Increasingly, merchants are being victimized by chargebacks in illicit of behavior credit-cardholders. To avert being victimized by such fraud, here are five key steps.
Chargebacks are becoming big business – for some consumers. Dishonest consumers.
For instance, out of $2.07 trillion in U.S. Visa credit-card transactions in 2012, $765.9 million of them were disputed in chargebacks by consumers. Not all chargebacks are legitimate.
Chargebacks are designed to be a protection for consumers in disputes with merchants. The funds are removed from the merchant’s account and given back to the customer.
Indeed, there are valid chargebacks. But it’s becoming a nightmare for honest-dealing merchants.
What can you do to protect your business? Chargebacks 911 (www.chargebacks911.com), a firm that specializes in chargeback problems, has some answers.
Here are the company’s tips for businesses:
1. Answer the phone in three rings
In case a dissatisfied customer gives you the opportunity to resolve their issue, make sure you answer the phone quickly.
It is a myth that most customers who file chargebacks never attempt to contact the merchant first – in reality, most of these calls end in a hang up once the hold music starts.
2. Support 24/7/365 resolution vehicles
e-ConsumerServices offers a vehicle to resolve consumer disputes before they become chargebacks.
Third party advocate solutions like e-ConsumerServices and the Better Business Bureau provide alternative solutions that can also better educate the merchant on areas they can improve, which can help reduce even more chargebacks.
3. Provide Order Fulfillment Information
Openly state timeframes for order processing and send an e-mail confirmation and order summary within one business day of the original order. Provide up-to-date stock information if an item is backordered. When provided with this information, consumers are less likely to dispute card charges.
4. Educate the customer about your product value
This gives the cardholder additional assurance and reminds the customer of the reason they initially made this purchase. Whether it is a newsletter or friendly email announcing your latest success story, stay in communication about your product to reduce chargebacks associated with buyer’s remorse.
5. Identify Suspicious Transactions
Merchants should be on the lookout for any of the following signs of suspicious customer behavior:
- Rushed or random orders
- Shipping addresses that differ from the billing address
- Customers who seem reluctant to give personal information, such as zip code or street name.
About Chargebacks911: The firm serves merchants, consumers and the banking sector.
From the Coach’s Corner, here are more tips:
Strategies for Retailers to Prevent E-Commerce Fraud — Merchants are certainly aware of online fraud and 65 percent are trying to fight it, but their efforts aren’t working according to a study. The anti-fraud study was conducted by CardNotPresent.com and SignatureLink.
Protect Your Bank Accounts So You Can Sleep at Night — Imagine for a moment — you’re sitting at your desk enjoying a second cup of morning coffee. Then, your phone rings. It’s a call from your bank to discuss possible fraud. Your bank is concerned about possible suspicious activity with your accounts, and wants to make sure you’re not a victim.
How to Protect Yourself from Skyrocketing Trend – Tax Identity Theft — Tax identity theft is increasingly victimizing Americans, according to the Internal Revenue Service. As many as 1.5 million Americans were hit by tax-refund fraud in 2013, according to IRS Special Agent Kenneth Hines in a 2014 published report.
Tips for Preventing Robberies and What to Do If You’re Hit — As a business owner, you don’t like to think about the frightening prospect of being robbed. You could lose money and merchandise. More importantly, you and your employees could be severely hurt or even killed. So it’s strongly advisable to do an analysis of your store’s strengths, weaknesses, opportunities and threats.
“Intellectuals solve problems, geniuses prevent them.”