Consumer law is created in order to protect customers whenever they are using their credit cards. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Yes, this is a huge advantage for customers, however, the same thing cannot be said for merchants.
Chragebacks are perfectly legal and every customer has the right to request for one but too much chargebacks against a merchant is bad news for his entire business. This is because fees and fines from banks will pile up and a lot of merchants will lose money. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.
According to the chargeback company, every merchant can avoid this if they know how to limit the number of chargebacks they receive. Yes, it is true that there will always be some customers who would take advantage of chargebacks to gain goods for free, however, merchants can still do something to defend their business against unfair chargebacks.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Provide them with excellent customer service.
According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Keep in mind that the foundation of your business is excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Be clear when it comes to the items your customers are buying.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you make sure that all of your products have a detailed description, you will definitely avoid any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. Teach your employees how to easily detect fraud before they process any purchase.
4. You should implement a secure payment system.
Because online fraudsters are always one step ahead of you, you need to level up your game. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. Make sure that your network systems are secured and that you protect your valued cardholders.