Two Steps That Can Cut Chargebacks by One-Third

By Suresh Dakshina, Co-Founder, Chargeback Gurus

There are many factors merchants must consider when evaluating chargebacks, and a majority of them involve intentional fraud: stolen credit cards, well-conceived scams, or intentional attempts by consumers to get something for nothing. There’s no doubting that fraudsters are out there, but sometimes it’s you, not them. More than one-third of chargebacks are the result of something the merchant is not doing to protect itself. In our experience, by examining their internal operations and making improvements, merchants can greatly reduce the number of chargebacks that come as a result of back-office issues, rather than outright fraud.

Managing internal flaws is an area that merchants can easily control in two simple steps: Take preventive action and take corrective action. Do them both, and chargebacks will drop significantly.

Preventive Action

First, many chargebacks can be prevented by

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