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Tips On How To Prevent Chargebacks

Consumer law is created in order to protect customers whenever they are using their credit cards. If a fraudster steals their credit card information and the merchant refuses to refund their money, the owner can call his credit card company in order for him to get his money back. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.

Despite the fact that chargebacks are legal and every customer has the right to request for one when necessary, too much chargebacks against a merchant can damage his business big time. This is because the fees and fines the bank charges the merchant for chargebacks can easily pile up. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.

According to the chargeback company, merchants can easily avoid this by simply reducing the number of chargebacks they receive. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.

Listed below are some effective ways on how to defend your business against unfair chargebacks.

1. Make sure your business provides excellent customer service.

According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. Provide your customers with a lot of options to get in touch with you, including a landline number or a cheap web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.

2. See to it that your description for your items are clear.

According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. If you make sure that all of your products have a detailed description, you will definitely avoid any misunderstandings.

3. When it comes to fraud, you have to be very vigilant.

According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.

4. Your business needs a secure payment system.

It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, we can do this by simply implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.