Chargebacks. They’re an unfortunate circumstance. For one, you might have an unhappy customer that you need to take care of. But just as bad is the money that just fell out of your pocket in the form of not only a lost sale but extra fees.
Why do they happen? A variety of reasons, as you probably know. Identity theft. Improper order fulfillment. Customer dissatisfaction. Incorrect or duplicate charges.
Fortunately, there are a number of steps you can take to reduce chargebacks.
Make your identity clear. People often forget making purchases on their credit cards. When they get their monthly bill, they may be suspicious of business names they don’t recognize. Make sure your payment descriptor matches your company’s name as much as possible.
Be deliberate. We all know that paying with a credit card implies that it will be a speedy process for the customer, but that doesn’t mean you shouldn’t be careful. Check the expiration date. Enter the security code. Check to see if the signature on the back of the card matches that on the receipt. And if there’s no signature on the back, ask to see ID before you process.
Don’t put it off. If you are alerted to a dispute, try to address it with the customer as quickly as possible. To do this properly, invest the time in making sure you are offering outstanding customer service, as the disgruntled customer will likely appreciate it. You might be able to resolve the issue, save the sale, and not incur more fees.
Hang onto proof of the transaction. If your business isn’t keeping a physical or digital paper trail of each transaction, you’ll have nothing to fall back on during a chargeback scenario.
At Meridian, we’re always happy to talk with businesses about how you can reduce and handle chargebacks. Just contact us and we’ll be happy to share advice.