Mastercard Chargeback Prevention Best PracticesTechnology is Just the Start. Good Practices Matter, too.

Exploring Other Mastercard Chargeback Prevention Best Practices Beyond Using the Tools Provided by the Card Network

Reliance on Mastercard’s dispute prevention tools — no matter how carefully you adhere to the information we’ve covered so far — can’t overcome poor business practices.

While these technologies are powerful, they’re not a cure-all against customer complaints, disputes, or chargeback fraud. Rather, best practices like implementing clear billing descriptors, providing clear and proactive post-purchase communication, and processing rapid refunds can also help you keep chargebacks at bay.

Here, we’ll run down some key tips and best practices that Mastercard recommends for preventing disputes.

One of the most common reasons for disputes is that customers simply don’t recognize your charge on their statement.

To prevent this, make sure that the name that appears on their statement is one they’ll recognize. Use your well-known “doing business as” (or “DBA”) name, rather than your legal or holding company name. Also, consider including a customer service phone number or email address in the descriptor itself so that customers can contact you if they run into questions or concerns.

For even greater clarity, try using dynamic billing descriptors, which can help explain the items or services purchased, in addition to static data fields like your name and contact information.

Candid and proactive communication at every stage of the buying process can heighten customer trust by keeping buyers informed. Make sure your customers are in the loop with timely order confirmations, shipping notifications, and alerts about delivery delays.

If you offer subscription services, send billing reminders, as well as notice of any price changes, to cardholders before they’re charged so that they receive advance notice. Doing so can prevent customers from filing disputes out of frustration or confusion.

If a customer wants to return an item but can’t figure out how — or is forced to jump through hoops to get their money back from you — they’re likely to just file a chargeback with their issuer instead.

After all, cardholders opt for the path of least resistance. So, if you want to give your customers a real incentive to work with you directly, a customer-friendly refund and return policy that’s easy to find on your website is table stakes.

Specifically, write your policy in plain English rather than legalese, be generous with your terms, and offer flexible and extended timelines for returns and exchanges. When possible, err on the side of providing a refund, if for no other reason because you can avoid a chargeback.

Also, be sure that you comply with Mastercard’s rules regarding disclosure. You must display your refund and return policies on your website, on receipts, as signage in a storefront, or at check-out.

Product descriptions help cardholders know what to expect before they add an item to their cart. On the other hand, ambiguity in listing descriptions can lead to misunderstandings or miscalibrated expectations, which may flare up into frustration and, eventually, a dispute.

Be as clear, detailed, transparent, and objective as possible when describing your products or services. This ensures that your customers know what to expect before buying and that cardholders who end up making a purchase don’t develop buyer’s remorse afterwards.

Some customers are willing to work with you before turning to their issuers. But, your customers are busy people. If they can’t find your contact information easily or find themselves waiting on hold for too long, they may give up and file a chargeback instead.

To avoid this outcome, you should ensure that your customer service team is easy and pleasant to find and work with, and that frontline representatives are given the tools and authority to resolve customer grievances quickly and fairly. Ongoing staff training can also help your team recognize signs of fraud and de-escalate issues that may otherwise morph into disputes.