10 Merchant Errors that Cause Chargebacks & How to Avoid Them

10 Merchant Errors that Cause Chargebacks & How to Avoid Them

2Checkout Guest Feature by Chargebacks911® Strategic Partnerships Director Harlan Hutson

With more than a decade of expertise in payments and security, Harlan Hutson is one of the most knowledgeable figures in the global payments ecosystem. In a new guest feature for 2Checkout, Harlan lists out ten common errors that lead to chargebacks, and explains how merchants can protect their businesses against them.

2Checkout is a leading, all-in-one monetization platform provider. They allow businesses to simplify the back-end complexities created by modern digital commerce to quickly expand internationally and optimize recurring revenue streams across channels. Their blog is a widely read resource for merchants looking to optimize operations.

It’s common to think of chargeback sources as being divided into rigid categories. But, as Harlan explains, chargeback triggers exist on a spectrum, with many chargeback sources being preventable. “You could be dealing with totally-preventable merchant abuse on one extreme, and totally-unpreventable deliberate chargeback abuse on the other,” he says. “In the middle, there is a wide expanse of chargebacks that may be prevented with the right approach.”

Anything from unclear return policies to missteps in customer service or fulfillment could play a part. Only once merchants have addressed every potential chargeback trigger in their operations will they truly be optimized to prevent disputes.

“Every merchant has to deal with a determined fraudster or an irate customer from time to time. That said, there’s no reason to accept chargebacks that could easily be prevented by taking simple steps on your part.”