Being an entrepreneur is both a challenging and rewarding experience. Unforeseen circumstances, such as chargebacks, can feel intimidating and put a damper on day-to-day dealings. Fortunately, we have solutions to help you overcome the hurdles that chargebacks can throw your way. Read on to learn more about chargebacks and how Merchantech can support your business.

1. MERCHANTECH
HOW TO MINIMIZE CHARGEBACKS: WHAT
CAN YOU DO TO REDUCE CREDIT CARD
CHARGEBACKS?

2. What is a Merchant Account?
Being an entrepreneur is both a challenging and rewarding
experience. Unforeseen circumstances, such as chargebacks, can feel
intimidating and put a damper on day-to-day dealings. Fortunately,
we have solutions to help you overcome the hurdles that
chargebacks can throw your way. Read on to learn more about
chargebacks and how Merchantech can support your business.
All parties involved in payment processing services, including banks,
card networks, and others, constantly work to reduce fraud and loss.
Chargeback procedures are merely one type of mitigation.
Merchants need to be made aware of what a chargeback is, why they
occur, what to do when they do, and how to avoid them when
possible. We will share everything you need to know about credit
card chargebacks based on what we've discovered through years of
experience as payment processors in the industry.

3. How Can Merchants Prevent Credit
Card Chargebacks?
When there is a problem with a purchase that has been made using
your credit card, and you are unable to resolve the issue with the
merchant, you can initiate a chargeback with your bank as a tool to
try to get your money back.
If the merchant or service provider who charged you doesn't give you
a refund, you file a dispute with your credit card company. Your card
company investigates your claim after receiving a chargeback
dispute and gives the retailer who handled the transaction a chance
to respond. If necessary, your issuing bank may also involve the
credit card network (Visa, Mastercard, American Express, or
Discover).
The disputed charge will be refunded to the cardholder if the issuing
bank's investigation rules in favor of the cardholder or if it rules in

4. How Can Credit Card Chargeback
Affect Your Business?
Chargebacks associated with credit card processing can be a major burden for
business owners. Chargebacks are, at best, the result of misunderstandings or
confusion (such as when a consumer doesn't recognize your company name). If
you can demonstrate that you provided the goods or service in question, you may
be able to appeal these decisions, but this process can be time-consuming and may
not be worthwhile.
Chargebacks, at worst result from consumer fraud (i.e., the consumer intentionally
lies to avoid paying). They might make it more difficult for a company to keep a
merchant account open and continue to accept credit card payments. A company's
reputation may suffer if its chargeback rate is high (above 1%), and merchant
account providers may levy heavy fines or even close the merchant account.

5. Why Is It Important to Reduce
Chargebacks?
Chargebacks were developed as a means of defending consumers
against fraudulent transactions. But before we can comprehend how
crucial it is for a business to lower chargebacks, we need to consider
the factors that lead to them in the first place. Sometimes, the
person requests a chargeback because of a transaction they do not
recognize. Sometimes even if the transaction was legitimate,
customers filed chargebacks for other potential reasons such as the
ones listed below.
 Not recognizing transaction on their bank statement
 The transaction appears to have occurred twice (duplicate)
 Despite cancelling their subscription, they were still charged Item
not matching description, or not receiving item
 Name of business in transaction was unknown to the customer
 It is crucial to comprehend the causes of chargebacks and what
can happen if your chargeback frequency is high to decrease them

6. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
1) Emphasize Customer Service
With competition in e-commerce rising, customer service is the
defining factor that distinguishes successful sellers. The days of
having an e-commerce website that lists frequently asked questions
are over. Customers anticipate speaking with a live person who can
promptly and accurately respond to their questions. Businesses
should provide live, round-the-clock help.
The fewer purchase errors made by consumers, who could file
chargebacks, the more service and support there is. Increasing
customer care capabilities may cost money in the short-term, but
the long-term benefits i.e fewer chargebacks and more satisfied
customers make it worthwhile.

7. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
2) Ensure That Your Billing Descriptor is Easily Identifiable
The merchant descriptor, or statement descriptor, is the name
customers will see on their billing statement. Customers are more
likely to file a fraudulent chargeback if they cannot identify the name
of a business.
For example an organization called Greenwich,but has a merchant
descriptor as Peter England will likely incur a chargeback. Including
your doing-business-as name, website, and phone number in a
suitable billing descriptor can help avoid these unnecessary
chargebacks.

8. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
3) Confirm All Credit/Debit Cards Billing Info
If the card is expired, the transaction will never be approved. Make
sure to set up fraud controls to verify credit card billing zip code and
shipping address. Use the address verification service offered by
your Payment Processor and Gateway to ensure the billing address
and shipping address match.
If a credit card billing address is in the USA and the shipping address
is in Nigeria, you should be cautious about shipping the item before
taking additional steps to verify the transaction is legitimate,
especially if it's an order from a new customer.

9. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
4) Have Clear Return and Refund Policies
Establishing a transparent return policy is an important tool in
communicating your terms of service with customers. Return policies
should be prominently displayed at checkouts and listed on your
website.
Be detailed, include the return window, restocking fees, and
exclusions in your return policy.

10. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
5) Customer Contact Information
Ensure that your customer contact information is accurate and
current. Verify the client's mobile phone number, email address, or
any additional information relevant to the order by contacting the
customer. Many customers anticipate receiving a confirmation email
or SMS on their mobile devices.
Taking the time to validate credit card information not only gives you
peace of mind, but also protects the customer from fraud.

11. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
6) Comply with Credit Card Processing Regulations and
Requirements
Overcharging, double billing, or erroneous billing amounts can also
lead to unnecessary chargebacks. Although human error is
inevitable, you can reduce mistakes by following safe card
processing procedures.
Use printed receipts or your payment gateway to double and triple-
check the amount charged to the customer. Only run the card once,
do not try forcing a transaction by running it multiple times in hopes
of getting an approval. Instead, request another form of payment.

12. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
7) Keep Detailed Information About Your Transaction
Consumer chargeback fraud is more prevalent than ever. It has
become increasingly easy to make a purchase, (particularly online),
and then report it to the issuing bank as a fraudulent transaction. As
a result businesses lose billions of dollars each year in lost goods,
transaction reversals, and chargeback costs.
Merchants typically lose these types of disputes , because many
companies do not keep straightforward records. A thorough and
legible sales receipt can serve as a reliable piece of evidence in case
of a chargeback dispute.

13. Eight Ways to Reduce Credit Card
Chargebacks for Your Business
8) Use Tools to Prevent Fraud
Cases of fraud, where thieves use stolen credit card information to
make purchases also result in chargebacks. Use fraud prevention
tools offered by your payment processor and/or Gateway that make
sense for your company, and protect yourself and your customers
against fraud. These resources may consist of the following:
Anti-fraud databases warn retailers of the following
1. Suspicious ordering activity brought on by botnets, a network of
malicious computers.
2. Credit card numbers linked to previous fraud.
3. Rapid orders involving multiple credit cards.
4. Geographic discrepancies exist between the computer used for
the purchase and the user's location.

14. Thank You
Visit us: https://merchantech.com/
Email: csr@merchantech.com
Phone no: 1-800-276-3724
Address: 230 S. Sterling Drive #260 Mountain House, CA
95391