Credit card chargebacks can occur for various reasons and unfortunately, they have become increasingly popular these days. With that being said, there are ways you can prevent them and maintain a better business credit score. It's important to know more about chargebacks and what they are whether you run a small or medium-sized business. Frequent chargebacks don't only damage the credit score of your business, but you also have to pay a fee every time it happens. Read on to learn everything you need to know about credit card chargebacks.
What Are Credit Card Chargebacks?
Simply put, credit card chargebacks happen when a client requests a refund on a certain product or service because it cannot get it from your business directly. It's a type of forced refund that can happen when a customer contacts his bank with questions about a transaction. If a merchant has a plethora of chargebacks on their record, they might need to pay a higher price for processing fees or their account might be shut down completely.
Why Chargebacks Happen
Chargebacks happen for various reasons. For example, customers who don't receive the products they ordered might file a chargeback. That's why it's important to always deliver goods on time, so clients don't feel enticed to do a chargeback. Secondly, fraudulent activity might result in chargebacks as well as processing errors. In some cases, entering the wrong credit card information can also result in a chargeback later on.
Avoid Chargebacks by Keeping Your Promises
As mentioned earlier, many chargebacks happen because a customer didn't receive the ordered goods on time. You can mitigate this problem and avoid a lot of chargebacks by keeping your promises. If you said that you'll deliver on Tuesday then do so. If you said that certain services will become available in 24 hours then go the extra mile to keep your promise. As a result, clients trust you more and you minimize the chances of getting chargebacks.
Make Customers Trust You
Another great way you can avoid chargebacks is by establishing a trustworthy relationship with your clients right from the start. This means that you spend time answering their questions, explaining their options, talking about the return policy, shipping details, and so on. If you do this, your customers will have a much better understanding when it comes to your business and the goods they buy from you.
As a result, they might be more inclined to call you if they have a question or if there is a problem with a product bought from you. They know that you will do your best to help them and they might not go for a chargeback.
Nobody likes when chargebacks happen and one way you can stay on top of these transactions is to learn more about them. Millennium Payments specializes in credit card payments and everything related to them. Get in touch with one of our experts today to learn more about chargebacks and how you can securely implement credit card payments on businesses of all sizes.