All e-commerce merchants are prone to Credit card Chargebacks. Such Chargebacks result from situations in which shoppers make purchases or pay for services using a credit card only to come disputing the charges from the credit card issuer later.
Such instances can be so devastating especially if you take no steps in dealing with the ever-increasing Chargebacks.
- Prioritize customer service
Nearly all merchants are setting up Shopping cart platforms. And to thrive amid such competition, you need to stand out. That’s why it’s essential to improve on customer service.
Gone are the days when automated voicemail systems or a long list of FAQs could solve all problems for clients on your e-commerce site. Visitors need a quick, direct and comprehensive response from a live person. Also note that the more support you give to a shopper, the lesser the mistakes which may later lead to Chargebacks.
- Restructure your shipping operations
Fast and efficient shipping is imperative for all merchants especially if you are an infomercial, network, multilevel or a direct marketer.
Such companies are known for attractive ads which often push customers into impulse-driven purchases. That’s why you need to streamline your shipment process. Make it fast and efficient. Delays will only make you susceptible to Chargebacks.
On the other hand, same-day, next- or two-day shipment will leave little or no room for Chargebacks. It’s important to note that customers only order products when the need to use it arises. Shipping it a week later may not be useful to them.
- Make simpler your cancellations and returns
While this may seem like going against yourself, providing a clear-cut cancellation and return procedure will help you avoid Chargebacks and the extra fines that come with them. In a nutshell, returns are less costly than Chargebacks.
Here are tips you can use to minimize returns and cancellations:
- Have a precise and easy-to-follow procedure for what can be canceled (or returned
- Be polite. Avoid harassing customers who wish to return products. Have a courteous customer service that can handle all return cases.
- Display your cancellation and return policy on your website as well as on the invoice
that is shipped along with the item.
- Use scam prevention tech
Fraudulent transactions are a common cause of Chargebacks. Scammers illegally get hold of credit card data which they can use to make a purchase. For that reason, you should guard against deceitful Chargebacks by employing the use of customized security tools.
The market has provided a variety of fraud prevention tools for merchants to use. You can also consult with your payment processor, e.g., eMerchantBroker who specialize in Chargeback Prevention to get the perfect combination of tech you can use for your business.
Examples of such tools could include:
• Anti-fraud databases
• Chargeback notification
• Card security codes