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
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
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
high risk merchant account or
offshore merchant account for a
high risk merchant.