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FEW WAYS TO REDUCE CHARGEBACKS AND
REFUNDS
Chargeback’s can make you go out of
business. You will have to pay a large
penalty for every chargeback and too
many chargeback’s against your company
will lead to the termination of the
merchant account. Therefore, you need to
take some steps to reduce chargeback’s
and refunds. Given below are a few.
-
Post Sale Bonus
Rather that giving
everything at a time, a few smart
businessmen set up several free bonuses
that are given to their customers 1 at a
time. This technique works in most cases
as your customers have more to loose
than gain if they file for a chargeback.
This can be set up easily by sending
messages containing the link for their
next bonus.
-
Be open about your 3rd
party account
If you are using a
3rd Party account like CCNow,
2CheckOut or Clickbank then tell your
customers that you do. One drawback of
using 3rd Party account is:
your company’s name does not appear in
the statement of your customer’s credit
card. Therefore, your customer’s should
be aware of this.
This will ensure
that they will not be surprised on
seeing their statement.
-
Be Available
Provide your email
address to your customers so that they
can contact you in case there is a
problem, otherwise they will file for a
chargeback.
-
Give more than what you promised
If you promise
more and deliver less, then, you will
not only have to face many refund
requests, but you will also be taken to
court for breaking the law. Therefore,
at least deliver what you promised.
-
Give a lifetime bonus
You should give
something to your customers which they
will use for a long time. The best
example is an online tool or a member’s
only forum for discussion.
If they request a
refund they know that they will loose
this ebook or the membership, which
makes it more difficult to file for a
chargeback.
-
Keep Records
Keep records of
your customer’s details like when they
bought the product, the credit card
details etc. When the customer files for
a chargeback then you at least have
proof to prove you’re self.
-
Advanced Processes for authorisation
Some processors
require just the expiry date, card
number and name to process the
transaction. However, a few processors
require more information like security
numbers printed on the back of the card,
name, address, etc. All this information
will be checked against the details of
the card holder which will reduce
fraudulent transactions and lessen the
chances of chargeback’s.
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Be Likeable
It sounds
primitive and simple, but this method
still works. If you are helpful and
likeable you will be saving your self
some hassle. When customers post queries
answer them well. Don’t just turn your
back on them when they ask for a refund.
Find out what the problem was and
rectify it or else be ready to face a
chargeback and loose everything from
that transaction. |
