Chargebacks can be a ticking timebomb. Here’s how to fix it.
If you are looking for ways to avoid chargebacks and the MATCH list, these ideas are easy to implement. Schedule your appointment with a Payment Professional for a free analysis, we know we can help!
- Make sure the first four digits of the embossed or printed card match the four digits printed below.
- Chip & PIN cards should be processed on EMV terminals, this way the customer can enter their PIN and verify the transaction.
- Match the name and card number on the transaction receipt to make sure the magnetic strip is not counterfeit.
- If you are unable to swipe a card, make sure the slip is signed by the customer and shows the transaction date, authorization code, purchase amount, your information (your name, location), and description/itemization of goods or services.
Card-Not-Present Transactions + Higher Risk Of Chargebacks.
- Keep a transaction record – By keeping a record of problematic customers, you are ready and able to spot high-risk transactions. Save yourself by blocking specific credit card numbers and future purchases!
- Address Verification Service (AVS) – A fraud reduction tool to verify the cardholder’s address prior to completing the sale (ask a payment professional about this, it’s amazing!).
- Know your customers – Avoid chargebacks by having a relationship with your customers. For instance, call the customer to confirm the item number or delivery address.
- Customer service phone number – The customer service phone number should be printed on the receipt making it easier for customers to resolve disputes via the phone VS chargeback process.
- CVV2/CVC2 security – A security feature printed on the back of cards, which you can verify as an additional security check.
- 3D Secure transactions – If you accept online payments, ask your payment professional for a 3D Secure transaction authentication system. Used correctly with a cardholder’s security code you are protecting yourself and the customer from most cases of fraud chargebacks.
If you’re not careful with cancellations things can get dicey fast and you could put yourself in jeopardy real quick. Also, it may be wise to make sure there is an unsubscribe option.
- To avoid canceled recurring transaction chargebacks, take immediate action and update the CRM.
- Customers should be aware of your cancellation or refund policy in writing.
- Be sure to have your refund/cancellation policy clearly printed on the transaction receipt.
- The refund and cancellation policy should be on your checkout screen with an “I agree’’ button the customer must click on to complete the transaction.
- If your policy is no refunds or in-store credit only, this information needs to be included on the receipt.
- Refunds need to be done with the original credit card, remember not to refund credit card purchases with cash or check.
- If a customer did not receive their goods or services, a non-receipt of goods chargeback may occur.
- A “decline’’ code indicates that the card issuer does not approve the transaction. Do not try to force it through anyway.
Avoid duplicate transactions
• Process one transaction at a time through your POS terminal
• Balance your deposits at the end of the day
Unfortunately, chargebacks will always be a thing. Hopefully, you feel like some of these tips will help you minimize chargebacks, save money and that your stress level is no longer a frustrating ticking timebomb either.
Ask your Payment Professional for more details.