chargeback prevention are an inevitable part of the business world, but there are ways to avoid them. When you take the time to prevent them, you save money and avoid a lot of hassle.
Preventing a chargeback starts with knowing how to identify them and what they mean. This means implementing security practices that can stop unauthorized transactions before they ever hit your website or your warehouse.
Use customer-facing tools that can flag suspicious payments, such as a device configuration tool that records a user’s browser and app settings. This can help you spot payments made from previously unknown devices, which are a common sign of fraud.
Create a clear, concise, and flexible return policy. If customers are unhappy with their orders, they’re more likely to request a refund when your policies are easy for them to understand and work with.
Maximizing Customer Satisfaction to Reduce Chargebacks
Get full authorization for each order before charging a customer. This is a simple way to prevent improper authorization chargebacks, which are a major cause of lost sales and chargeback fees.
Communicate clear, flexible, and low-lift return policies to your customers. This will make it much easier for them to request a return and receive a refund when they don’t want something, or it arrives broken or damaged.
Keep up with your regulations and rules to stay ahead of potential chargebacks, especially when you’re dealing with international shoppers. Credit card companies regularly update their guidelines to protect consumers and merchants alike.