What Research About Services Can Teach You

Protect Your Business And Do Something About Unfair Chargebacks

The law that protects customers whenever they purchase items using their credit cards is known as consumer law. 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. Even though this is good news for the customers, the same thing cannot be said for the 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 fees and fines from banks will pile up and a lot of merchants will lose money. 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, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Although there will always be customers that would take advantage of chargebacks just to gain free items, this doesn’t mean that merchants should just take this abuse.

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

1. Your business must have an excellent customer service.

According to the chargeback company, merchants can easily prevent chargebacks by simply offering 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. Be clear when it comes to the items your customers are buying.

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. You have to be vigilant when it comes to fraud.

According to the chargeback company, you can easily avoid chargebacks by simply, being vigilant to fraudulent activities. Teach your employees how to easily detect fraud before they process any purchase.

4. You need a secure payment system.

Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.