Bring Your Chargeback Ratio Under Control- Some Tips

Chargeback is a sad part of reality for the small and local business owner that accepts credit card.  It comes with excessive chargeback fees and additional expenses for tracking and investigating the fraud.  Fortunately, there are some ways on how you can protect your business against the unfair chargebacks.  This situation happens once the debit/credit card holder disputed a charge on their issuer.  In case the issuer found the dispute valid, the account of the merchant will be debited for the charge that was cleared previously; this can ultimately affect your revenue.  Here are some chargeback solutions that can help you prevent high chargeback ratios.

Utilize a Name That Consumers Can Recognize

The description of your business is basically the name that will appear on your customer’s monthly statement.  The primary cause of the chargeback is that they do not recognize the name of their merchant.  In case that your identity bears a different name other than your legal name or website, you can choose the name of your official site.  You may also use the URL of your e-commerce site that the customers can easily recognize. The name appearing on customer’s statement should be clearly identifying you to the cardholder.

Be Accessible Every Time

There are indeed some customers that will instantly file a chargeback by the time that they do not recognize a certain charge on their online statement.  However, there are also other customers who will research before filing a dispute.  You need to guarantee that there are different ways for the customers to reach you.  You may include your e-mail address, social networking account, phone number and mailing address on your website contact page. Be available as much as possible for your customers. Providing 24/7 customer services is the best way to resolve the chargeback before it occurs.

Provide a Complete Detail

Most of the people who initiated an online purchase ended up being disappointed because it fell short on their expectation.  The next thing they will probably do is to issue a chargeback since this is the product they expect.  A great chargeback prevention practice is to provide a comprehensive detail about the product.  You should include a photo of the product in different perspective.  Providing photo in different dimension can also help you in selling your product.

A Free Trial Should Be Free

If you are running A Trial Continuity Business than you should allow your customers to use the free trial for the good time period for free. The time duration should be clearly mentioned on website, customer always aware of it and processed the order by accepting the Terms and Condition of the free trial. You can also contact your customer before engaging them in a recurring transaction to know how they have ended up with the free trial. A good feedback always makes a good customer for the company.

Offer refund

This is the best approach in preventing the excessive chargeback fees.  You need to be aware that the chargeback was created as a form of security for the consumers and not for the merchants.  In case they are not satisfied with the product, they will be determined to get their money back.  Avoid the fees that come with the chargebacks by offering the refund.

These are some practices that you can use on your chargeback prevention system.  Managing chargeback is crucial to protect the revenue of the small and local business.

How To Minimize Chargebacks?

Chargebacks are a Big problem! Nearly all Small Businesses use some kind of CRM tool which has an option to blacklist an Online Shoplifter. Some CRM programs like OrangeCRM, Limelight, Chargify, Zoho allow merchant accounts to integrate with other fraud and risk management companies. At ChargebackExpertz.com, we fight existing Chargebacks and will represent your disputes against your merchant account

Online Retail Stores must be compliant.The website is required to be secure and must reflect the Terms and Conditions, Refund Policy and Return Policy. The website should also have a valid phone number and an email address under customer support. Alerts and Complaints are handled by our Pre-Chargeback Alert System. This includes, complaints with the Better Business Bureau, Attorney General’s office, Discover and American Express, Ethoca Fraud Alerts, Verify CDRN, Sales Drafts, and Retrieval Requests.

Customer Service and an hour per day Social Media helps! There is nothing better than a Happy, long-term customer. Consumers gain trust in companies who share training videos and other help related tools. Merchants can create Facebook Fan Pages, Twitter Accounts, share videos on Youtube and Google+.

ChargebackExpertz database allows scrubbing of over 500,000  online shoplifters and minimizes Friendly Fraud. ChargebackExpertz works with online companies who need a strong and long term risk management partner. Working with Chargeback Expertz is extremely easy. We will work with you to customize a plan tailored to your specific needs. Need help with Chargebacks?  Need help with Chargebacks? Please complete our form for a Free Chargeback Analysis. We’ll Help Reduce Chargeback Fraud.

Important Role of Card Security Codes In Chargeback Prevention

In an era wherein digital technology has changed our lives in more ways than one, it is important for businesses to keep up and to take advantage of such innovations in order to improve their services. To do this, many are now offering credit card payments, which can be safe, convenient, and hassle-free for their customers. However, there are also drawbacks, especially on the part of the business. For instance, businesses have to deal with Chargebacks, in which the amount that has been paid by the buyer will be returned after they received the product. Chargeback frauds can hamper the finances of a business, which is why it is critical for such to be addressed in the most effective manner that is possible. The management must have a robust plan for chargeback management.

