How to Prevent Chargeback and Frauds for your Business
If you are a business owner who sells things online, one of the huge complaints you may have is the online fraud or chargeback fraud. In fact, the chargebacks go beyond limits; you will find that the credit card processors tend to look at your business suspiciously. If you do not want your image to be tarnished, it may be a good idea to take things under your control.
The tips here should assist you in that direction.
What causes chargeback?
A chargeback can happen for several reasons. It can happen due to the defective items in your inventory or even be caused by the fraudulent transactions. Some other issues can be the duplicate processing or human errors in entering credit card details.
Invalid credit card numbers and CVV number or even Ops can result in chargebacks being issued on the transactions.
Yet another way you may chargeback is because of the chargeback fraud. The customer orders a product, and after the purchase is done, they request a chargeback from the card issuer. This will cause the purchase to stay with the customer, while the card issuer forces a chargeback on your account.
How to avoid Chargebacks and frauds?
There are several options you can opt for the fraud prevention in terms of chargebacks. A few of them can be
Check out for the best card not present transactions
You can ask the card holder to come up with as much information as possible. This will establish them as the authorized card holder, and thus, chargeback fraud can be avoided effectively. To begin with, you are advised to use a reputable card processing system and fraud screening service such as FraudLabs Pro. Make the card holders provide their CVV without fail.
Choose a payment gateway that assures a seller protection feature
Seller protection feature can help you take care of online frauds effectively when opting for the online payments. You can set the rules to define the charges that are automatically approved. A few other options would include blacklisting a few accounts, covering the losses due to chargeback to an extent and managing the disputes through your payment gateway.
Make sure your payment descriptor is properly mentioned
The payment descriptor is what would appear on the statement of the customer. If it looks different from what your customers actually see you as they can place a request for a chargeback. Make sure you are known to customers as.
Make it a habit to validate every one of your transactions. This can lead to an enhanced protection of your payments and goods deliveries. If the chargeback happens due to wrong or substandard products, you may need to ensure that your inventory is free from any sort of defect. Make it a habit to validate every transaction that comes your way.
Winning a chargeback as a business owner may not be an easier option. If you are into the SaaS and opting for the credit card online payments, it may be especially difficult. However, opting for the right options to prevent the card frauds can be one of the perfect options for your requirements.