The term “chargeback”
applies to the process that takes place after a customer or buyer refuses to
acknowledge the responsibility for a charge on his or her credit card or does
not admit a credit or debit card purchase. This can be initiated by the issuing
financial institution as a result of a technical concern like no authorization
approval code received. Chargebacks are something every entrepreneur wants to
avert, as they can bring about loss.
·
Did not receive a
product or service purchased.
· Believes the service or product was damaged, defective or not as described.
· Does not recognize the charge or business name on his credit card statement.
· Was a victim of fraud—the credit card was used without consent or permission or even stolen.
Cardholders can
dispute a transaction or deal up to 4 months after item purchase. This kind of
dispute is termed a “chargeback.”
There are lots of logical reasons why
chargebacks occur
There are lots of
logical reasons why chargebacks occur. Some of the most prevalent is when a
customer:
· Believes the service or product was damaged, defective or not as described.
· Does not recognize the charge or business name on his credit card statement.
· Was a victim of fraud—the credit card was used without consent or permission or even stolen.
Ways to Prevent Chargebacks
Even though
chargebacks are costly and unpleasant, they can be averted. The simplest way to
prevent chargebacks is always to cultivate ideal practices or measures at the
point of sale (P.O.S), which are implemented routinely by all personnel. For
instance:
At all times process
a refund to the actual card number.
- Never refund by cash or check.
- If credit is due on multiple transactions process each credit independently.
- Use a reliable A merchant processing company.
- Have an effective chargeback management system.
Defending your Business against Chargebacks
When an issuing bank
reverses a customer’s transaction due to disputing the charge, you need to
effectively challenge the reversal or end up losing the sales proceeds,
including any shipping and delivery expenses, and having a chargeback fee
levied against you (normally between 25 to 50 dollars per chargeback).
For this reason, you
need an effective Chargeback Management system to help you effectively manage
chargeback issues. Your chargeback management system should make use of a
variety of checks for chargeback prevention, chargeback fraud, and chargeback
abuse.
It is also vital for
merchants to have correct and comprehensive data of customer bankcard
transactions.
Why Use a Risk Management Company?
Chargebacks can cost
you a lot of time and money–but it is essential to keep in mind that many
chargebacks can be prevented and, in many cases, it comes down to the
effectiveness of your chargeback management system.
Having an in-house
chargeback prevention team can also be frustrating and costly if you consider
everything involved, like hiring additional employees, added workspace, and
employee training.
Chargeback Expertz is
your solution to the frustration of losses due to chargebacks and the stress of
dealing with the everyday drama of consumer complaints and disputes. Chargeback Expertz inviting you with open
hands call us at +1 855-465-4723 or mail us at app@chargebackexpertz.com.
No comments:
Post a Comment