Why Fight Chargebacks When You Can Prevent Them?
Your products may be great, your customer service may be outstanding...but every business that accepts credit cards is vulnerable to chargebacks. And if recent history is any indication, there’s a very good chance that the chargebacks you receive will be fraudulent.
By challenging illegitimate chargebacks through representment, merchants can regain part of the revenue they lost. Even then, however, chargebacks carry a high price tag:
What are Chargebacks REALLY Costing You?
Annual Revenue Lost:
+ Chargeback Fees:
+ Admin Fees:
+ Cost of Goods & Shipping:
Total Annual Chargeback Cost:
You Cannot Prevent Chargebacks by Trusting Reason Codes
To prevent chargebacks, you must address them at the source--and you won't find that in the reason code. You can trace any chargeback to 1 of 3 causes, and each requires a unique prevention technique. To be successful, you must deploy the right tools and expertise at the right time to address each specific source:
Prevent Chargebacks from Merchant Errors
Analyze policies and address procedural missteps; Establish best practices, boost quality control.
Prevent Chargebacks from Criminal Fraud
Check AVS, ask for the CVV, create blacklists, use VAU, fine-tune fraud filters.
Prevent Chargebacks from Friendly Fraud
Verify customer info, track shipping and get confirmation, over-communicate with customers.
Chargebacks911 is the only service provider on the market today capable of identifying chargeback sources.
Move from Defense to Offense
Stopping chargebacks before they happen saves you time, money, and hassle ... but where do you start? Our team of experts has put together a high-level view of effective chargeback prevention tactics that can move you from defense to offense.
Use the Tools That Are Available
Make the most of validation tools such as Address Verification Service (AVS), card security codes (CVV2, CVC2, etc.) and 3D Secure.
Improve Customer Service
The more communication channels you have available, the better... but only if you respond. Answer phones quickly, reply to emails and chat requests, track social media.
Reduce Merchant Error
One of the best ways to reduce risk is to adhere to business best practices. Follow payment networks' rules and regulations. Obtain unbiased analytics on your business.
Manage Recurring Payments
Clear communication upfront can prevent problems down the line. Clarify terms of service and rate changes. Make cancellations easy, and fulfill requests promptly.
Be Proactive with Potential Shipping Issues
Educate customers on potential shipping delays, backorders, and discontinued items--before the sale. Track items, and keep customers informed as things progress.
Keep Your Marketing Honest
Your customers count on you for accurate product information. Descriptions should be detailed, pictures should be clear, and customer questions should be answered quickly.
Learn to Spot Fraud
Know the red flags that could signal fraud, and make sure your employees know them, too. Validate suspicious orders--your customers will appreciate it.
Prioritize Data Security
Go above-and-beyond to protect your customers' personal data. Maintain high-level security compliance and consider offering tokenization and/or end-to-end encryption.
Stop Friendly Fraudsters
Don't be a victim of friendly fraud: track shipments, insistent on delivery confirmation when appropriate, clarify your billing descriptors, and monitor suspicious activity.
Learn More Simple Ways to
Save time and protect your revenue with more insider tips and strategies for chargeback prevention. This FREE guide details 50 techniques for shutting down chargebacks before they happen.Free Download