Reduce Your Chargeback Ratio with PurePay Payments
Reduce Your Chargeback Ratio

The Chargeback Process

Chargeback refers to when a customer disputes a transaction with a merchant, allowing them to receive their money back while keeping the product or services that they received. eCommerce is essentially a chargeback minefield. With every card-not-present transaction, opportunities arise for friendly fraud, deliberate scams, buyer’s remorse, and countless other situations that can result in a dispute.

Oftentimes, the merchant isn’t even aware that a transaction is being disputed until after the funds are taken from their account. At this point, they have only two weeks in which to respond to the chargeback. Merchants with too many chargebacks can face serious consequences above and beyond the loss of revenue from the transactions themselves, so it’s important to know what you can do to minimize the number of chargebacks coming your way.

Ways To Reduce Chargebacks

Although the process works in customer’s favor and it is impossible to eliminate chargebacks completely, there are ways to reduce your chargebacks.

  • Secure Website Encrypt the data on your site, consider using the Address Verification Service (AVS) that verifies the cardholder’s address, and collect the CVV/CVC. 3D Secure should also be implemented into your e-commerce platform. This provides another layer of password authentication from customers to ensure it’s the legitimate user.
  • Product Description When the description is incomplete or doesn’t match the product the customer receives, there are higher chances that the customer will file a chargeback. So, the more details you provide, the better. Also remove items that are no longer available.
  • Recognizable Descriptor Use a name on card descriptor that your customers will recognize. Your credit card descriptor is the name that shows up on your customers’ credit card bills or online statements.  One of the biggest reasons merchants experience chargebacks is because their customers simply don’t recognize the charge.  If you’ve branded your website something other than your legal name, use the name that appears on your website as your credit card descriptor.
  • Customer Service Some of the reasons customers initiate chargebacks include poor customer service experiences and confusion about purchases. You can prevent some chargebacks by helping customers with any questions or issues they might have, making sure customers understand what they’re buying, and being available to them on time.
  • Return & Refund Policies Make your refund policy visible for website users and make it easy to understand. Provide detailed information on how to return the item and how to request a refund. It can help you prevent chargebacks and avoid negative reviews.
  • Shipping Details If there are any delays, inform the customer immediately and provide an alternative solution if possible. Also, provide shipment tracking information to keep customers updated about where their package is. People are impatient and waiting too long for ordered items may cause a dispute of the transaction.
  • Representment If you are facing a chargeback that you believe to be fraudulent, you can take the case to representment and submit evidence showing that the transaction was legitimate and the cardholder’s claim is false. This won’t prevent the chargeback from going on your record, but will recover some of your lost revenue.

Preventing Chargeback With PurePay

Reduce Your Chargeback RatioDealing with chargebacks can be more than just a hassle. It can slow your growth by involving you into unnecessary engagements. Therefore, prevention is the best cure here!

PurePay can help you decrease and avoid chargebacks. Also, there is never just one way of fixing chargeback problems. But if you find yourself in problems, start finding out what is causing them and close the hole. Reach out to us and we will help you avoid chargebacks.

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