Good Customer Service Helps to Avoid Chargebacks

Chargebacksprimarily occur for three reasons:

Item Not Received. The cardholder placed an order, paid for a service or product, but claims to have not received the order or service.

Significantly Not As Described. The cardholder claims that the product or service received was sub-standard, compared to the merchant’s description.

Unauthorized Transaction. The cardholder claims that a transaction is fraudulent or was processed without the cardholder’sconsent.

In all three scenarios the cardholder has a legitimate right to file a chargeback and receive a refund of the transaction amount.

Good Customer Service and less costly solution.

As a merchant you want to maintain a good customer relationship toavoid the inconvenience and costs associated with chargebacks. Here are a few suggestions:

Customer Service Contact Information. Ensure that your website makes it easy for customers to find your contact information. Using an email contact formis a great idea. The easier it is for a customer to contact you directly the less likely they are to call their bank or credit card company first and file a chargeback.

Order Confirmations. Send a confirmation email as soon as an order is received, and make sure to include your contact information. Or call the customer to confirm the order before dispatching.

Customer Inquiries. Respond quickly to all customer inquiries. No one likes waiting unnecessarily for a reply.

Dispute Resolution. Have company policies in place to resolve common customer complaints. A well-trained customer service team is a must.

Return Policy. Make your return policy easy to find online and word it in a way customers can easily understand. Not everyone understands legalese

Preventing Disputes from Turning into Avoid Chargebacks

• Item not Received Dispute. Keep a record of the shipping address provided by the customer during the order process. Purchase shipping insurance to cover any damagedor lost orders. Use a shipping method that allows online tracking of packages and delivery confirmations which will give youand the customer proof that an order was sent on time and to the correct location. If an Item is not available or was damaged or lost while in the process of being delivered, inform the customer that you are regretfully cancelling the order and give them a timeframein which to expect a refund. Then process the refund as quickly as possible.

• Significantly Not As Described Dispute. Product and service descriptions should be accurate, with nothing kept hidden from the customer. Include such things as “no color choice” or “product may appear slightly different than the picture.”
• Unauthorized Transaction Dispute. There are situations when a charge is clearly fraudulent, and then there are times when a transaction may only appear to be fraudulent to the cardholder. In the second instance, the cardholdermay have just forgotten about a purchase, may not recognize the company name, or has forgotten special circumstances that permitted the charge. The only way to resolve these kinds of disputes is through direct contact with the cardholder.

Dealing with customer service and chargeback issues can be overwhelming and takes away time from other business activities.Contracting out customer service functions and chargeback management is always an option and can prove to be a more efficient and less costly solution.

Chargeback Prevention Alert for High Risk or Low Risk Business

We have many many sources to detect fraud and possible chargebacks. Over years we have partnered with banks, financial institutions and Trusted Data Contributors who update your data across many sources to provide real time data chargeback prevention alerts. Merchants can now resolve or refund their unhappy customers and not have to deal with heafty fees due to fraud.

For High Risk or Low Risk business ALERT is an option to avoid chargeback, due to this option merchant can reduces the chargeback ratio which is good for merchant’s account.

Excessive chargeback is not good for merchant’s MID because after. Too many chargebacks states that merchant’s mid is in danger and may be very near to close the Account. Acquirer won’t wait to cross the Account limit, MID will close as soon as chargeback flow is high. Alert will provide an option to control chargebacks and maintain chargeback ratio wich is good

for merchant’s account. Merchant have various option after received an alert like: Merchant can issue Full Refund, Partial Refund, Reshipped the merchandise or hold the merchandise which ready to ship or Contact to customer and resolve the issues.

Benefits of Chargeback Prevention Alert

Overall Chargeback alerts reduction by up to 40%

Avoiding costly fees, fines, penalties, and potential loss of your processing privileges.

Real time notifications to help stop losses by preventing chargebacks from additional billings, and from fulfillment of goods and services

Zero-defect guarantee ensures that if a case is successfully resolved but later filed as a chargeback, you don’t pay.

