5 Useful Ways to Avoid Credit Card Charge backs

Credit card chargebacks occur when online shoppers dispute a charge on their credit cards after buying goods or availing services from your business. The chargeback is a transaction that reverses the original sale. Besides, the number of disputed charges may vary depending upon the nature of the business and type of transactions carried out.

As far as the credit card chargebacks are concerned, these transactions can be annoying as well as expensive for small businesses. Besides, this can also impact your customer service to a great extent. The contemporary payment system is full of frauds, losses and errors and that is why, card networks, banks and all other parties that are involved in the payment processing ecosystem have been working hard to mitigate these shortcomings. As for the chargeback process, it is one of those mitigations.

When it comes to chargeback resolution, you should know that the process favours the customers and is not designed to help you out in most of the cases. Besides, it is also a fact that the process is not wholly one-sided. Regardless of the outcome, your priority should always be to avoid getting into this troublesome scenario in the first place. An up-to-the-minute EPOS System can also be of great help as it makes sure that these kinds of issues do not occur at all.

Here are some of the ways that can help to prevent chargebacks from happening:

1. Use a clear payment descriptor

You should be well aware of the fact that every detail of a credit card statement is a payment descriptor. That is why, the best way to let every detail be known is by customising the text that pops up when payments are made by the customers to your business using various payment processes. Never leave it blank but try to make it as clear as possible. Besides, try to put the business name or website as the descriptor, so that the consumer can get a reminder or keep up with your customer service.

2. Describe your Product or Service in Detail

As a business, try to make sure that you give as much details as possible about your products and service policies. By doing so, you are giving out a message that the liability is more apparently falling on the consumer in case if they make dissatisfied purchases. Besides, this step is more beneficial for eCommerce businesses, as the consumer will have to make a buying decision without having a look at the product in person.

3. Record your Customer Data

You should be well aware by now that businesses often need client activity logs when they need to appeal chargebacks. By keeping this into consideration, your IT department and marketers should be well trained to tackle the scenario. Try to record as much data as possible about your users as you will need it in case of the aforementioned case. Some of the details include IP addresses, activity logs, order histories, addresses used and any other specific if possible.

Keep in mind that it is better to have too much data when you don’t need it and not when you have it when you’re figuring out a chargeback.

4. Save all Receipts

As far as the statute of restrictions for issuing chargebacks is concerned, it varies from provider to provider. However, it can range from 180 days to 3 years following a transaction in most of the cases. That is why, it is always advised that the businesses should retain their receipts and records in a systematic order, so they can precisely offer information upon request swiftly and conveniently. A cloud-based EPOS System will always be there for you when you want any kind of help regards to customers’ data.

5. Offer Great Customer Service

Truth be told, a fair portion of chargebacks happens because of customer confusion. If the customer don’t comprehend what they signed up for, they defer to making a chargeback even if there are other possibilities.

You can easily prevent the aforementioned scenario by gaining more loyal customers and which can be done by having great customer service. Make sure that you make it easy for customers to contact support. Encourage confirming contact and update emails and if any customer has a problem, make sure that you want them to keep up with you in the first place.

Being a hospitality and retail point of sale solution provider, we believe in doing the best while covering a wide range of businesses. If you are interested in knowing more about us, visit our website JeMPOS.