Chargebacks can have a substantial financial impact on your business. Whether the chargebacks are due to frivolous claims from unscrupulous consumers, or claims that are seemingly justified, the result is the same – loss of money to your company. But there are steps you can take as a business owner to cut-down on those costly chargebacks; here are three:
- Make sure your company descriptor is clear. When your customers receive their credit card statements, your company name listed on their statement should be one that they recognize. Ideally it should be your company name. Many times, if a parent company name is used, or alternate name of possibly another company you own, the customer will not recognize the name and as a result may enter a chargeback claim. This is easily avoidable by making sure your customers recognize your company name on their credit card statements.
- Keep good records of all credit card transactions and contracts/agreements. It’s important to keep information such as amount, date and authorization information regarding all credit card purchases. This way if a chargeback comes in, you can refer back to the actual transaction itself. In addition, if your business deals with contracts, where a customer has agreed to pay a certain amount for a product or service, this will be fuel for you to prove that payment was indeed required.
- Provide excellent customer service. While it may not jump out at you why exceptional customer service will help you avoid chargebacks, when you provide excellent service to your customers they are more likely to value you and your service. If there seems to be something in question regarding their purchase, they may reach out to you first, trying to rectify the situation rather than initiate a chargeback.
Chargebacks will happen, but you can mitigate that possibility by taking precautions and by being the type of company that your customers value and appreciate. And when the chargebacks do come, make sure to check your records, and whenever possible, fight back because after all that is your hard earned money.