The law that protects customers whenever they purchase items using their credit cards is known as consumer law. In the event that someone steals their credit card details and the merchant refuses to give them a refund, they can get in touch with their credit card company in order to receive the refund they deserve. Even though this is good news for the customers, the same thing cannot be said for the merchants.
Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. In addition to this, the bank can even terminate the merchant’s account which will eventually lead to the downfall of his business. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.
According to the chargeback company, merchants can prevent this from happening by simply controlling the number of chargebacks they receive. Yes, it is true that there will always be some customers who would take advantage of chargebacks to gain goods for free, however, merchants can still do something to defend their business against unfair chargebacks.
Listed below are some effective ways on how to defend your business against unfair chargebacks.
1. Your business must have an excellent customer service.
According to the chargeback company, merchants can easily prevent chargebacks by simply offering superlative customer service. Don’t forget that the foundation of your business is none other than excellent customer service. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. Training your customer service team so that they can easily handle difficult customers is also a good idea.
2. Make sure that your description for your items are clear.
According to the chargeback company, by simply providing our customers with a good product description, we can cut down the number of chargebacks we receive. If you have a detailed description for every product that you are selling, there won’t be room for any misunderstandings.
3. When it comes to fraud, you have to be very vigilant.
According to the chargeback company, by simply being vigilant on fraud, merchants can easily prevent chargebacks. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.
4. You should implement a secure payment system.
It is a fact that online fraudsters are usually one step ahead of the merchants, because of this, we must do something to keep up with them. According to the chargeback company, we can do this by simply implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.