#chargebackservices

Few Tips To Reduce The Chargeback Rates

The truth is that running a business requires quite a lot of considerations to be implemented and thoroughly accounted for. With this in mind, chargeback prevention is without a doubt something that needs to be taken into the most serious consideration. With this in mind, the first thing that needs to be clarified is what a chargeback actually is. This is the process in which the customers retrieve funds from the merchant as a result of a disputed credit card transaction. This process is almost always going to be initiated by the cardholder themselves as well as the corresponding bank of issue.

The Chargeback System and its Benefits

There are quite a lot of powerful benefits which stem from using a prominent chargeback management system. Let’s go ahead and take a look.

Prominent management– The chargeback system is going to simplify your workflow tremendously, and you are going to be spending a lot less time and money on annoying chargeback procedures. This will open up more time for you to look after your own business.

Dynamic real-time updates – the chargeback management system is going to provide you with the opportunity to integrate dynamic and real-time updates. The system includes built-in processors for payments as well as card provider updates. It is going to improve the overall performance and your success rate.

Precise analysis – you can take a look at the specific reason for the chargeback and undertake the necessary preventions to ensure that it never happens again.

Secure Environment – protection should always be a number one priority for your enterprise. With a comprehensive chargeback system, you can rely on tools which are going to manage the chargeback and reduce it to its minimum.

Other Considerations to be Aware of

The chargeback system is also going to enable you to draw the proper conclusions and reach the necessary solutions. This is paramount for the proper conduct of your enterprise and the optimization of the processes within it. With this in mind, you are expected to drive a lot of advantages from it that every contemporary merchant should be focusing on. Not having a system of the kind means that you would have to physically visit and audit a wide range of different websites and the businesses they conduct to handle the issue. A chargeback system, on the other hand, is going to provide you with everything that you need in order to comprehensively handle everything that’s necessary. It’s quick, it’s convenient and most of all – it’s truly effective. Not only are you going to spare resources, but you will also increase customer satisfaction and reduce chargebacks.

The Chargeback System and its Process

The entire process revolving around chargeback is rather complicated, and it’s filled with particularly sensitive deadlines as well as legal procedures, documentation and a lot of additional requirements. It’s important to take a look at some of the most common reasons for which a chargeback process is going to be initiated on behalf of the customer. This is not only going to help the chargeback management draw the proper conclusions, but it’s also going to allow it to come up with proper and actionable chargeback prevention strategies. With this in mind, the most common issues are:

The customer isn’t satisfied with the service or the product which have been delivered

The items which were paid for weren’t delivered to the cardholder

The transaction itself was not authorized

The consumer attempts to engage in a friendly fraud

An error in the billing process took place (for instance, the card was billed two times)

As you can see, the reasons are numerous but it goes without saying that unsatisfied customers are the most common initiators of chargeback processes. From this point forward, if the issuer is convinced that the cardholder has the necessary merit to initiate the dispute, he’s going to notify the actual acquirer of the transaction reversal who is going to notify the merchant. What is more, there is going to be a fee charged for the administrative trouble and efforts.

Things to Consider

World of payment is advancing technologically, it has increased possibilities for cardholders and merchants to connect globally. Cardholders can make payments while using mobile devices, and enjoy multiple payment methods at a time. Technological advancement has made easy to detect and protect data with the help of tools and strict policies.

Online frauds have cost billions of dollars to companies, cutting their earning dramatically. Online and offline frauds are increasing rapidly, with each retailers losing at least $3 for every fraud they incur in the year 2014. This was $2.79 in 2013, especially mobile frauds which are driving these costs higher each year.

How E-commerce Mitigate Fraud?

It is a challenging task to entirely eliminate frauds, but necessary steps can be taken to ensure the network is secure. Security protocols, antiviruses, and firewalls can help protect against hacking attempts.Updating software problems ensure sensitive data of business is safe. There are many ways to protect the business, here are some of them:

Increase awareness of fraud trends

Partner with payment processors who are verified

Using encrypt transactions for confidential information

Ensure Login and tokens are changed on regular basis

Policies for accessing confidential data

Security checks using antivirus programs

Customers to log into accounts before making purchase

Payment frauds can not only hurt merchants but customers as well. Aggressively protection against frauds can improve the bottom line and the reputation.

How to prevent friendly Frauds

Saving IP Address: If you keep a record of IP addresses, it will help a lot. It is usually on merchant receipt and can be used to challenge chargebacks as supporting evidence. For example, a person belongs to the certain town, and the IP address also belongs to the same town, then suspicion can be back on card owner.

CVC Data Collect: You can request security code during the checking process. These are three digits at the back of MasterCard, Visa, and four digits on American Express cards.

Signature for the goods: If you don’t know the customer, then it is better not to leave deliveries at the door of your customer. A signature is important, it can help prevent claims that state goods not arrived.

Keep communication records: keep records of communication because these can be used as an evidence. Live chat sessions, emails, and other communication material should keep as a personal record to fight against chargebacks. You can claim that customer was aware of the transaction and participated.