An article by American Express offers some solid advice on precautions retailers should take to prevent losing business if unscrupulous customers claim they never received delivered orders.
Small businesses are generally hit hard by chargeback fraud. Aaron Press, Director, Payments & eCommerce for LexisNexis said, “We do know that small merchants invest less in fraud protection and are more likely to be defrauded because they have fewer ways to catch things in the process, And fraudsters know this.”
In fact, experts say only 54% of merchants take the proper steps to ensure that a chargeback is not fraudulent. So what are the most effective ways merchants can prevent chargeback fraud?
Here are 5 ways merchants can prevent chargeback fraud.
- Know Your Customer
- Verify Information
- Get an Autograph
- Keep Good Records
- Know When To Seek Help