If a customer disputes a transaction on their credit card, then you might be facing a chargeback. After the credit card is used to make a purchase, the person can call the issuer and request a chargeback for several reasons:
They could claim that the charge didn’t come from them (the card number )
The product wasn’t received
The product is faulty
They weren’t satisfied with the service that they received
As a business owner, it can be frustrating to deal with chargebacks. But, there are a few important things that you can do to reduce the chargebacks that you receive.
- Tip #1: Help the Customer: If you receive a call from a customer that isn’t happy, then do everything that you can to resolve the situation. Customer service is the best way to fix the problem and prevent the risk of the person contacting the credit card company for a refund. Some companies will offer discounts or future credits to help with dissatisfied customers.
- Tip #2: Keep Receipts: As the owner of a retail business, it is important to keep your receipts for at least 180 days. Set up a filing system so that you can find receipts if needed. One of the first things the issuer will ask for is a copy of a signed receipt, to prove that the customer was in your location and accepted the goods that were sold.
- Tip #3: Collect the Right Information: If the transaction is completed without the presence of the card, it is best to accept the payments by collecting specific information. These details should include address verification and the CVV code. This information shows that you were working with the customer and able to get that information at the time of sale.
- Tip #4: Watch Out for Overseas Fraud: Look at each sale individually, especially if it is a big sale. If you receive a call from a customer who is purchasing from another country, then it could be a warning sign of potential fraud. Make sure it is a legitimate transaction before accepting it. A lot of chargebacks come from out of country purchases.
Do you have questions about credit card processing? Talk to me to learn more about the services that are available.