OFFSHORE CREDIT CARD CHARGEBACK

In a business environment, the word chargeback is the most feared word by merchants. When a particular transaction gets reversed, it is known as a chargeback. It simply means that a chargeback deducts money from the account rather than adding to the account. There are several reasons why a chargeback can occur. It could be because of customer disputes, bank error, expiration of credit card and double-charging. If there are several chargebacks against a merchant, there are possibilities that one could loose their merchant account. Once a trader looses a merchant account, his/her name is listed in a MATCH list of the Visa/MasterCard for many years. This list can be accessed by all account providers. If the providers find a merchant’s name on this list, they do not reissue another merchant account to the trader.

Following are a few tips that will help a trader reduce chargebacks:

-      On the page where the order confirmation exists, company details such name, e-mail address, phone number, etc. should be provided to the customer. This helps the customer recognize these details when they appear on the monthly statement of the credit card.

-      These details of the company should also be included in the confirmation e-mail which is sent to the customer when they place an order.

-      It is also advisable to use the service “Address Verification”. All those who order products with the help of a stolen credit-card number won’t use the billing address of the real card holder. By using the Address Verification, a merchant has a chance to prevent an order form being sent.

-      It is always better to scrutinize orders which come from overseas. A high percentage of false online purchases come from countries such as Russia, Indonesia, and other developing nations.

-      If the order appears suspicious, then send an e-mail or make a call to the purchaser in order to verify the details. Follow up if certain orders seem strange.

-      It is advisable to include the customer’s invoice if an order is being shipped. Copies of the customer invoices must be kept is that is ever a challenge is imposed, the merchant has something to defend himself.

-      Care must be taken before orders are accepted from all those who use free e-mail addresses while placing orders. This is because it is next to impossible to track the users of free e-mail addresses. It is always easier to people to get away when an e-mail address of an Internet Service Provider is used.

-      It is better to request for the three digit security code of the credit card (CVC or CVV) which is present at the reverse side of a credit card.

-      If the business requires delivering orders, it is advisable to use carriers which require a signature after the delivery is done. Also, these copies must be kept for the records.

-      Warning messages must be posted in the order page so that fraudulent order attempters are kept at bay.

The above listed measures help in reducing the credit card chargebacks.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.