10 Ways to Prevent Chargebacks
June 21, 2023
Chargeback prevention for merchants is essential for eCommerce companies. If you are looking for strategies to prevent credit card chargebacks, this article provides helpful steps to help. And if you don’t already know, you’ll need to understand how to get approved for a high risk merchant account quickly and easily.
What is a Chargeback?
Chargebacks are also known as credit card charge reversals. A chargeback is an alternative for customers to receive their money back in the case that they find fraudulent transactions on their credit card statements.
Banks have a special interest (because of their particular commission) in pursuing chargeback claims. So, many dishonest customers misuse this procedure, which causes a growing number of unwarranted chargebacks. The more high risk merchant account chargeback claims you have against you, the more payment processing companies will avoid your business all together.
Therefore, it’s no surprise that retailers with high risk merchant accounts are currently going above and beyond to stop chargebacks as much as possible. The demand for businesses to take measures to protect against chargebacks is becoming more and more prominent every year. All retailers with high risk merchant accounts need to learn how chargeback claims can be handled and how to successfully protect their businesses from fraudulent chargebacks.
What About a High Risk Merchant Account?
When it comes to credit card payment processing, you might have difficulty getting approved for a high risk merchant account due to of any number of factors that categorize businesses as high risk, such as: fraud, bad credit, or a high ratio of chargebacks.
The best high risk merchant account providers will have top-of-the-line security and a proven track record of keeping business and customer information safe and secure, as well as having a system in place to help mitigate a high ratio of chargebacks.
Choosing the most reliable high risk merchant account from a reputable high risk payment processor, like PayKings, is critical to your business’s longevity and long-term success. Retailers that are categorized as high risk merchants need to be aware of the hurdles they might face on their journey to securing a payment processing company.
PayKings specializes in the risk industry and understands all the ins and outs connected with businesses of this type.We know how to handle credit card payment processing for virtually any business model and offers options for chargeback protection.
How High Risk Merchants Can Prevent Credit Card Chargebacks
It is true that chargebacks can cause problems for your industry as a whole. But with the right combination of chargeback prevention, high-quality customer service, and solid business practices, you can successfully battle and mitigate chargebacks.
1. Billing and Refund Policies: Provide your clients with explanations in billing and refund policies. Keep a copy that your customers can sign stating that they’ve read and understood the policies.
2. Services Description: Provide customers with full and clear descriptions of services rendered and products purchased.
3. Your Company Name: Your business name on the credit card billing invoice must match the name of your company.
4. Contact Details: Provide a contact number that allows clients to get in touch with you directly.
5. Tricky Situations: If there’s a situation, your customers should know about it right away. As a result, they will not hurry to get their money returned through a chargeback.
6. Payment Processors Can Prevent Chargebacks: Switch to an expert payment processing company that can help you fight chargebacks.
7. Records of Your Interactions With Customers: Records of your interactions with customers will allow you to solve fraudulent disputes.
8. Dealing With Clients: Don’t avoid working with your customer base. In this way, you can resolve disputes before chargebacks happen.
9. Retrieval Requests: In the event the customer’s bank issues a retrieval request, you should always react.
10. Quality of Your Services: Beyond any doubt, always ensure the quality of your products or services rendered so that your customers won’t even consider a chargeback.
June 21, 2023 | High Risk Merchant Account | Dustin