in half within a
    three year period. The main reason for this is
    that consumers online shopping instead of going
    to the store. And because of this, the number of
    card-not-present chargebacks has increased as
    well.

3
Limit Criminal Fraud
  • Unscrupulous people use stolen debit and credit
    cards details to make unauthorized transactions.
  • More often than not, they choose online shops
    that allow card-not-present purchases.
  • It is important to keep an eye out for suspicious
    transactions and to validate the transactions
    before completing the orders.
  • Another way to reduce chargebacks is to use the
    card providers fraud detection tools.
  • Verified by Visa and MasterCard Secure Code are
    anti-fraud detection programs that ensure that
    the cardholder is the one making the purchase?
  • The cardholder is required to provide a
    predetermined personal identification number
    during the checkout process.

4
Limit Merchant Mistakes
  • Chargebacks are also caused by mistakes made by
    the retailers
  • Oversights and errors in business practices can
    also lead to revenue loss due to chargebacks
  • It is important that your return and cancellation
    policy is clear and easy to locate.
  • Customers must also accept the policy before
    processing their transaction.
  • It is also important to make sure that the
    processing procedure is optimized.
  • Make sure that you get authorization first before
    processing any transaction. It is also important
    that any transaction is processed once.

5
Limit Chargeback Frauds
  • Chargeback fraud is also known as friendly fraud.
  • This is the case when customers use the
    chargeback system to get a refund. Instead of
    contacting the merchant for a refund,
  • They use loopholes in the chargeback rules and
    void the transaction through the bank.
  • One chargeback solution to this problem is to
    improve customer service. Customers are more
    likely to go through the traditional refund
    process instead of a chargeback if the retailer
    is easy to deal with.
  • Another solution is to have a no questions asked
    policy for returning items. If you are offering
    digital goods, then make sure that you have
    additional security measure.

6
These are some of the chargeback management
solutions that will reduce card-not-present
chargebacks. Retailers can consult chargeback
experts to help maximize profitability, and
protect ones merchant account.
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