Banish chargebacks through communication
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hargebacks result from disputes between cardholders and merchants. They have always been problematic, but they are part of the business climate and cannot be ignored. And, if merchants follow certain business practices, they can operate virtually chargeback free.
The sooner you address the subject the better it will be for your business.
Keep in mind that an ounce of prevention is the best cure.
From time to time, merchants’ goods and services will not live up to purchasers’ expectations.
A solid customer service policy explaining the terms by which merchandise can be returned, and in what condition, is essential. Customers must know what they can and cannot expect.
Such policies should be disclosed upfront in a straightforward format and easy-to-understand language. This is true regardless of whether a sale is face-to-face, MO/TO or via the Internet.
A chargeback begins when the cardholder contacts the issuing bank and complains about a transaction. The issuing bank sends the complaint to the processor, which then contacts the merchant in the event of a retrieval request or chargeback. Depending on the reason for the action, there may be a temporary reversal of funds in the merchant’s account.
Merchants need to understand a chargeback initiates with the cardholder’s interpretation of what has happened. It is the merchant’s responsibility to provide proof disputing the chargeback.
When responding to chargeback notices, merchants must adhere to specific time frames. Otherwise, they will lose by default.
Once a dispute arises, the merchant involved must provide a detailed written record of what transpired. The merchant should convey concise facts supporting a rebuttal. Complete, clear responses to the card issuer are vital to the process.
Merchants should understand that setting clear policies for returns will lower the amount of chargebacks they experience.
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Bill Hoidas
District Sales Manager
Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
John 3:16 For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.