Chargeback is a recurrent issue for high-risk accounts as its activities result in frequent customer complaints. Additionally, the industry they work in may also have a high number of fraudulent activities, which results in chargebacks initiated by the customer for illegitimate reasons. The chargeback is a nuisance to your account, whether for legitimate or fraudulent reasons, as it impacts your business’s reputation, stating it as a high-risk account.
Whatever the reason, a chargeback is a common problem for businesses, especially in high-risk industries, such as electronic or adult payment processing businesses. The following article will help you understand how to prevent chargeback issues to your account.
Having good customer service
Many of the chargebacks may be due to your customers being unsatisfied with your products. Having helpful customer service available for your customers at all times will significantly help them understand their issues with the sales and provide valuable solutions and even refunds to reduce the problems of a chargeback. Have the customer representative available 24/7 on call or chat feature on your website to effectively listen to complaints and initiate corrective measures promptly according to the customers’ requests.
Fraud protection procedures
Adopt fraud protection procedures. Do not accept orders without initiating a multifactor authentication. You must check the orders from international customers to see if they belong to an actual consumer or potential fraudster. Transactions with higher amounts should also be scrutinized before accepting. Have a system in place to check the status of the credit cards being used to ensure they are not associated with frequent chargebacks. All these methods will significantly reduce the chances of a chargeback due to illegitimate reasons.
Do not play with consumers’ expectations
Consumers should not be given a false sense of expectation when buying the products. When advertising your products in a way that the consumers will be attracted to, be sure to add everything that is true. Don’t create an elevated expectation regarding your product, as consumers are most likely to be dissatisfied with the purchase and initiate a chargeback. Present correct information about your products on the websites so that the consumer knows exactly what they are paying for, reducing the chargeback issues for your business.
Use tools to prevent chargebacks
There are many ways that you can initiate a dispute when a customer opts for a chargeback. There are tools in the market that automatically dispute with the customer bank when you get notified of a chargeback. This way, the bank will resolve the matter systematically and only accept a chargeback if the customer’s claim is valid.
Keep customer details safe
It would help if you had a constant log of the details relating to each customer so that you can easily understand which customer initiated the chargeback. This way, you can effectively dispute the claim as you will have all the information stored regarding their purchase and all other vital details.
All these methods can help your high-risk company to avoid regular chargeback issues. These practices are adopted by most of the companies in the adult industry and other high-risk business industries. Consider following the information shared in the article to reduce the chargeback issue faced by your account. They should be followed by every account, regardless of whether they are high risk.