How to Reduce Chargebacks for your High-Risk Business

How to Reduce Chargebacks for your High-Risk Business

Imagine yourself unsatisfied with a product purchased because it was nothing like it was described. Or maybe you’re unsatisfied with the service you experienced. Possible ways to get compensation could be replacements or even a refund. However, to get those you have to be willing to have an argument with your card issuer or the business to have the problem solved. This is where the chargeback process comes in the picture. Credit card policy is heavily based on the consumer – not the merchant. A chargeback is essentially money back guarantee which is part of a consumer protection policy. Chargebacks are beneficial to consumers, but carry a large burden for you as a business. For high-risk businesses, they can be very hard to deal with. It is an important part of the business strategy to understand precautionary measures for chargebacks and eliminating them.

We at Agapay are here to help you!  

With any chargeback, a lot of energy and money can be wasted in handling the transaction dispute. This time may seem like a waste but it is not. This can impact funds in the short term but can cause losses and are considered failures that stain the business image and standing with banks.

We at Agapay have come up with different strategies you can implement to reduce or even alleviate chargeback disputes:

  1. You cannot please everyone. But, selling products that are truly and accurately described can reduce chargebacks as it likely meets up the expectations of your customers. Don’t oversell!
  2. Describing and implementing of your refund or return policy must be evident on your website and in most of your advertisements. We at Agapay actually require this before we even approve you specifically to protect you before this all happens! To win over chargebacks, customers must have access to their rights when they purchase your products or services. You must define a set of criteria for consumer protections and deal with them in a timely manner.
  3. It is simply good business (ethical) to be responsive to your customers’ needs. Communicate with your customer and answer their requests i.e. requesting cancellation of recurring payments or change of billing date in a billing period. You should state everything in writing.  
  4. Fraudulent transactions are of course subject to chargebacks. Also have your records updated. Have a system in place to find receipts based on date, customer name, amount, verifications, etc. Good records are a necessity.

Chargeback disputes are costly and create more workload both for the customer and the business. Choosing Agapay and using our gateway decreases the chances of losing chargeback fights. Furthermore, we have partners that can assist you in your fight with consumers that are trying to take advantage of the system that is already in your favor. If you need help, we are here.

Want to setup chargeback protection or need help mitigating a dispute? Call us today!

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