The most important thing we can tell you about chargebacks is that it is far better to prevent them than to fight them. Best practices include having a transparent and easily accessible refund policy and resolving any issues with customers as quickly as possible. You can read more of our tips on preventing chargebacks here and here.
Here are some additional tips:
- Get signatures on all receipts and proofs of delivery
- Make sure the customer's card hasn't expired
- Resolve issues quickly and politely, refunding money and accepting returns as necessary
- Carefully key in any manual transactions to prevent mistakes
- Train your employees on proper credit card handling procedures, including voice authorizations
- Have a fraud policy and ensure it is followed by all employees
- Make sure the information on your receipt matches that of your business. If you change your business's name or move to a new address, update your receipts immediately.
- If you process international transactions, make sure you are using the proper currency and that this is reflected on the receipt
- If a customer claims they returned merchandise but they never attempted to do so, keep meticulous notes for your chargeback rebuttal
- Modify elements of the transaction to try to get an authorization to go through (ex., lowering the price)
- Override a declined transaction manually. Follow the approved voice authorization protocol.
- Batch your transactions more than once
- Alter transaction documents after the transaction is completed without obtaining consent from the cardholder
- Keep billing a customer's subscription or recurring service account once a chargeback is initiated
- Hold onto a transaction for more than seven days after you receive voice authorization
- Separate a large transaction into several smaller ones to try to get the authorization to go through
There are some additional steps some types of business can take to protect themselves further. Visit these links to read more:
- Retail businesses
- Ecommerce businesses
- MOTO (mail order/telephone order) businesses or businesses who primarily key in transactions
- Recurring billing/membership-based business
Above all, don't worry! We will be there to guide you every step of the way. You can always call us at 408-295-8360 if you have any questions.