What can a business do to prevent chargebacks?

The best chargeback management process starts with prevention. Businesses can prevent chargebacks by looking at how they market to and communicate with customers. Some strategies include:

Include your branding on statement charges

Some customers file chargebacks when they don’t recognize a company’s name on their bank statements. Keep things clear and make it easier for cardholders to recognize their purchases by using the company’s branding identifiers (web address, product line, etc.) as the descriptor. If the company descriptor varies, ensure customers know what name to expect on their credit card bills.

Keep product descriptions and photos updated

Customers want to be sure they’re getting exactly what they want when they place an order online. Ensure that online descriptions are comprehensive and include details like dimensions, material, color, and any defects or damage. Accompany these descriptions with several high-quality photos of the products, taken from different angles, so customers can’t file chargebacks claiming the item received doesn’t match the item advertised online.

Make returns and exchanges easy

If customers are dissatisfied with a purchase and don’t feel they can come to a resolution with a business, they may seek out forced refunds in the form of chargebacks. But flexible return, refund and exchange policies encourage clients to work out their concerns directly with the business, saving on costly chargeback fees and penalties.

Refunds also give customers a faster return of funds to their account and a better chance of recouping more of the purchase price. As a result, customers may be more willing to work with a business to arrange refunds – if the customer is aware of the business’s easy return process.

Deliver stand-out customer service

Sometimes, frustrated customers just want to be heard. And if the business is known for providing exceptional service and treating customers fairly, customers are often more inclined to contact them directly to resolve an issue rather than heading straight to the issuing bank to file a chargeback.

ClearSale Offers End-to-End Chargeback Services With ChargebackOps Acquisition

Digital Wallet Chargeback Policies Have Changed: What You Need to Know

How Merchants Can Reduce Chargeback Risks for Virtual Items

Advance Strategies to Eliminate Ecommerce Chargebacks

What Merchants Should Know for Successful Chargeback Reversals

5 Ways to Protect Your Business From PayPal Chargeback Fraud

Why Low Marginal Costs Don’t Eliminate the Risk From Chargebacks

Is Your Chargeback Rate Accurate?

Evidence You’ll Need to Dispute a Chargeback

What Is the Visa Chargeback Monitoring Program?

The Ultimate Guide to Debit Card Chargebacks

How Retailers Can Prevent & Fight Debit Card Chargebacks