Business & Finance

Merchant Chargeback protection

Why are chargebacks so destructive? It is because they are more expensive than the amount you can reverse in a transaction. The cost of chargeback can even be double the original amount if you add the overhead, bank fees, and other related costs. If you consider the cost, chargeback protection should prioritize every merchant to protect themselves from chargebacks.

Suppose you are wondering how to protect yourself from chargebacks. In that case, you need to look for a trusted chargeback company that can help you understand the causes and help you prevent chargeback with the effective steps listed below. The main types of chargebacks to look out for include: true fraud, merchant error, and friendly fraud.

How to Protect Yourself from a Fraud Chargeback

There are no specific ways to completely avoid chargebacks, such as fraudsters, crooks, and criminals who target your business. Since evading them altogether might not be possible, you can reduce the chances of getting tricked and minimize the possible damage if a chargeback occurs.

Here are some precautionary steps you need to consider:

  • Use a reliable payment processor
  • Pick seller protection features
  • Keep proof of all transactions
  • Ensure the payment description is accurate and clear

Use a Reliable Payment Processor

You will be accepting various payments for transactions, especially if you have an e-commerce store. It can be very risky compared to when you can inspect the card physically.

Whichever processor you opt to use, ensure that it has powerful fraud detecting features in place. Detection features can include inputting the address verification services (AVS) and a CVV card number. The AVS helps to check the billing address of a customer against the card issuer’s record.

Pick Seller Protection Features

Some of the best payments processors that provide monitoring and fraud detection services include PayPal, Cash App, and Shopify.

Getting a good payment processor will allow you to:

  • Get insurance when a chargeback loss occurs
  • Blacklist and whitelist certain account numbers
  • Dealing with different disputes using the payment platform
  • Set up selected charges which only need automatic approval and which may need additional authorization.

Keep Proof of All Transactions

In case you get yourself tangled up in a chargeback disagreement, you may be happy if you kept evidence of each transaction. Some of the transactions that you need to keep safe and orderly include:

  • A copy of the return policy
  • Proof of delivery if it’s an online business
  • The AVS result documents, if available
  • Copies of your sales orders or receipts

Ensure the Payment Description is Accurate and Clear 

Suppose your company’s name appears on all your clients’ bank statements, known as your payment descriptor. If your payment descriptor is incorrect, confusing, or out of date, make sure you correct it to allow your clients to recognize you instantly.

A few clients can be confused, and they may file you with a chargeback, while other clients may opt to misuse the chargeback and pretend they are not aware of where the charges came from.

Using 3-D safe tools is recommended to combat fraud chargebacks and to validate and verify the identity of every transaction. If you suffer from many constant chargebacks, seek help from chargeback company’s. You will get professionals and experts who will help you and rescue your business.

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