4 Ways to Reduce Credit Card Chargebacks

4 Ways to Reduce Credit Card Chargebacks. Credit card chargebacks — wherein shoppers purchase products with a credit card and then contest the charge from the credit card issuer — are an always-present threat to ecommerce merchants. 4 Ways to Reduce Credit Card Chargebacks Streamline shipping operations. Alternatively, merchants that offer same-day shipping or next- or two-day shipping see fewer chargebacks, usually. It’s customer service that often separates the successful sellers. Do not harass customers who want to return products. Sometimes chargebacks are the result of true fraud, where criminals use fraudulently obtained credit card information to make a purchase. Guard against fraudulent chargebacks with a suite of customized fraud prevention tools that make sense for your business. Merchants can work with their payment processor or other advisor to discover the best combination of tools for their business. Some solution providers, such as Verifi and others, offer alerts or notifications when a chargeback is initiated, giving the merchant time to resolve the dispute with the cardholder rather than navigating through the convoluted chargeback process.
Credit-card chargebacks plague most ecommerce companies. There are steps that merchants can take, however, to reduce chargeback risk. One is using a third-party service, such as Ethoca, that connects data from card issuers and online merchants to reduce fraudulent orders, and fraudulent chargebacks.
Credit card chargebacks plague most ecommerce companies. There are steps that merchants can take, however, to reduce chargeback risk. One is using a third-party service, such as Ethoca, that connects data from card issuers and online merchants to reduce fraudulent orders, and fraudulent chargebacks.

Credit card chargebacks — wherein shoppers purchase products with a credit card and then contest the charge from the credit card issuer — are an always-present threat to ecommerce merchants.

In this post, I’ll describe four ways that merchants can ease the burden of chargebacks.

4 Ways to Reduce Credit Card Chargebacks

Streamline shipping operations. Fast shipping is important for all merchants, but especially for direct marketers, infomercial merchants, network marketers, and multilevel marketers. Purchasing from these companies is largely impulse-driven, driven by attention-grabbing ads. So making a customer wait to receive his items can increase return and chargeback rates.

Decrease your time to ship and you’ll decrease the amount of time you give customers to change their minds. It’s that simple. A product that takes weeks to ship will typically experience more chargebacks.

Alternatively, merchants that offer same-day shipping or next- or two-day shipping see fewer chargebacks, usually. These merchants discovered what should be obvious: Give customers what they want, when they want it. Customers want the item when they place the order, not weeks later.

Emphasize customer service. Ecommerce is increasingly competitive. Shopping cart platforms are inexpensive and sophisticated, facilitating thousands…

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