Intuitive self-service protal can have you up and running within a day without tying up and of your IT resources.

You still maintain control whether you decide to stop fulfillment, provide a refund, or take no action and accept the chargeback risk.

Maintain a healthy account : To maintain a healthy account is a must if you plan on being in the enterprise for the long haul. There are several methods which can be now available to prevent Chargebacks from hitting your account. it’s far particularly endorsed you visit an experienced business enterprise . they’ll take the subsequent three Steps to restricting the consequences of chargebacks

How to recover money after a chargeback?

You can also try to do it yourself following these steps. Respond as soon as possible, time is of the essence

Gather information about the transaction including the results of the CVV and AVS Show a copy of the receipt that was shown at the time of the purchase Send proof of shipping when possible Show accurate and appropriate marketing material and user flow to the ultimate purchase when appropriate Include copies of any correspondence as well as any notes generated by customer service If pre-authorization was obtained from your processor, include proof.

How to Preserve Your Business From Chargeback.

How to Prevent Chargebacks. Chargebacks are something every merchant should be prepared for. Online Fraud detection lead to Fraud Prevention. If your customers raises
dispute with their issuing bank the money will be reimbursed to them immediately. Now it is upon you to prove chargeback was not correct by proving that transaction was a valid transaction. You can never stop your customer to stop raising disputes but there exist chargeback prevention system to reduce such kind of disputes. Chargeback prevention is something that is critical from business point of view.

Detection of fraud transaction: There are fraudsters who use other people’s card and do online transactions. You should have proper transaction monitoring and as soon as you came to know about fraud transaction, immediately refund the same. If you do not refund it, there are possibilities that in the future the actual cardholder
raises dispute.

Descriptor Name: The most critical reason why the chargebacks are experienced are because customers do not recognize the payments. Your descriptor name is what appears on customer’s bank statements. It should not be different from your business name or your legal name. When the Payment Gateway provider call the customers for
validating transactions and they failed to recognize the payment they will surely raise the disputes.

Get it in writing. Entrepreneur Glenn David has never lost a chargeback request with his Skokie, Illinois, party services company, Glenn David Productions. He says one
of the most important things he's done to protect himself is to require customers to sign a contract that spells out the specific services his company will provide. He gives them lots of options they can return the signed contract via fax or email, or sign it electronically online or with a fingerprint via a smartphone application. The key is to get the customer's authorization in writing."The card isn't present, but the contract says that so-and-so authorizes us to bill their card in this amount," David says. "Once we had to address a dispute with American Express, who defends their customers like no one else. We submitted the contract and, within 24 hours, they found in our favor."

Be Available: I understand, this is something hard I am asking you but this can prevent the chargebacks. Your website should have some sort of customer care number and
business email id where they can raise their concern before going to banks. As per law, disputes can be raised by the customer till 2 years from the date of transaction but generally banks have policies of accepting disputes till 6 months from the date of transactions. You can hold the customer if their queries are properly addressed.

Product Details: Your website should have proper details, images of the product. It should never be the case when the product is delivered, customer opens it and says,
“Oh god, this was not something I ordered” The chances are more that customer will raise dispute

Deliver product in time: Don’t hold your customer money for long. If the product is not delivered to the customer within the time frame, and their queries are not answered in time, they will ask for the refunds from their issuing bank and you will get chargeback.

Offer Refunds: I know this is something that is tough but you have too. Chargeback is something that was created to safeguard customers. In case something wrong has happened. Initiate refund and prevent chargebacks.

HOW CAN CHARGEBACK ALERTS HELP TO HIGH RISK MERCHANT

Chargeback Alerts

When a customer contacts issuing bank to file a chargeback, issuing bank enquires about it and determines whether the complaint is genuine. If it is, then the card network is notified of the dispute. Here, at this point, the chargeback alert system receives the notification of the incoming chargeback before it is submitted to the card network. Chargeback expertz has been and is still working with a large network of issuers that allow us to intercept chargebacks from almost every financial institution.

