This is part 2 of a series on chargeback prevention.
In the first video and blog post, I covered the first 17 ways to eliminate or reduce the possibility of having chargebacks which are mostly related to reasons that pertain to friendly fraud chargebacks which is innocent confusion on the customers’ part.
Today, I’m going to give you the next 15 ways to reduce and eliminate chargebacks.
Let’s get started with the list:
#1. Don’t co-mingle merchant account funds
Don’t ever take payments for services that are not offered by your company i.e. for a friend or another company that you own. Don’t co-mingle merchant accounts.
#2. Reduce security vulnerabilities by using CardSecure technology
A company like Cardconnect will offer a point-to-point encryption and deploys payment tokenization with all of their hardware.
This technology can completely eliminate some types of fraud.
#3. Send out a monthly newsletter to all clients, especially the ones that are regularly paying you
In short, stay in contact with customers and clients.
Not only does regular communication give you a chance to stay in touch with your clients, it shows them that you’re still there, doing want you do and you’re there for them if they need you.
As it pertains to mitigating chargebacks, when you stay in touch with them via a newsletter, you can subtley remind them about your refund/return and purchase policies so they know in advance
#4. Make sure to clearly disclose credit card surcharges
If your company chooses to participate in surcharging or cash discounting programs, do so by following the rules and regulations.
It’s a very controversial issue and some customers don’t like to pay that fee, so if you charge it to a customer without their knowledge, your increasing the likelihood of a chargeback.
#5. Use 3d Secure
If you’re not familiar with it, this is a security layer for online credit card transactions.
You may have seen it on some websites by noting the Mastercard Securecode or the Verified by Visa logos on the order forms.
#6. Train employees and be aware of what causes chargebacks
Make policies to eliminate those practices that increase likelihood of chargebacks and implement procedures that help mitigate, reduce and eliminate chargebacks from your daily operations…
#7. Make it easy to return items
Once again… depending on your product or service, if you can offer returns make it easy to do so.
If your getting chargebacks as a result of a confusing return process or your customers just don’t know if they can return an item, change your policy and make sure it’s clear!
#8. Send a post purchase “order summary” email
Start by thanking them for your purchase and then spell out the terms of service for their purchase.
Remind them of your return policy, what they bought, instructions on how to use it, where to go if they have questions about the purchase, and include other instructions specific to the product or service you sell.
#9. Offer a 30 day no questions asked refund policy
Consider analyzing when chargebacks typically happen.
Offering a guaranteed “no questions asked refund” will put the pressure on you to deliver over and above customer expectations and provide buyer relief that may deter potential chargebacks.
#10. Manage monthly subscriptions and cancel billing plans promptly
Don’t let billing plans linger and if you get a request for a cancellation and you have a monthly payment plan.
Be sure to cancel it immediatley or implement a self cancelling billing policy.
#11. Offer an “Update Your Card on File” Link in a members area or on your website –
This applies only if you have recurring billing of some sort.
For customers who make regular purchases or have a monthly subscription or billing plan with you, it is necessary to offer this service in case they need to change the card that is being billed.
Again, make this “update your card” option easy to find.
#12. Implement Courtesy Calls
Follow up after the sale to make sure the customer is happy with the purchase and that they received everything.
#13. Keep records of customer purchases
If someone has a bad history of purchasing with you, you may choose not to do business with them in the future OR require alternate forms of payment like bank wire or cash.
#14. Trust your gut and avoid fishy purchase requests
If someone wants to order a LOT of product and it’s your first time working with them, or they don’t have an established buying history with you, change your policies for how you accept large purchases. If it’s a first time buyer, additional layers could be added to your buying process like signing buying contracts and providing ID and other forms of identification.
#15. Bite the bullet and proactively offer replacements a first option
If a customer orders a product and contacts you to claim the product is defective, damaged or not working, offer to simply send them a replacement and they can keep the old one.
Obviously you have to make sure this will work for your business model, but this is a very aggressive and well received option by your customers.
It will likely improve their satisfaction with their purchase and your company!
Again, offering a replacement could even be a more cost effective option for you when you factor in the time it takes you to produce the documents to prove the transaction and the fees associated with the transaction if you are in the end, found to be at fault.
#15. Hire a professional chargeback manager
lt’s much cheaper than dedicating an employee to handle chargeback issues for you.
We have discussed time being money and a professional service can take care of the chargeback problems you might be experiencing at a fraction of what it might otherwise cost you to handle in house.
Chargebacks911.com is a managed for you service that helps you reduce potential fraudulent transactions and in some cases can even entirely eliminate chargebacks from happening.
Click here to learn more about hiring a professional to manage chargebacks for you and your company.