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…