Knowing how to reduce the chargeback ratios for your company is an important thing as credit chargebacks are a liability to your business. The list below shows how the merchants can reduce the chargeback ratios:
Checking the expiration date and entering the security code
checking the expiration date is essential for subscriptions cased transactions. For instance, when your billing is in a month’s time and automatic payments are supposed to be made for the services through credit cards. If the expiry date comes sooner than the billing period then the business is in jeopardy. Entering the security codes is essential to verify that the card user is the rightful owner as there are cases where the cards are used without the owner’s consent.
Ensure that credit cards that are being used have not been stolen
The three-dimension security measures that are put in place help in verifying the user credentials in different layers of security to make sure that the card in use was not stolen from somewhere else. Stolen cards transactions are prone to legal sues due to ambiguous laws.
Making sure your services are valuable to your customers
Making sure that your services are well outlined to the customers and clearly indicating what they should expect when they make a purchase in your business is a good idea and the customers would know each and every responsibility involving the transaction parties.
Avoid accepting expired credit cards
The merchants should avoid accepting expired credit cards regardless of the event, even if it is for trial purposes.
Get your customers authorization in writing
Get your customer to sign for every purchase made. This helps to shift the liability to the customer in case of legal sues. Signatures prove that the card owner authorized the use of the card in making purchases and subscriptions.
Learn to detect warning signs of fraud
Learning to detect fraud warning signs is probably a good measure. Warning signs of fraud are like repeatedly missing on the password or unmatching details being provided in account of the credit card. Other cases may be of using an expired credit card for payments. These are but a few scenarios of warning signs of fraud.
Train your employees
Training your employees is another method of chargeback security measures. Employees should be trained on the scenarios that might occur to cause chargebacks. The employee’s experience is an additional advantage to the merchants.
Keeping accurate records
Keeping accurate records may help in reference when called upon to and incase there is any legal sue in pursuit. This may help in fighting back cases. A good advice is to only fight back cases that you think you can win or there might be extra charges when you loose.
Learn and follow processor protocol
Learning to follow processor protocols is a better way to prevent chargebacks as the processor helps in secure and efficient transactions.
Respond to all customer service issues promptly and efficiently
Responding to all customer services issues might help in solving problems at the point of sight. What do they say? The early bird catches the worm.
