A chargeback is a mechanism designed by the credit card companies to protect their card holders against unscrupulous merchants! It allows a merchant to pay with a credit with confidence that if the product is faulty, does not arrive, does not meet the expectations sold by the merchant, the customer can reach out to their credit card company and initiate a "dispute" for the money spent.
Common Customer Dispute Categories:
No knowledge Dispute - The customer tells their credit card company they do not recognize the transaction and initiate a dispute to get their money back.
How to avoid this type of dispute:
- Make sure the name of your business is spelled correctly with your merchant processing company and shows correctly on any receipts, invoices & credit card statements.
- Make sure that the name your customer knows you as is showing on customer credit card charges.
- Do Not set up your credit card company with your legal entity name unless it is the same name your customer see on your website/storefront and business card.
- Example: Store name is Frank's Deli but your processor set your account up under the legal entity name of Smith's Enterprises LLC. This will immediately raise a flag to customers when they do not know that your store's legal entity name on the transaction is actually Frank's Deli!
Product Returns Dispute - The customer tells their credit card company that they wanted to return the product and could not.
How to avoid this type of dispute:
- Make sure that your company's RETURN POLICY is prominently posted in the store (near the cash registers), online before checkout, and on ALL RECEIPTS!
- Make sure your company has specific Warrantees/Guarantees also posted in stores and online.
- If the customer is entitled to a REFUND, make sure they are PAID within 7 days of receipt of the product.
Product Not Received Dispute- This customer has already paid for an item to be delivered and it does not arrive.
How to avoid this type of dispute:
- Make sure that the customer receipt gives an expected delivery date of their purchase.
- Send a receipt to customer along with the Shipping Company's Tracking information
- Stay in touch with the customer via email/text to give any shipping delay from the manufacturer or shipping company.
- Make sure your shipping company delivers to the correct customer location and takes a photo of the delivery.
Want to work with a merchant processing company that sets you up properly to NOT lose Chargeback Disputes? We also help all our merchant fight their disputes! Give us a call today!
No comments:
Post a Comment