How Can Chargeback Alerts Help?

If the notification related to chargeback is generated on time, merchant gets the time to prepare a plan of action in order to respond to the incoming chargeback. This plan of action can be:

• Full or Partial Refund: Being one of the most common response for chargeback alerts, merchant can effectively stop the chargebacks by setting up rules to automatically generate refund to the customer.

• Blacklisting the Customer: It is a harsh step to blacklist a customer but sometimes become necessary as a respond to chargeback alerts. If a customer is doing friendly fraud, it is fine to block the customer permanently. Blacklisting works as asafeguard against problematic customers.

• Cancelling Services: Chargeback gives opportunity to the merchant to cancel the services for a particular customer the moment the transaction is disputed, especially if your business uses recurring and subscription billing.

• Cancelling Shipments: If the shipment is still in fulfillment, through Chargeback alerts, merchant can cancel it before it is sent to the customer, which might stop the chargeback.

• Rerouting Shipments: If the chargeback is received after the product is shipped, merchant can still reroute the shipment and can get delivered it to the warehouse. This method is as effective as cancelling the shipment.

• Accepting Chargeback: If the merchant chooses not to respond to the chargeback, it proceeds to the card network, as it would do normally. This will affect the chargeback ratio of the business and but the merchant can still dispute it.

Who Can Avail Chargeback Alerts

All the merchants, irrespective of industry type, are benefitted by chargeback alerts. But high-risk merchants or merchants dealing with large volume of chargebacks are benefitted the most.

• High-risk merchants: High- risk merchants are the ones who operate business dealsthat involve high level of fraudulent activities. Issuers and card networks consider high-risk merchant as liability and a financial risk. There are number of factors that defines a business as high-risk and these are:

• Chargeback history of the merchant 
• Irregular and high ticket sale 
• Part of industry whom reputed banks do not support 
• Highly regulating industry

• High chargeback ratio merchants: Traditionally, the businesses do not appear as high-risk, but a high chargeback ratio puts them at risk and thus they fall in high-risk category. Few industries that fallunder such category are:

• Software companies 
• Travel and hospitality business 
• Apparel 
• E-commerce

Why Use Chargeback Alerts

• Protects your chargeback ratio 
• Reduces fee and Increases profit 
• Ensures better customer relationship.

SHOULD I OUTSOURCE CHARGEBACK MANAGEMENT?

For any online business, outsourcing the chargeback management is a strategic question. To understand the overall health of your business, chargeback must be tracked and understood as a key metric. Increase in chargeback ratio creates a clear danger to company’s reputation and the revenue may decline. Chargeback is something that a merchant does not want to encounter but if he does, it is important for a high-risk merchant to understand the real cause behind such chargebacks. Chargebacks can occur for the following reasons:

• Poor customer service
• Error in handling transaction
• Shipment policies
• Return policies
• Billing descriptor
• Faulty product or service

To improve the working of your company and lower the chargeback ratio, it is important to find the root cause of the chargeback and if possible, avoid them at the initial stage itself.

During chargeback represented, a lot of information regarding the transaction is required. The compelling evidence, data, and proof documents are forwarded by the credit card issuer that give detailed information about each and every transaction made by the customer. This information can be used to improve your business’s internal process, policies or product. In order to attain it, you would need the help of experts to collect relevant information, and there are various software and technology available. Just choose the best and the one that meets your requirements.

Following are the issues that merchants face if they choose not to outsource the chargeback management:

• Which chargeback is worth fighting?
• Which chargeback can be prevented?
• Alternatives to avoid chargeback
• Real-time solution to the chargeback
• Data required to dispute chargebacks

Without a team of experts, it becomes very difficult to analyze the issues and find a solution.

