The key to preventing chargebacks is providing excellent customer service and delighting the customer. This doesn’t eliminate the possibility, the risk remains. But the intention should always be to prevent them as much as possible by practicing certain activities.
If the ratio exceeds a certain threshold there are bright chances that it will result in serious consequences to the business. Either your merchant account will be shut down or blacklisted. High-risk merchant accounts are at high risk of getting chargebacks.
There are certain procedures that you can put into practice to prevent chargebacks.
- Secure Payment Gateway
A secured payment gateway acts as an extra wall of security and can considerably help a business to reduce overall chargebacks. To avail of robust solutions, Radiant Pay helps merchants with a rugged Payment Gateway. High-Risk Merchant accounts are very susceptible to meeting chargebacks, having extra walls of security saves you from unpleasant situations.
- Card Verification
By performing card verification, you ensure that the customer placing the order is the cardholder or another authorized person.
- Clear descriptors
This is the label that the customer sees in his purchases on the credit card bill or their statements. The best practice is to use the company name that you have on your merchant account here so that the customer recognizes the purchase and avoids confusion about where this charge is coming from.
- Refund/Exchange Policy
Businesses can post their refund/exchange policy in storefronts and websites, and whichever furthermore places are applicable. By doing this you are informing your customers in advance about your policies.
- Terms & Conditions
Add terms and conditions checkbox on order details form or payment pages if you are selling online
- Email sales receipt
Provide your customer a sales receipt on their email also, set your software such that it automatically sends receipts to your customers. While doing so you are also gathering the customer information in your database which businesses can utilize for marketing purposes and updating offers and discounts promotions.
- Email reminders
This practice is for reminding the customer about the monthly subscriptions or bills due. The reminder goes out before the charge is due. This gives customers the benefit of anticipating the charge to pay in the coming days. And also notified when the card is charged along with the receipt to the customer on his/her email address.
- Risk scoring
It is a fraud prevention tool, that uses advanced statistical tools to compare every car-not-present transaction against a set of predefined rules.
There are many more ways a business can prevent chargeback or get chargeback protection by monitoring order velocity of card, identity morphing prevention, adding no chargeback payment method, etc.
Conclusion
The robust, effective payment gateway can help any business to prevent chargeback to a considerable amount along with the smooth functioning of payment transfers. Radiant Pay is a leading Payment Solution Service Provider that understands your needs according to the type of business you deal in and offers you suitable services.
Each and every business can benefit from a reliable, effective payment gateway that can help them avoid chargebacks and ensure that financial transactions run smoothly. Radiant Pay is a pioneering Payment Solution Service Provider that recognizes your needs based on the sort of business you function in and produces you with the appropriate support.