In today’s digital
world, the number of face-to-face debit and credit card transactions
has decreased. Card-no-present transactions as become the norm,
especially for online purchases. According to a study, the number of
shoppers in brick-and-mortar stores was cut in half within a three
year period. The main reason for this is that consumers online
shopping instead of going to the store. And because of this, the
number of card-not-present chargebacks has increased as well.
Limit Criminal Fraud
Unscrupulous people
use stolen debit and credit cards details to make unauthorized
transactions. More often than not, they choose online shops that
allow card-not-present purchases. It is important to keep an eye out
for suspicious transactions and to validate the transactions before
completing the orders.
Another way to
reduce chargebacks is to use the card providers’ fraud detection
tools. Verified by Visa and MasterCard Secure Code are anti-fraud
detection programs that ensure that the cardholder is the one making
the purchase? The cardholder is required to provide a predetermined
personal identification number during the checkout process.
Limit Merchant
Mistakes
Chargebacks are also
caused by mistakes made by the retailers themselves. Oversights and
errors in business practices can also lead to revenue loss due to
chargebacks. It is important that your return and cancellation policy
is clear and easy to locate. Customers must also accept the policy
before processing their transaction.
It is also important
to make sure that the processing procedure is optimized. Make sure
that you get authorization first before processing any transaction.
It is also important that any transaction is processed once.
Limit Chargeback
Frauds
Chargeback fraud is
also known as friendly fraud. This is the case when customers use the
chargeback system to get a refund. Instead of contacting the merchant
for a refund, they use loopholes in the chargeback rules and void the
transaction through the bank.
One chargeback
solution to this problem is to improve customer service. Customers
are more likely to go through the traditional refund process instead
of a chargeback if the retailer is easy to deal with. Another
solution is to have a no questions asked policy for returning items.
If you are offering digital goods, then make sure that you have
additional security measure.
These are some of
the chargeback management solutions that will reduce card-not-present
chargebacks. Retailers can consult chargeback experts to help
maximize profitability, and protect one’s merchant account.
Get more information
Contact us +1 855-465-4723, and visit website
www.chargebackexpertz.com
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