If your business receives too many chargebacks, aside from losing valuable, you can potentially damage your standing with the processing bank. If the chargebacks continue, you may even lose your merchant account and face difficulties finding another service provider.
Here are some tips on how to avoid chargebacks altogether:
- Use one consistent company name. If the business name that appears on your customer’s credit card statement is not consistent with the one on your ads and receipts, customers may not recognize the charge, and therefore deny it.
- Don’t charge before an agreement is made. Never charge customers before you come to an agreement, such as agreeing on the goods or service being sold and the price.
- Be cautious about security. Make sure that the credit card is legitimately owned by verifying signatures on the card and receipt, employing address verification and by asking for security codes on phone, mail and internet orders.
- Ask your customers to sign. Always get a signed receipt or signed proof of delivery.
- Protect your merchant ID. Ensure that no one can process transactions without your knowledge or permission by adding security measures.
- Be clear about your policies. Make sure that your customers know about your return policy. It’s always better for the customers to bring their complaints to you rather than their credit card processor.
- Process refunds directly on the credit card. If a customer paid for their purchase with a credit card, never refund them with cash or check. Always match the refund to the original payment method.
In the event of a chargeback, Fidelity offers premiere merchant support to assist you in mitigating the claim. Simply reach out to our customer support team for more information.