HOW TO REDUCE ADULT CHARGEBACK’S?

A Chargeback is filed by customer against any merchant where his credit card was charged. When the chargeback is approved by the customer’s issuing bank, the merchant has to return the complete transaction amount, pay a chargeback fee to the bank and in most cases, the merchant will not get back his merchandise and the chargeback had occurred due to credit card fraud. Due to this, chargeback’s and refunds are any merchant’s worst nightmare.

There are several reasons for returns and chargeback’s, the most common being credit card fraud. Even if the merchant proves that it was not his fault and the chargeback application is not approved, the account provider will not be happy. This is because, considerable amount of time has to spent for such cases. Also, credit card holders look into their statements only at the end of the month which makes it even more difficult to trace the fraudulent transaction. The ecommerce merchants will have to search through a pile of documents that takes up too much time.

If you don’t take steps to reduce chargeback’s then one fine day you will have to shut down your business and sit at home because chargeback’s eat into your business profits.

Given below are some tips which will help you reduce the number of returns and chargeback’s that are filed against you.

• If you think that your business will get a high number of chargeback’s then obtain a high risk merchant account as it will at least protect you from getting the TMF status.
• Disable the automated transaction facility, which does not need manual verification, of your merchant account. This is one of the most effective ways of preventing fraud. You need to verify each order by contacting each customer.
• Having good knowledge about how internet credit card processing works. You can read articles, forums and news that are dedicated to electronic commerce.
• Using secondary security systems created by MasterCard and Visa.
• Making sure that you are working with a good ecommerce provider ensures security, stability and high quality processing facility. Support is vital because all good service providers will help their ecommerce merchants to fight back against fraudulent transactions, chargeback cases and returns.
• One of main reasons for chargeback’s to occur is: Bugs in the shopping cart application. If you are using a free version, then it is advisable to integrate a paid version of any shopping cart application that you feel is good. Paid shopping carts will provide you with an extensive set of settings with which you can control every aspect of the application and prevent errors and bugs during the transaction and communication with the payment gateway. It ensures a flawless, stable and protected functionality.

Always work will decent credit card processors who are willing to help their merchants in reducing returns, chargeback’s and any other problems. Therefore, you need to compare the services of different service providers and then, choose a service provider by paying attention to post sales guarantees and services. 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.