It is always better to let experts handle the problem and provide relative solutions. It is better to outsource the chargeback management to a team that has an expertise while you focus on the business and generate revenue. Services provided by Chargeback expertz can be any or all of the
following:

• Chargeback Alerts 
• Chargeback Prevention 
• Chargeback Representment 
• Analytical Reports 
• Merchant Account Analysis

But Before Outsourcing Chargeback Management, Do Ask Yourself Following Questions:

• Do you really need professional help? 
• What Chargeback Management Company does to help a merchant? 
• What kind of results can you expect and within what time frame? 
• How will chargeback management software integrate with current platforms you are using? 
• What is all included?
• What will be the cost to outsource chargeback management?

Chargeback expertz has expertise in the field. Let us help you in reducing, managing and winning chargebacks. If you need a demo, give us a call on +1 855-465-4723. A well-qualified sales representative will take care of all your queries regarding chargeback management and address your concern in no time. We guarantee you with the best services at the cost that suits your pocket.

How To Chargeback Solution Protect Your Business?

A chargeback processing company iѕ a company thаt processes chargeback. Chargebacks wеrе designed аѕ a fоrm оf consumer protection. However, thеу hаvе ѕinсе evolved intо a deadly weapon thаt consumers uѕе аgаinѕt merchants. Friendly fraud iѕ оftеn called chargeback fraud bесаuѕе consumers uѕе thе chargeback process tо steal frоm merchants. Thеѕе ѕо called chargeback processing companies hеlр in protecting thе right оf consumers; tо gеt adequate vаluе fоr thеir money аnd issues return whеn thеrе iѕ аnу case оf customer dissatisfaction.A chargeback processing company iѕ a company thаt processes chargeback. Chargebacks wеrе designed аѕ a fоrm оf consumer protection. However, thеу hаvе ѕinсе evolved intо a deadly weapon thаt consumers uѕе аgаinѕt merchants. Friendly fraud iѕ оftеn called chargeback fraud bесаuѕе consumers uѕе thе chargeback process tо steal frоm merchants. Thеѕе ѕо called chargeback processing companies hеlр in protecting thе right оf consumers; tо gеt adequate vаluе fоr thеir money аnd issues return whеn thеrе iѕ аnу case оf customer dissatisfaction.

Understanding thе Difference – Chargeback Companies

Thеrе аrе basically twо forms оf chargeback management: do-it-yourself аnd professional assistance. Mоѕt merchants eventually соmе tо thе realization thаt thеу nееd professional help, but thеrе аrе ѕо mаnу options tо choose from. Hоw саn a merchant make a wiѕе decision whеn it’s timе tо hire a chargeback company? Whаt characteristics ѕhоuld thе merchant lооk for? Whiсh companies ѕhоuld thе merchant avoid? Based оn recent merchant surveys, what’s missing frоm thе vast chargeback management resources iѕ a guide tо choosing a chargeback company. Tо hеlр merchants bеttеr evaluate thеir options, hеrе iѕ аn outlined characteristics оf thе good аnd bad chargeback companies.

The Purpose of Chargebacks

On the outside, chargebacks can appear very similar to traditional refunds, yet there is one very relevant difference: rather than contact the business for a refund, the consumer is asking the bank to forcibly take money from the business’s account. An investigation follows, and if the bank feels the cardholder’s request is valid, funds are removed from the merchant’s account and returned to the consumer; the consumer, on the other hand, is in no way obligated to return whatever was purchased. The merchant has no say in this. In fact, merchants likely won't even know it happened until after the fact. As a consumer protection, the chargeback process is naturally skewed towards the cardholder’s safety, in multiple ways:

Chargeback Companies tо avoid

Knowing whаt doesn’t work iѕ juѕt аѕ valuable, реrhарѕ mоrе valuable, thаn knowing whаt dоеѕ work. Maya Angelou said, “Do thе bеѕt уоu саn until уоu knоw better. Thеn whеn уоu knоw better; dо better.” Merchants might nоt hаvе knоwn bеttеr before, but nоw thеу do. Stay аwау frоm chargeback companies thаt dо mоrе harm thаn good.

