Unfortunately, chargebacks are a part of online shopping. According to Chargebacks911, the average charge per chargeback will be $191 by 2023. This is a worrying statistic for small and medium-sized businesses who don’t have the resources to handle them.
Although it can be hard to combat chargebacks, there are some things ecommerce business owners could do to reduce the chance of them being charged back. We offer practical steps that online businesses can follow to avoid chargebacks.
Present & Service Proactivity
Merchants should be clear about what customers can expect from the product, and how they will receive it. This will make it less likely that they will be unhappy with the outcome or the time it takes. These are just a few ways that businesses can prevent chargebacks.
1. Description of products in great detail and honesty
Each product should be described exactly as it arrives. Upload clear images and write descriptions that include important information like dimensions, compatibilities/incompatibilities, weight, color, and more. Customers will be less likely to feel that the product they received wasn’t as described online if it is presented accurately.
2. Before placing an order, ensure that the return/refund policy can be easily found.
Customers will feel more confident purchasing if they are familiar with the rules and procedures before placing an order. If they need to return the product, they will know how to do it.
3. Offer exceptional customer service
It is important to make contact information easy to find. Customers may be more open to talking to someone live and explaining their problem before resorting to a chargeback. Pay attention to the customer’s demeanor if they are asking for an exception from clearly stated refund policies. Sometimes it is worth issuing a refund anyway to avoid the hassle of a chargeback later.
4. You don’t have to charge until your items are shipped
Send follow-up emails at every stage of your order. It is a great way to ensure that customers are informed about the status of their order. Customers will be less likely to dispute a transaction for not receiving goods if they are able to see where their order is, and are not charged for it too soon.
5. Refunds should be issued promptly and kept track of all returns
Customers are concerned about returning products to online stores and not receiving their money back. This is a major problem. This fear can be alleviated by keeping customers updated throughout the return process and making these transactions a priority for you to ensure that customers get their money back as quickly as possible.
6. International orders: List the shipping costs and adjusted price clearly
International orders can be a great way for businesses to grow, but they can also pose a risk. Customers who don’t see their local currency may be confused as to what they are paying. They might file a chargeback if the bill doesn’t match. To avoid confusion, clearly list the location of your business, the local currency and any export/shipping restrictions.
Watch out for unusual activity and monitor orders
It can be more difficult to be proactive than vigilant. Businesses that are vigilant keep an eye on their orders to avoid chargebacks. Although many payment processors are very adept at detecting fraud and businesses can add an additional layer of protection by ensuring that each purchase appears legitimate before they fulfill an order. These are some ways that businesses can monitor fraudulent orders.
1. Check if the IP address is located at the same address as the order IP
NordVPN is a third-party service that allows you to verify the IP address of any order. If the location is not mentioned, it could be that the person used an anonymous proxy or open proxy to place the order. You may also want to double-check if the area code on the phone number does not match that associated with the IP.
2. Examine the domain name as well as your email address
You should try to navigate to the domain if you don’t know the address. If the domain does not resolve to a site, you can look it up on WHO.IS. This will show the date it was registered and the contact information. You can check if the address is in a first/last name format to verify that it matches the order number and card.
3. Double-check all addresses
Is the billing address for the suspicious order the exact same as the shipping adres? If they aren’t, how far is the shipping and billing addresses from each other? Is the billing address in the same city/state as the IP address? You may have a fraudulent order if anything seems suspicious.
4. You should look for multiple accounts
If you feel the order is suspicious, check your system to see if it has the same email address. Is the customer’s account information compatible with any existing accounts? You might want to look at the order as well as any other accounts that the customer may have.
5. For billing issues, monitor your system
Even the most reliable billing systems sometimes have glitches or outages. Be sure to keep track of any problems your payment provider might be having. You can quickly identify an accidental double-charge and issue a refund to the customer. This will make it less likely that they will try to resolve the problem through their bank.
6. Be on the lookout for unusual activities
Sometimes the very nature of an order can be enough to indicate fraud. Be on the lookout for unusual attributes such as:
Shoppers placing large orders without preference for size, color, make, or model of goods/servicesUnusually high transaction amountsExisting shoppers who suddenly order a substantial volume of goods/servicesSingle customers that provide more than one card to cover an order or set of ordersShoppers that order more than once in a given dayMultiple transaction attempts with a failure at the first attempt
These transactions can be legitimate, but they could also be fraudulent. This behavior can be prevented by being vigilant and asking for CVC codes.
You may not be able stop chargebacks from happening on your site. Ecommerce businesses can reduce the chance of chargebacks by being proactive and vigilant and focusing on growth.
By: Volusion Staff
Title: 12 Ways to Prevent Chargebacks on Your Ecommerce Store
Sourced From: www.volusion.com/blog/how-to-prevent-chargebacks/
Published Date: Mon, 07 Mar 2022 16:05:00 GMT
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