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Protect Your Business And Do Something About Unfair Chargebacks

The law that protects customers whenever they purchase items using their credit cards is known as consumer law. If a fraudster steals their credit card information and the merchant refuses to refund their money, the owner can call his credit card company in order for him to get his money back. Even though this is good news for the customers, the same thing cannot be said for the merchants.

Chargebacks are perfectly legal and the customer has every right to request for one, however, too much chargebacks against a merchant can be the downfall of his business. This is because the fees and fines from banks will accumulate and the merchant has no choice but to pay for each one. This is the least of their problems because the bank can even terminate the merchant’s account which will leave his business disabled. This is without a doubt, an alarming problem for merchants because the bank won’t allow them to open another account for the next five years.

According to the chargeback company, merchants can easily avoid this by simply reducing the number of chargebacks they receive. Although there will always be customers that would take advantage of chargebacks just to gain free items, this doesn’t mean that merchants should just take this abuse.

In this article, allow me to share with you some tips that you may use as your guide when protecting your business against unfair chargebacks.

1. Your business must have an excellent customer service.

According to the chargeback company, if the merchant would like to prevent any chargebacks against him, he should see to it that his business offers superlative customer service. Remember that excellent customer service should be the foundation of your business. You have to invest on low-cost communication options for your customers such as a landline number or a web chat. It will also benefit your business a lot to train your customer service team so that they can easily handle difficult customers.

2. Be clear when it comes to the items your customers are buying.

According to the chargeback company, if you want to reduce the number of chargebacks you receive, see to it that you provide your customers with a good product description. If you make sure that all of your products have a detailed description, you will definitely avoid any misunderstandings.

3. Be on the look out for fraud.

According to the chargeback company, most chargebacks are caused by fraudulent activities. It is a good idea to train and teach your employees so that they cane easily detect any fraudulent transactions.

4. You should implement a secure payment system.

Since online fraudsters are always one step ahead of the merchants, you need to be keep up with them. According to the chargeback company, the merchant will benefit a lot from implementing a secure payment system. As the merchant, it is your responsibility to secure your network systems in order to protect your cardholders.