We would be hard pressed to find a merchant enjoys dealing with chargebacks, or doesn’t find the process to be a nuisance. Unfortunately, most retailers will go through the chargeback process from at least once as a part of doing business. While they may be annoying, if you’re following proper procedures, you’re more likely to get through the process with ease. Consider the following three simple ways to prevent chargebacks, and if they’re something that you need to implement at your business.
Ensure Your Basic Ecommerce Fraud Prevention Tools are in Place
Though this may sound like the most obvious way to keep chargebacks from happening, there are many businesses that still don’t have some basic fraud tools in place. This comes down to three features that need to be included in your ecommerce payments page:
CVV, which authenticates that the cardholder has the card in hand by asking for a numeric code on the back of the card.
AVS, which authenticates the address attached to the card with the address the customer confirms is their own.
3D Secure, which incorporates tools like Verified by Visa and Masterpass by Mastercard into the payments system, adding an additional password authentication requirement for customers.
Keep Your Receipts
Many common chargeback types can be easily disputed by maintaining one or more kinds of proof of purchase. Whether it’s a “non-receipt of merchandise” claim from an ecommerce sale, but you have the delivery receipt from your shipping company to prove it was dropped off and signed for, or a “paid by other means” claim, but you have the final payment receipt stored, keeping receipts can save you significantly in the long term. Keeping receipts digitally is also worthwhile, as paper receipts can discolour or damage with time. Your POS system may already keep records of daily sales within its reporting tools, so make sure to check for that option.
Properly Disclose Store Policies on Your Website
In addition to making sure that you retain your sales records, it’s important that you equip your customers with the knowledge about what they’re agreeing to before making a purchase.
This means including explicit information on your website about your shipping policies, refund policies, and any other post-sale information that your customers should know. If a chargeback dispute were to occur from an online sale, it would help to show that you had made your policies available for customers to consider before shopping. This goes for in-store purchases as well. Make sure that your refund and return policies are clearly outlined on your receipts to ensure customers are educated about their options. Verbal confirmation of the policies is not enough proof in a chargeback scenario to keep you safe.
If you’re interested in learning more about chargebacks and how to protect yourself from them, make sure to check out our articles The Top Five Reasons for Chargebacks [VIDEO] and Chargebacks 101: Merchant Must-Knows [Infographic].
The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed.