Owning a business can be frustrating, especially when it comes to chargebacks. Chargebacks are those pesky transaction reversals that sometimes occur after a customer has received a product or service. The following are some ideas that you can use to reduce the number of chargebacks you have to deal with in your business.
Get Written Transaction Acknowledgment
The first step to take in the area of chargeback prevention is to ensure that you get written authorization for any service or product purchase. Have your potential customers sign for their purchases. Don’t fret if you’re an online seller. You can still have your clients sign for their purchase digitally. Once you do that, you’ll have legal protection against chargebacks. The same people who signed for the purchase cannot attempt to charge the purchase back without being subject to legal actions for what they have done. You should practice capturing signatures for every purchase someone makes on your website or in your physical store.
Verify All Your Clients
It’s also important for you to verify all your clients to prevent chargebacks. You can install applications or use AI tools to verify their addresses, their identities, or their phone numbers before you allow such people to purchase your products and services. Another thing you can do is ensure that they enter the security codes on the credit cards before you accept transactions. There’s much less of a chance that someone can pull off a chargeback if that individual has to enter the three-digit code on the back of the card to complete a purchase. Ensuring that you have reliable software on your site is the best defense for preventing chargebacks and fraud.
Hire a Third-Party Company to Help
You can also hire a third-party provider that offers an array of chargeback solutions. These companies can act as a middleman between the merchants and the card issuer companies. A reliable provider might be able to have chargebacks stopped before they even begin. However, you will have to sign up with one of these companies to receive this type of protection from them. You may have to pay a monthly or annual fee to get the protection you need to avoid chargebacks. It will be well worth it, in the end, to do so.
Watch For Multiple Transactions
Watch out for multiple transactions from the same user. An option is available for you to purchase software that will limit the number of charges a person can put on one card. That might help to cut down some of the instances of chargeback fraud. You can also limit the amount that one can spend using the card. Look into software that can help you control these aspects of the transactions other people have on your site. You’ll have the ability to protect your assets more if you implement these practices.
There are many other ways you can prevent chargebacks from occurring. These were just a few ideas. Try some of them and see if your instances of chargeback lower in time.