Chargebacks: Why they happen and how to avoid them
Chargebacks are often a cost of doing business but there are ways to help minimize them and save your business on costs and associated fees. Watch this video for tips and steps you can take to help avoid chargebacks.
Transcript: Chargebacks: Why they happen and how to avoid them
Chargebacks — transactions which are disputed and deducted from your merchant services account — are often a cost of doing business.
You can take some steps to minimize them and save your business on costs and associated fees.
Chargebacks happen for many reasons.
Maybe a customer’s card was charged for the wrong amount.
Maybe they don’t recognize the store name on their statement or remember the purchase.
Or maybe they didn’t authorize the purchase at all.
All of this can lead to chargebacks.
Luckily, you can minimize them a few ways.
First, work with your payment processing provider to make sure that your company name is easy to recognize on a customer’s card statement.
Second, if you haven’t already, upgrade to the latest payment technologies such as chip cards for an added layer of security.
Next, look for anything unusual such as a customer providing different phone numbers, billing names, and addresses for online purchases, or signature mismatches on in-person purchases.
If you’re accepting a payment over the phone, repeat back the billing address and card security code to ensure you’ve collected the correct information.
And if your payment processor requests information about a recent transaction, provide the information as soon as possible.
Follow these tips to help reduce chargebacks, and be sure to work with a payment processor that can offer you 24/7 support and guidance.
Visit wellsfargo.com/chargebacks for information about Wells Fargo Merchant Services.