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chargebacks

If there’s a word that most Internet salespeople quivers at the sound of, it’s a chargeback.

A chargeback is a dispute over a charge – usually an unauthorized or fraudulent charge

– between the customer and the company.

The merchant must reimburse the full amount along with any credit card fees.

This amount is automatically deducted from your merchant account.

There are three main problems with chargebacks that affect the merchant:

1. they lose the payment – and even the inventory if it was sent, 2.

the fees associated with each chargeback are between $ 15 and $ 25, and worst of all

3 the chargebacks don look good and you could lose your merchant account.

Mercantile services are rather picky; they do not simply distribute accounts to anyone.

The customer may be dissatisfied with the product or there may be a duplicate order

or it could be a fraud.

Whatever the reason, it is critical for your online business to keep chargebacks to a minimum.

One way to block charges is to block fraudulent orders by verifying that the order is legitimate.

This could mean that it may be necessary to call each customer to confirm the order.

You do not want to accept an order if it appears fraudulent.

Be suspicious, because eventually receiving too many chargebacks will damage your profit line.

If, on the other hand, the customer is simply dissatisfied with the product, call and send them an e-mail.

Ask them what they do not like about the product. Ask them if there is anything you can do for them to satisfy them.

If they still seem reluctant to give up the chargeback, your last resort would be to ask them if they would not mind dropping the chargeback and you can offer them a full refund.

Most people would not mind this option.

You’ll find that a simple phone call to the upset customer can actually change things in your favor.

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