Chargebacks are a major headache for any business. Anytime anyone decides to dispute their purchase with a credit card company, the sale is reversed and charged back to the merchant, leaving them out of pocket. If you have been wondering how to reduce chargebacks in your business, read on for some practical tips.
1. Send Confirmation Emails
One of the best ways of reducing chargebacks especially if you have a high risk account like Cbd merchant account, is to send confirmation emails to your customers. These confirmations should include a detailed list of what they have purchased, the total purchase price including shipping costs, and any taxes that may apply (e.g., VAT). If you mention delivery dates or tracking information in this email, make sure it's accurate too. Otherwise, there will be a risk for confusion later on when customers start tracking their order at home and find discrepancies with what was mentioned in the email.
2. Provide An Easy Return Policy
Chargebacks can be a tough pill to swallow for the e-commerce business. They're expensive, time-consuming and they tarnish your company's reputation with customers. Plus, there are often hefty fees associated with them. To keep chargebacks from your Cbd merchant accounts, it is important to consider how you handle returns in your store policies. When customers don't like their purchase or change their mind about an order before receiving it, they contact customer service who then gives the buyer one of two options. They either allow them to return the item for a full refund including shipping costs or send out another product instead that better suits what they want (or something different entirely). But if this process has been made clear from the get-go, you may find yourself less likely to see a chargeback.
So, what should you do to make sure customers know about the return policy? * When listing items in your store and adding them to a customer's cart, include the time they have before returning an item for the full purchase price (so if it is within 14 days of ordering, they are allowed their money back). * Include this information on receipts so there are no surprises when the buyer wants to get something refunded. Alternatively, just let them know via email or phone call after the order has been delivered
3. Provide Top-Notch Customer Service
The customer service team is the key to retaining customers, and a high-quality product experience will have more of an impact than trying to force them into buying something else. It's always important for customer service representatives to be friendly and welcoming when answering phones or responding to online chats. If they are rude, it can increase the likelihood that someone will cancel their subscription because they'll see this as an indication of never getting a solution if there was ever a problem with billing. Moreover, your Cbd payment processing or other payment processing should be fast.
4. Reach Out To Customers That Make Suspicious Orders
You can tell that an order is suspicious when the customer has made a purchase with no or incomplete contact information. You may want to reach out and ask for more information about these purchases, so you can verify that your customers are legitimate and also protect your business from fraud. You can do this by verifying that their credit card numbers were given willingly at checkout.
Chargebacks can wipe out your profits and leave you in debt with less chances to recover financially. It is important that you incorporate chargeback prevention into your general marketing strategy and take the necessary measures to prevent them from happening at all costs. These practical steps can help.