Protect Your Business And Do Something About Unfair Chargebacks
Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Although this benefits 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 the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even close the merchant’s account which will eventually shut down his business. This is a major problem for merchants considering the fact that they cannot apply for 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. Even though it is a fact that there are some customers out there that are taking advantage of chargebacks just to gain goods for free, this doesn’t mean that merchants cannot protect their business against these unfair chargebacks.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Make sure your business provides excellent customer service.
According to the chargeback company, if the merchant offers superlative customer service, he can easily reduce the number of chargebacks against him. Remember that excellent customer service should be the foundation of your business. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you provide them with a detailed product description, there will be very little scope for 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.
It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, merchants will avoid chargebacks if they decide to implement a secure payment system. See to it that your network systems are secured so that your customers are also protected.
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