POSitive Processing Blog
Chargebacks: What Are They and How to Avoid Them
Wednesday, April 3, 2019
When you hear the word ‘chargeback’
how does it make you feel? Mad, scared, annoyed, confused?
A chargeback is the reversal of a
credit card payment that comes directly from the bank. Chargebacks are designed
to keep customers feeling secure from sub-par products or services, undelivered
goods, and criminal fraud.
Unfortunately, customers can also abuse
the chargeback process (friendly fraud) by claiming legitimate purchases are
Below are some ways to avoid
Provide contact information
may not resort to a dispute or chargeback if they can talk to you about the
issue. Provide an email address or phone number, or even call buyers in advance
when you'reselling higher-priced items.
one likes to wait. Respond quickly and professionally to all reasonable buyer
Provide a clear return policy
Make sure your return and refund policies are easy
to find and understand.
Use a clear payment descriptor.
Your payment descriptor should be the name of your business.
If a consumer does not recognize the name on their credit card statements, they
will be more likely to file a chargeback.
Learn to spot warning signs of fraud
Train staff to be on the lookout for suspicious
transactions, verify signatures in card- present transactions and to obtain
signatures on contracts and sales orders when appropriate.
Keep good records
Keep accurate records of customers' credit card transaction
dates, amounts and authorization information, in case you need them to fight a chargeback. Signed receipts or contracts are good to keep on hand too. This
information will help win a chargeback dispute against a customer who is
unfairly trying to take advantage of the system or who may have simply forgot
about the purchase.
What should you do if you receive a chargeback?
· Know your representment rights to avoid unnecessary losses for
· Act promptly when customers with valid disputes deserve credits.
· When cardholders contact you directly to resolve a dispute, issue
the credit on a timely basis to avoid unnecessary disputes and their associated
chargeback processing costs.
· Let cardholders know immediately of the impending credit.
· Address all of the cardholder’s pertinent claims.
· Be sure to supply “compelling” information to prove the true
cardholder participated in the transaction, received the goods or services, and
benefited from the transaction when appropriate.
If you have any questions about chargebacks you can give us a
call at 866.888.9724 Ext. 7.
B2B and E-Commerce Solutions
Data Security and Fraud Prevention
05/29/2019 - Is Friendly Fraud Putting Your
04/29/2019 - Gift Cards: The Gift That Thie
04/03/2019 - Chargebacks: What Are They and
02/13/2019 - 3 Tips To Protect Your Busines
11/12/2018 - Are you PCI Compliant?
03/14/2018 - Merchant Guide: 10 Essential T
02/12/2018 - Common Business Scams and How
02/09/2018 - Data Security Fast Facts
01/17/2018 - Vulnerability Scanning vs. Pen
01/17/2018 - BBB Warns of Email Scams This
01/10/2018 - Arm Your Business Against Cybe
11/15/2017 - MERCHANT FRAUD ALERT, 11-15-20
09/22/2017 - Have You Heard How OMEGA’s Dat
08/02/2017 - MERCHANT FRAUD ALERT, 08-02-20
FI Partner Program
Gift Cards and Customer Rewards
Just For Fun
OMEGA in the Community
OMEGA Merchants, News, and People
Products and Services
Short-Term Capital Funding