Simple Steps to Reduce Chargebacks
What is a Chargeback?
Simply put, a chargeback is a reverse transaction. Instead of money coming into your account, money is actually withdrawn from your account. In addition to the money being withdrawn from your account, you will also incur a chargeback fee from the consumer’s credit card company. Below are a few simple tips that can help you avoid chargebacks and the fees associated with them. Avoiding chargebacks is important as too many could result in the suspension of your processing account.
Tips to avoid Chargebacks
Below are some tips that you can use to avoid chargebacks and the aggravations that they cause for both you and the customer.
Card Present Transaction
- Always verify your customer’s identity. If a signature is not present on the card ask to see an id.
- Verify the expiration date on the card and check for the security hologram.
- Match the name and account number on receipt with the information on the customer’s credit card.
Card Not Present Transactions
- Ask the customer for the credit cards expiration date.
- Verify the 3 digit card security code (CSC) or as it is sometimes referred to as card verification data (CVD).
- Use the address verification system to verify the customer’s address on the order form matches the cards billing address. Not using the AVS system will always result in higher processing fees.
Customer Disputes
Be sure to deal with customer disputes promptly and issue refunds quickly when necessary.Author
