Chargebacks are issued due to consumer complaints about fraudulent transactions involving their cards. Although the concept was originally developed to aid in protecting customers from faulty purchases, it also helps them recover the stolen money.
Always initiate such a transaction by consulting the credit card company or the bank. A reversal is made if there is proof that the item purchased is faulty or the product advertisement was a scam. Chargeback fraud protection for merchants tips include.
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Implement Fraud Prevention And Detection Tools
Multiple orders, a short-time purchase that fails, or an unusually large purchase are indicators of fraud. When an anomalous purchase is detected, including but not limited to a purchase requiring you to ship items abroad, alerts have to be raised. These techniques facilitate the identification and prevention of such fraudulent transactions.
When implemented, a follow-up through the proper channels will result in chargebacks. Integrate device fingerprinting techniques to help in the detection of suspicious behavior patterns. This will aid in flagging individuals with such a history, whether they are in incognito mode or not.
Provide Detailed Information To Your Customers
This involves providing descriptions and exact images of the products you sell online. Include the contact information and a policy on how to dispute credit card chargebacks once they happen. This enables the consumer to contact them if they have issues concerning chargeback requests.
Once there are unclear charges on the credit card, such requests are bound to occur. Listing your first name and providing a proper description of all transactions is one step to preventing confusion of any kind.
Log As Much Transaction Data As Possible
Monitoring transactions in real-time is hard at times. Logging the data when a transaction is made is helpful as it may be helpful at a later date. Handling chargebacks, therefore, becomes easy as evidence of such transactions is easy to come by with the help of transaction data.
Have a plan to ensure clear labeling of everything in organized spreadsheets. Incorporate software management with data exploration as well as reporting attributes. Integrate the ones that have prebuilt templates to facilitate disputing the claims.
Educate Your Team
Make it a habit of ensuring each individual involved in sales is aware of the challenges involved and ways of reducing chargebacks. Equip them with facilities and knowledge to help them understand and come up with solutions.
Ensure your company implements proactive measures to enable consumers to raise concerns before initiating a chargeback. Train the employees to detect suspicious patterns and red flags and the usage of tools to detect high-risk transactions.
Confirm User’s Online Presence
A customer profile has to be legitimate when deciding on whether the chargeback is legit or just a mere fraud. There are several ways of checking the legitimacy of an online user other than the online platform tool approach. Here is how such methods work:
- Advocate for the usage of the email address or phone number during onboarding or when registering
- The lookup tool will find profiles that are registered under the same phone number or email. This usually happens behind the scenes and in real-time.
- A profile picture, bio, and confirmation are sent if the data has been used in the previous use.
Merchants dealing with payments involving credit cards at one point in the lifespan of their business will have to be prepared to deal with chargebacks. Applying the above tips in the day-to-day running of the business saves money and quality time.
Due to the prevalent nature of such occurrences in an eCommerce business establishment, a business has to battle the chargebacks.