August 24, 2016
CPN USA: Chargeback Tips for Small Merchants
Jan. 6, 2014
A Phoenix-based merchant services provider has taken the post-holiday period to offer small businesses a list of tips on how to limit chargebacks. For e-commerce and other small merchants that are not getting good advice on chargebacks from their payment provider or are not able to afford a knowledgeable consultant, CPN USA’s list of tips can be helpful.
The company urges small business owners to improve their branding so customers are more likely to recognize the store’s name on a credit-card bill. A clear refund policy will mean fewer customers escalating a disputed charge directly to their credit card’s issuing bank. If customers on a recurring-billing plan dispute charges, CPN said it might be wise to stop the subscription service and cut ties with that customer to reduce future errors . If a merchant does not have a comprehensive antifraud solution, it can still take steps to identify suspicious transactions —at least verify the identity of customers on big purchases where the billing address does not match the shipping address. Require signatures on deliveries and respond promptly to retrieval requests from issuing banks.
“A proactive approach to chargeback prevention might just save your business,” said Patrick Hare, digital marketing manager at CPN. “At the bare minimum, it can make you less of a target for time consuming paperwork and dollar-hemorrhaging disputes.”