Chargebacks are common problems amongst many businesses. With chargeback frauds, the financial performance of your business can suffer, which is why it is critical for such to be addressed in the most effective manner that is possible. With this, the use of card security codes can help in effective chargeback management.

What It Is?

Also known as card verification value, the card security code refers to the three digits that are found at the back of your MasterCard, Discover, and Visa credit cards. For American Express credit cards, on the other hand, they are four digits and can be found in front of your card. This can be used as one of the most effective tools in the prevention of high chargeback ratios.

Uses of Card Security Codes

Card security codes can be used in transactions wherein the card is not physically present, specifically when shopping online. It can be used for the purpose of validation. If the codes match with the authorization request, it means that the account matched with the records of the card issuer, and hence, you can proceed with the transaction. If the codes do not match, this is an indication of fraud, and this means that you should not proceed with the transaction.

How It Can Be Used To Prevent Fraud

Using security code to fight chargeback is an easy process. When customers place an order from your online store, all that you have to do is to ask them about the security code of their card. This should be included in the form that they have to fill up as payment is settled. This is one of the best solutions for fraud management. This can be an excellent chargeback prevention tool since you can be assured that the cardholder is the one making the purchase. If the customer cannot provide the security code, chances are, the transaction is fraudulent.

Most Important Role of Card Security Codes in Online Transactions

When it comes to online transactions, security is the most important role of card security codes. It will be an effective fraud protection mechanism, and consequently, will help in the prevention of chargeback. If it cannot be provided by the customer, it would be best to have the transaction automatically terminated as there is a high likelihood that the buyer does not hold or own the card. Theoretically speaking, only the owner of the card will know the card security code, which will help in lowering the possibility of a chargeback. Merchants are not actually required to use these codes, but if you want a high level of security and to prevent fraud, it would be best to require the provision of card security code.

However, while it can be an excellent tool for chargeback management, it will be good if it is going to be complemented with the address verification system. This means that the transaction will not be processed unless the information entered a match with each other, including the address and the security codes. You can also personally follow-up with the customer, such as through making a phone call, to be sure that they are the one making the purchase.

Some Useful Guidance On Chargeback Prevention Alert

We have many many sources to detect fraud and possible chargebacks. Over years we have partnered with banks, financial institutions and Trusted Data Contributors who update your data across many sources to provide real time data chargeback prevention alerts. Merchants can now resolve or refund their unhappy customers and not have to deal with hefty fees due to fraud.

For High Risk or Low Risk business ALERT is an option to avoid chargeback, due to this option merchant can reduce the chargeback ratio which is good for merchant’s account.

Excessive chargeback is not good for merchant’s MID because after. Too many chargebacks state that merchants mid is in danger and may be very near to close the Account. Acquirer won’t wait to cross the Account limit, MID will close as soon as chargeback flow is high. Alert will provide an option to control chargebacks and maintain chargeback ratio which is good for merchant’s account. Merchant has the various option after receiving an alert like Merchant can issue Full Refund, Partial Refund, Reshipped the merchandise or hold the merchandise which ready to ship or Contact to a customer and resolve the issues.

Benefits of Chargeback Prevention Alert

• Overall Chargeback alerts reduction by up to 40%
• Avoiding costly fees, fines, penalties, and potential loss of your processing privileges.
• Real time notifications to help stop losses by preventing chargebacks from additional billings, and from the fulfillment of goods and services.
• Zero-defect guarantee ensures that if a case is successfully resolved but later filed as a chargeback, you don’t pay.
• The intuitive self-service portal can have you up and running within a day without tying up and of your IT resources.
• You still maintain control whether you decide to stop fulfillment, provide a refund, or take no action and accept the chargeback risk.

Maintain a healthy account : 

To maintain a healthy account is a must if you plan on being in the enterprise for the long haul. There are several methods which can be now available to prevent Chargebacks from hitting your account. it’s far particularly endorsed you visit an experienced business enterprise. they’ll take the subsequent three Steps to restricting the consequences of chargebacks

How to recover money after a chargeback?

You can also try to do it yourself following these steps. Respond as soon as possible, time is of the essence

Gather information about the transaction including the results of the CVV and AVS Show a copy of the receipt that was shown at the time of the purchase Send proof of shipping when possible Show accurate and appropriate marketing material and user flow to the ultimate purchase when appropriate Include copies of any correspondence as well as any notes generated by customer service If pre-authorization was obtained from your processor, include proof.