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.