As an online merchant, the notion of chargebacks can be disastrous to your business. They are costly and can cause a great deal of suffering if not handled properly.
Here are 3 quick tips to help you prevent chargebacks:
Sort out your descriptor: A lot of merchants can find that quite a number of your incoming chargebacks are related to the reason “customer does not recognize transaction”. This is most likely due to the descriptor being unclear. The descriptor is there to explain to the customer what the charge is for. If the customer cannot understand what it is for, the chances of a transaction dispute are high. If you are using a third party PSP, there might be an option to edit the descriptor that follows your PSP’s abbreviation using a featured called dynamic descriptor where your PSP, who is the merchant of record in front of the Acquirer, will have the descriptor modified according to the vendor who initiated the transaction. It is highly recommended that the soft descriptor match your product and store name as much as possible
Clear product description: A clear product description can help prevent “item not as described” return codes. Having a detailed and understandable product description can also be used as dispute documentation to assist in reversing chargebacks, and answering retrieval requests.
FXTM Recruits Financial Broadcaster Han Tan to its Market Research TeamGo to article >>
Refund policy: A good refund policy is a very important tool to have for your online store. Of course, standing by your refund policy is just as important. Make sure to be attentive to any refund request. Issuing a refund is always preferred over a chargeback. Just like the product description, a refund policy is a great piece of documentation for disputing chargebacks and retrieval requests
Subscribe to payment magnates to stay up to date with more useful tips to help your online store grow safely.
We will also soon publish an insight dedicated to chargebacks types, retrievals and how to fight them
Photo courtesy of Wikipedia