For those who have an online business that works with cards, the chargeback It’s a real headache, even more so when the company is unwilling to address the issue. If you’re starting an e-commerce, make sure that’s not the case.
what is chargeback
The chargeback is made to the consumer cancel a purchase made with a debit or credit card. It is a problem that arises from two main reasons: the cardholder does not recognize the transaction or the operation does not comply with the regulations set out in the card management contracts. There are two other reasons why online retailers should be wary: fraud and customer dissatisfaction.
Six tips to avoid chargebacks
All of the above cases have a common result: the sale takes place, but later the company has to return money. Here are six tips to minimize chargeback risk in your business.
Use a familiar name
One of the reasons for customers to cancel the transaction is that Non-recognition of the name in the collection which appears on the credit card statement. This occurs when the company’s official name differs from the name that appears on the Internet. It is possible to use a more common term in the description that appears on the invoice rather than the company name.
Some customers make a chargeback request and don’t see a charge, others have time to investigate the source of the charge. To help with this, stand ready to answer and offer quick and easy contact options.
Detail your product well
The best way to avoid chargeback requests due to customer dissatisfaction is to prevent them from being dissatisfied. It seems easy, but it isn’t. Requires that the description of products and services are very well done and specify exactly what the customer is setting so they can’t claim to have been negatively surprised.
not cover probationary periods
A very common practice in the online environment is offering free trial periods for services. However, many of them ask for the credit card information at the beginning of the process and start topping up at the end of the test automatically to the consumer who didn’t cancel the service, causing disruption for those who didn’t want to pay for the product, and also for the business that needs to process chargeback requests.
To avoid problems when offering tests, exit the payment option at the end and verify that your customers are the ones you want Use your productsnot those who forgot to cancel the fee.
Don’t promise impossible things
This point is clear. Don’t overdo the promises. For example, don’t offer a life contract because you never know when the direction of the business will change.
Because chargebacks can give your customers refunds in one way or another, create a clear policy and relevant to the area and avoids the image wear and tear caused by an unnecessary problem.