How to Prevent Chargebacks

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At the end of the article, The Chargeback Retrieval Process, we stated that George should not rely on winning disputes to keep his chargeback ratio low. Instabill has been a dependable and secure merchant account provider for more than a decade and we have seen our fair share of chargebacks. Below are our tips on how George, and you, can prevent chargebacks from occurring.

Optimize Your Billing Descriptor

George could have easily prevented Leroy's chargeback by optimizing his billing descriptor. By providing a short summary about his business as well as a customer support number, Leroy may have remembered Mary's purchase or called George's customer support line for help. Instabill knows that a great billing descriptor will help you bypass any contact with the cardholder's issuing bank.

Ship Orders on Time

One of the most popular reasons why customers initiate chargebacks is because they did not receive their goods on time. To avoid this type of chargeback, Instabill suggests that George should always ship his goods as promised on his website.

Shipping Signature

If George used a shipping service that required Mary or Leroy to sign for the supplements when they received the package, he could have used that signature as part of his documents. Providing proof that your customers received their goods will help you when disputing chargeback claims.

Clear Shipping and Return Policies

Not only do Visa and MasterCard require George to display clear and understandable shipping and return policies on his website, but they are also an important way to safeguard his business. Shipping policies explain how long it takes to ship goods, when customers should receive them, and what type of delay to expect if the package has to clear through customs. Return policies let customers know your window of when they can get a refund and under what conditions you accept returns. If a customer initiates a chargeback that violates one of George's policies, he can use his policy as evidence to dispute the case.

Send Automated Email Notifications

In today's e-commerce world, it has become a norm for merchants to send automated email notifications when a customer successfully finishes a transaction and when the package has shipped. However, these email notifications can also help you prevent chargebacks by keeping your customers in the know. You can also create automated email notifications to let customers know if there is a delay in shipment as well as a follow up email asking if they are happy with their purchase.

Screen Your Orders

If a fraudster purchases from George using a lost or stolen credit card, the actual cardholder will undoubtedly call their issuing bank to get their money back when they view their billing statement. However, you can screen your orders and cancel fraudulent purchases before charging the credit card account. There are many ways to detect credit card fraud, and Instabill can teach you!

Third Party Chargeback Prevention Services

The tips Instabill provided above can help you reduce your chargebacks, but George may need a little extra help. Companies like MaxMind and Kount help merchants prevent chargebacks. Although it creates an extra expense, it can also help George protect his merchant account by keeping his chargeback ratio low—making the price worth your money.

Preventing Credit Card Fraud with Instabill

Not only has Instabill been helping business owners find the best merchant account solution for more than a decade, but we have also been helping them combat credit card fraud. We are a one-stop merchant account service provider and we want to help your business succeed. From confirming suspicious orders to canceling fraudulent transactions, let Instabill teach you how to spot and stop credit card fraud.

Take a moment to submit our sign up form on the right and we will have one of our merchant account experts contact you and walk you through our application process. Once we receive your application and supporting documents, we can have you up and processing—and preventing chargebacks!—in as quickly as one week.

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