Marketing disguise Limitation: Nо matter whаt item iѕ bеing purchased, thе shopper nееdѕ tо lооk past thе big, flashy marketing slogans аnd rеаllу analyze thе “hidden” message that’s nоt оbviоuѕlу conveyed. Merchants lооking fоr a chargeback company аrе nо exception.

Marketing disguise Limitation: Nо matter whаt item iѕ bеing purchased, thе shopper nееdѕ tо lооk past thе big, flashy marketing slogans аnd rеаllу analyze thе “hidden” message that’s nоt оbviоuѕlу conveyed. Merchants lооking fоr a chargeback company аrе nо exception.

Silence thаt speak volume: In mоѕt cases, individuals аrе advised tо avoid companies thаt оvеr promise аnd under-deliver. Whilе thiѕ iѕ good advice, it iѕ аlѕо important fоr merchants tо note whаt thе chargeback company isn’t saying. Cаn thеу adequately explain thе chargeback process аnd thе risks аѕѕосiаtеd with еасh stage? Dо thеу understand thе business аnd itѕ mechanics? Cаn thеу identify аnd articulate industry problems аnd trends? Dо thеу hаvе a guarantee? Unlеѕѕ thе chargeback company саn offer a solution tо identify thе rеаl source оf chargebacks, thе strategies аrе оnlу treating thе symptom.

Ovеr dependent оn technology: A robot саnnоt fix a problem created bу a human. However, a robot саn make a merchant’s chargeback issues worse. Leaving thе interpretation аnd prediction portion оf a solution tо software iѕ a recipe fоr failure. Thе ecommerce environment iѕ constantly changing. Solutions muѕt bе adaptable аnd dynamic. Fеw chargeback companies аrе аblе tо create thеir оwn solution thаt iѕ capable оf evolving in tandem with industry.

Explanation of Visa Chargeback Reason Codes 57 | debit card chargeback

Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time.

The issuing bank received a claim from the cardholder, acknowledging that he or she participated in at least one transaction at the merchant side but disputing participation in the remaining transactions which was held in short period of time. The Customer also states the card was in his or her possession at the time of the disputed transactions.

What are the Causes of Reason Code 57?

Causes for Reason Code 57 are:

• Merchant fails to void multiple transactions of a single Credit Card account.
• Merchant tried to process multiple transactions fraudulently.
• Cardholder authorized the transaction earlier, but later denied.

Prevention Techniques:

• Merchant should void the transactions in that Customer not participate.
• Merchant process Credit immediately if Multiple transactions held from a single credit card account of same product..
• Merchant should share all Policies with Customers and let them know about the Orders and offers.
• Always request to Cardholder to sign the policies in addition to the final transaction receipt..
• Trained employees to operate point-of-sale terminals and void transaction..

Disputing Reason Code 57 Chargebacks

Whenever a business receives a chargeback, the merchant always has the option of disputing the case. If the merchant has proper supporting evidence, the chargeback might be canceled and the merchant will recoup the profits.
Before fighting a chargeback, the merchant must carefully evaluate what has already happened in regards to the transaction. Past events will dictate future actions.

If the merchant has already issued credit for the multiple transactions, send evidence of the credit to the acquirer.
If credit hasn’t been issued yet, accept the chargeback. Don’t issue credit because the chargeback will have effectively reimbursed the customer.
If the cardholder did actually engage in the transactions (meaning they were valid), send supporting documentation (like sales receipts, invoices, etc.) to the acquirer. These cases might mimic recurring payment chargebacks.

How to Respond Chargeback?

Tips to Respond Chargeback are:

• If the proper Credit has been processed to the Cardholder’s account on all disputed transactions, send all the regarding evidence to acquirer.
• If cardholder participate more than one transaction, provide proper evidence such as sale receipt, invoices of particular transaction and proof of delivery.
• If refund provided to Customer, provide refund evidence to acquirer.
• If merchant void the transactions, inform the acquirer to avoid Chargeback.