Avoid ChargebacksAvoid ChargebacksAvoid Chargebacks

Credit card usage is expected to grow by 65 percent over the next five years* Managing card-not-present chargebacks is always painful.  

Avoid Card Fraud-Related Chargebacks: 9 Essential Tips for All Merchants

January 9, 2015

Avoid ChargebacksAvoid ChargebacksAvoid Chargebacks

Credit card usage is expected to grow by 65 percent over the next five years* Managing card-not-present chargebacks is always painful. Now, add fraud-related chargebacks into the mix. We’ve now entered into dangerous territory for any size business. Understanding how to handle any chargeback, regardless of the type, will go along way to minimizing lost revenue and time.

The TSYS Merchant SolutionsSM team that supports merchant services recommends the following tips to every merchant:

  1. Be clear with your return policy, as well as your shipping policies, and make sure that your customer clearly understands them before transacting with you.
  2. Include return policy and contact information on customer receipts.
  3. Request and document the name of the card issuing bank as one of your purchasing policies.
  4. Always send confirmation e-mails to your customer, which contains the invoice. Once a product is sent, follow-up with another confirmation e-mail providing shipping details and tracking information.
  5. When the shipping address is different from the billing address, try to confirm the information and exercise extra caution.
  6. Beware of customers who ask to change the shipping address after the order is placed. Fraudsters may use a legitimate address to obtain a successful charge but later ask that products be shipped elsewhere.
  7. Make sure to ask for a customer’s CVC, street address, and zip/postal code. Consider rejecting charges that fail the CVC and zip/postal checks.
  8. Beware of multiple accounts using similar email addresses or the same credit card.
  9. Beware of multiple charges on one credit card to the same email address in rapid succession.

TIP: Consider instituting a 24-48 hour shipping delay for high-value orders or shipments to non-verified addresses or first-time customers.

Of course, if you need more than just advice on how to decrease your chargebacks, we’re here to help! Please feel free to reach out and contact us at 1.800.228.2443.

*2014 The Nilson Report

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