Title: Chargeback Prevention Tips
1Chargeback Prevention Tips Preventing
Card-Not-Present Chargebacks
2- 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.
3Limit 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.
4Limit 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.
5Limit 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.