How To Safeguard Your Business Against Credit Card Chargebacks

How To Safeguard Your Business Against Credit Card Chargebacks

When you own a business, accepting payments is a very important process, but protecting those payments from credit card chargebacks is the most important task to run a smooth business. Unfortunately, when allow credit card payments, you are at a higher risk, than cash or debit, for chargebacks. This is why upgrading and improving for chargeback protection is important and shows the health of your business. Learn how to dodge against chargeback’s proactively and help your business grow safely and smoothly.
 

How to Safeguard Against Chargeback’s

You may not be able to stop a customer from filing a dispute against you, but you apply policies and practices within your business to protect yourself as much as possible. Here are the four main ways you can safeguard against chargebacks:
 

  • Record Your Transactions(Even Its A Small One)
  • Have Unusual Customer Service
  • Apply Chargeback Protection Solutions
  • Honour Disputes

 
Record your transactions(Even Its A Small One)
 
A record of transactions is evidence the customer has purchased the product. If you have proper documentation, you can provide proof that your customer allowed the credit card payment. This can be in paper and/or electronic receipts and files form.
 
Recording your transactions is advantageous in two ways. One, sometimes a receipt or evidence of transaction is all the customer needs to take back their chargeback. Remember, not all chargebacks are friendly, it could be that the customer just slipped about the charge. Two, if you decide to fight the dispute, you have the proof you need to show while the bank asks for that.
 
Have Unusual  customer service
 

Often, customers will come to the company to try to understand or dispute the charge before reaching out to their bank or credit card. If you have exceptional customer service, you may be able to prevent the chargeback from happening and save the fees you are going to pay.  This behavior may initiate from the customers after your amazing staff behavior, etc.

 

 

Install a chat feature on your website so customers can easily and quickly contact a customer service person. Make sure you have a working customer service phone number available 24/7 if possible. If you have an email address, respond to customers within 24 hours of their message or sooner, this activeness will ultimately help you to grow.

 
Apply chargeback protection solutions
 
If you can’t stop a chargeback, implement solutions to manage chargebacks when they occur. One easy way to do this is to work with a payment processor who will work with the solutions to manage them for you.
 
Chargeback management solutions are:
 

  • Keeping all of your data on a single page to allow for efficiency
  • Enabling real-time merchant alerts starting from the first dispute
  • Reporting in real-time so you can take proactive measures

 
There are a lot of proven techniques to manage chargebacks. Instead of spending your time learning all of them, let a merchant account apply them for you.
 
Honor disputes
 
When you cannot prevent the dispute, honor it. It is likely more money and works to fight a dispute than it is to honor it. So, develop a workstation for dealing with chargebacks. Focus on preventing it first. Then, put the proper policies in right place to manage chargebacks when they come and they will occur. Don’t panic when you get your first chargeback. If you’ve put together plans to protect against chargebacks, you’ll know exactly how to manage it. And when all else fails, honor the dispute.
 
Chargebacks are nothing new to the business world, and they aren’t going away anytime soon. Take a proactive approach to protect your business from the effects of credit card chargebacks by working with a high-risk payment processor, keeping careful records, and honoring disputes when it is a must. If you take these 3steps, you won’t be spending your time worrying and thinking about chargebacks and can focus on growing and scaling your business instead.
 

 

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Why chargebacks Are Risky?

 
Protecting against chargebacks can’t be pocket-friendly.
 
If you run a company that is continuously having to refund customers for your good or your service, how are you going to earn? In fact, according to a study by LexisNexis, chargeback’s cost merchants in the United States over 1.32% of revenue in 2016. That’s why chargeback protection is an essential part of your business plan —you will thank us later.
 
They make your business unstable and risky.
 
Chargebacks are known as risks for all entrepreneurs. Not only are merchants aware of this, but banks are too, and banks do not want to take on financially risky businesses. Some industries are more unguarded to chargebacks than others, due to the nature of the industry.
 
Among many others, examples of highly riskier industries are:
 

  • Downloadable Software
  • Electronics
  • CBD dealers
  • Cigars & Smoking Accessories
  • Furniture
  • Antiques & Collectibles
  • MLM & Direct Sales
  • Penny Auctions
  • Debt Consolidation
  • Tech Support

 
Businesses that are considered high risk due to chargebacks and other factors are often contradicted by banks and standard payment processors. So, when high-risk industry businesses are looking for merchant accounts, they must turn to high-risk payment processors. Luckily, there are reputable high-risk payment processors who will welcome them with wide arms and take on high-risk industries.
 

Payment Guru

Payment Guru a perfect platform chosen by many merchants to date. We provide a huge platform for high-risk business owners with safe and secure payment processors, covering majorly all of the industries which are been neglected by the other merchant account provider. We also handle chargeback’s related problems very confidently and smartly.