Todd Sumamno
We have all heard of the famous Chargebacks, but the great majority of people are still uncertain what they are strictly and can be prevented?
First, it’s essential to understand that chargebacks stand for a transaction where an issuing bank transfers funds from the merchant’s account to a customer’s account. Once a customer escalates a dispute against the merchant, chargebacks are very likely to encounter.
It’s crucial to understand that chargebacks may occur only if the client owes monetary remuneration for a disappointing product or service. Usually, customers are looking for legal advice from chargeback companies to recover their lost funds because of today’s boundless problem of numerous unlicensed brokers and online investment scammers.
In most cases, e-commerce merchants can find chargebacks which have to be aware of many different types of chargebacks. Besides that, it’s essential to know how to prevent them from happening.
However, before we get to the point on how to prevent chargebacks, it’s good to know how the chargeback process works in the first place.
The process of a chargeback – understand the basics.
One must know the chargeback process and all the necessary steps to understand how to prevent them later. Once a chargeback gets filled, the issuing bank checks the authenticity of the complaint and either initiate the chargeback or dismisses it.
It’s up to the merchant to choose if he wants to dispute the chargeback and provide indisputable proof of the validity of the transaction. In the end, in case the chargeback is upheld as valid, the amount that has been disputed will be deducted from the account of a merchant and credited to the buyer’s invoice.
You have to understand that the chargeback process is very tiring since, in most cases, it lasts for weeks. That’s the main reason why it is very advisable to prevent chargebacks before anything.
We have provided you some of the best ways in which you will be able to keep chargebacks in check.
Best ways to prevent chargebacks
For anyone who wants to learn what are the best ways to prevent chargebacks, here are our top three picks:
- Email your customers for confirmation – with confirmation emails, and you can send shipping details of the order to avoid an invoice.
- Provide detailed information to all your customers – provide exact images and descriptions for the products you have listed.
- Watch out for eventual red flags – make sure that all transactions involving unusual bulk orders, multiple orders for expensive products, or multiple orders, are placed within one short period.
What are the most usual reasons for filing chargebacks?
In most cases, customers are filing for chargebacks for these particular reasons:
- Credit card issues – unauthorized credit card transactions are the most common cause of chargebacks.
- Technical errors – incorrect or duplicate billing can lead to chargebacks as well. Errors in the technical processing cause a declination of a transaction by the issuing bank.
- Refund, shipping, and shipping issues – chargebacks can also happen if customers are not satisfied with the product or service they’ve purchased or if the customer fails to receive them.
Brittany
