In many businesses, merchants tend to think that chargebacks costs are not in anyway avoidable. The truth is that this is a cost that can be greatly reduced when properly checked to up to 40%. Much of the filed chargebacks, with the correct strategy, can be disputed all help you to overcome this cost effectively. An effective management strategy can be of importance to the merchants interested in reducing or disputing the entire chargeback cost. It’s imperative that merchants are dedicated to taking actions that will lead to a reduction of the overall cost.
For a successful business, the business ladies and men will have to look for better ways of lowering this cost that significantly lower their profits. It does not take a genius to determine that the better the prevention plan and strategies to reduce chargebacks , the more the gains reached. Moreover, much time and energy is saved from the tedious disputes solving process. In 2018 having a commendable preparedness in such sectors will have you pocket more profits than you have before. Here are some practices you can employ and elevate your sales profits.
Determine the actual cause of chargebacks
While illegitimate products may be a significant cause of a chargeback, some other significant reasons should be determined. Some other triggers may be, first, criminal fraud. This happens where an unauthorised person gains access to the credit card and makes transactions with it. Such deception is less easily preventable although measures like counter-checking the other documents can be employed to reduce it. Secondly, another cause could be faulty business practices due to the merchant error. Such errors include processing and misreading errors. To deal with this one as a merchant you need a thorough and unbiased policy and business policies. Such action will significantly reduce errors.
Ways of reducing chargebacks
One easy-to-use method of lowering chargebacks is the use of a fraud detection tool. This will help to ensure that small tricks and errors are detected the moment the machines are used. Some of the fraud detection tools include 3D secure AVS and card Security Codes. Another way will be reducing friction that regards payment. By so doing, you will have created positivity in the merchandise or commodity buyers mind. On the contrary, if you have arguments about the cost, there is the likelihood of the transaction being disputed.
Unsure there is communication
Communication between the client and the seller is vital. Ensure there are clear regulations and that the charges and rates are well communicated. This will ensure that the customer has full information about the product and the seller. It is also evident that through communication there are visible indicators of fraud in the customer’s way of communication. Some customers may not be confident enough to ask questions one on one, and therefore, the presence of a communication platform offers a question and response discussion, failure to this may lead to dissatisfaction of the client.
Of course, there are more other ways to prevent this unfortunate charge. Other tactics may be used if the major ones that have been pointed out don’t appropriately. Again, you may wish to implement other tactics with time for a perfect prevention strategy.