Chargebacks are undesirable for merchants of all shapes and sizes and they happen for a number of reasons. A cardholder may initiate a chargeback if they didn’t receive the product they ordered, if they received a product that was damaged or did not match the product description, if they were incorrectly billed, or if they did not recognize the charge on their monthly credit card statement.
Merchants can prevent chargebacks by facilitating better communication with their customers. To avoid confusion, merchants should use clear billing descriptors that include contact information. Merchants should also clearly post customer service information on websites and invoices, so customer issues can be resolved directly with the merchant. Taking proactive measures with customer support can cut down on unnecessary chargebacks.
In cases of true fraud, merchants should employ end-to-end fraud protection for transactions. There are varying types of fraud prevention tools available and it can be beneficial to work with an experienced payment consultant who can advice on the appropriate solutions for your business.