Credit card chargebacks and debit card chargebacks are common for merchants worldwide. A chargeback occurs when a customer reverses payment for an item or service purchased. The service protects consumers from any unauthorized charges on their cards.
What is a Chargeback Alert?
Have you ever purchased an item and it arrived damaged? In such cases, you may want to dispute the purchase, and the seller will receive a chargeback alert. So what is a chargeback alert? This is the alert received by the merchant that funds have been reversed. The merchant usually incurs a fee whenever a chargeback alert is made.
Some other common causes of chargebacks include:
- Invalid or expired card
- Unauthorized transactions
- Cardholder disputes
- Recurring canceled payments
- If the transaction data is not received
- If the product or service is not received
In order to stop chargebacks, continue reading to discover five simple tips you can implement.
1. Have a Clear Return Policy
A clear return policy will save you the time and money used to resolve purchase disputes. Be sure to state policy options so that customers are fully aware of how it works.
2. Always Deliver Goods as Advertised
Always deliver goods and services exactly as advertised. Include detailed and precise descriptions of the product to prevent any chargebacks for items not as described.
3. Provide Correct Direct Contact Information
Providing 24/7 customer service to customers will make it easy for them to reach you before thinking of filing a dispute. This will help solve any arising issues quickly and efficiently before any charges are incurred.
4. Provide Accurate Shipping Details
If you’ve ever ordered anything online, you’re familiar with the intense, eager feeling one has before receiving the item. To stop chargebacks from customers, be sure to inform them immediately the order is confirmed and how long it will take to ship the item.
You can also provide them with tracking information that will help them track its current location and when it’s expected to arrive.
5. Keep Detailed Records of your Orders and Sales
Keeping detailed records will save you from any transaction disputes that may arise. This will help you detect any errors and stop chargebacks.
It’s also important for sellers to train their staff well on best practices to solve any credit card issues that may arise. Double-checking all manual inputs to verify signatures will help prevent any chargebacks or fraud cases.
If you want to save your business from any chargebacks alerts, develop a strategy to prevent payment reversals and ensure that all your records are updated. Following the tips mentioned above will also help avoid any cases of chargebacks.