News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Protect Your Business by Learning These Top Chargeback Risk Factors

Protect Your Business by Learning These Top Chargeback Risk Factors

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Through hands-on research and real-world experience, Chargebacks911® has become an authority on chargeback prevention and risk mitigation. We’ve identified more than 106 different potential chargeback triggers tied to seemingly innocent oversights.

If you’re trying to fight a growing chargeback problem, check out this list of common risk factors, all of which can cause recurring problems. Fixing these issues can go a long way toward helping prevent chargebacks.

Confusing Policies

Customers can’t adhere to policies they don’t understand. Avoid chargebacks by thoroughly explaining shipping and return policies and placing links to those policies in prominent locations on your site.

Lack of Contact Information

Your contact information—customer service phone number and email address, links to your social media profiles, etc.—should be clearly listed on every page of your site.

Slow Response

Over 40 percent of customers expect a response to any inquiry within an hour. Slow responses can cause trouble…and no response is even worse. Invest in the staff and resources to respond in a timely manner.

Not Tracking Deliveries

Order tracking reassures customers that their purchases are on the way. Requiring signature confirmation for delivery of expensive, high-ticket items proves you shipped the item and the customer received it.

Vague Product Descriptions

Online customers must be able to rely on your product descriptions. Detail each item by color, size, functions, capability…anything the customer needs to know. Include plenty of clear photos or video, too, showing the item from various angles.

Not Verifying Customers

Eschewing antifraud tools like CVV verification or AVS could be a costly mistake. These tools are simple to use and can provide powerful evidence in a representment case. In certain situations, using them can even help prevent some chargebacks altogether.

Weak Password Standards

To protect customer accounts, insist on complex passwords that require a combination of cases, numbers and symbols.

Misleading Billing Descriptors

Default billing descriptors may include confusing information. For clarity, check your descriptor as it appears on billing statements and customize it to reflect your business.

Not Validating Digital Goods

To validate downloads, store digital products in the Cloud. Attach a unique product key to each purchase, then email the key to the purchaser. You’ll have tangible evidence showing the customer accessed the download.

Downplaying Disclaimers

Hiding disclaimers in the so-called “fine print” is counterproductive. Disclaimers should instead be clearly visible near the top of any relevant page. Same goes for your terms of service: an obvious link should appear on every page, and agreeing to the terms should be mandatory prior to check out.

Outdated Plugins

Browsers, plugins and other pieces of software are updated constantly. By not keeping current, you could be leaving yourself vulnerable. Stay on top of all updates and implement them as soon as possible.

Not Adopting 2FA Solutions

If you’re not already, consider accepting mobile payment tools like Apple Pay and Google Pay. Not only are they increasingly popular with customers, they also offer 2-factor authentication–making them a great fraud deterrent.

The Biggest Mistake of All: Doing Nothing.

All the above mistakes can lead to chargebacks…but there’s no bigger chargeback mistake than trying to ignore them.

Chargebacks cost merchants roughly $31 billion in direct fees, liabilities, and lost revenue in 2017—and that’s not factoring in all the money lost to false declines, return fraud, and other related issues. You can’t afford to let simple errors keep causing chargebacks. Talk to us about how easy and effective our exclusive Merchant Compliance Review can be.

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