How To Reduce Chargebacks and Reduce Fraud Losses

Chargebacks are quite irritating for a business. But they are a necessary evil that a company must contend with while partnering up with an online payment provider. They can also be something that can ruin a business operation. Sure, being on receiving chargeback fraud is sure an unfortunate event, but there are also many other ways a business can experience a loss with chargebacks. Chargeback management is vital for businesses that want to survive in the highly competitive market. Here are some ways you can manage and reduce chargebacks.

Establish clear communication with the customer

It will help a business significantly if they open a clean line of communication with their customers. This will prevent a lot of chargeback cases from even occurring. Businesses can even create support lines, either via live chat, call support helpline, or even a support email address. If the customer believes that their problem can be sorted out by directly communicating with the business, they would not even think about communicating with their banking partner. This might seem trivial, but it surely can have a massive impact on a business’s operations.

Ship orders on time

One of the main reasons why customers request chargebacks is because of the delay in their orders. No one likes to wait for more than necessary to get the items that they have ordered. And why should they when there are other competitors ready to provide them with the exact same product and guarantee timely delivery on the side as well? So, if a business is not timely shipping their orders and ensuring that their customers receive the package on time, then this whole thing is on them. Making sure that the order is shipped and delivered on time is something every business that wants to avoid chargebacks must do.

Offer excellent customer service.

Another way a business can reduce its chargebacks is by simply providing a better service to its customers. Ensuring that the customer has all the support they might need is an excellent way for businesses to avoid being hit with chargebacks all the time. A crack customer support team that is highly experienced and answers any customer query in a friendly manner is sure to make the customer’s experience more enjoyable.

The better the customer experience is, the less likely they are to connect with their bank for the chargeback and prefer to communicate with the brand for any issue that may arise.

Select a processor that has a suitable support mechanism

A crucial thing that businesses need to keep in mind while choosing an online payment operator is not just looking at the reliability factor. Sure, that is an extremely important criterion that businesses need to look out for, but the support mechanism that the online payment operator has is equally crucial. An eCommerce business must ensure that they have a partner that can provide them with accessible support and helps manage the stores and the customer’s expectations on the platform.

Maintaining the brand name across transactions.

Surprisingly a common reason why customers make a request for chargeback is due to a mistake. Yes, that is right, due to a different brand name and the transaction name could cause a customer to panic, resulting in them reporting their transaction to their banking operator. This is something that is easily solvable if businesses simply opt to maintain the same brand name across their platform, including transactions. The tip here is to use the trade name for the transaction and eliminate any possibility of the customer being confused about their spending.  

To further protect against these risks, partnering with the best chargeback company can prove invaluable. Such companies specialize in dispute resolution and fraud prevention, ensuring that any chargeback claims are handled efficiently and with minimal impact on your business.

Follow up with the customer.

The first couple of days after a customer receives their order is the most critical. Most of the chargeback requests made because of the defective order or poor quality products take place in the first few days. And this is when they should be targeted by the business as well. By simply connecting them as a follow-up call or an email asking them to explain their experience using the product, the business can ensure that it is them directly that the grieved customer reaches out to for a return or refund and not their banking operator. This will reduce the risk of a company facing a chargeback significantly.

Reducing chargebacks and fraud losses is not at all a complex task if you keep certain things in mind. Just follow this guide and you can reduce the chargeback and fraud losses with ease.

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