Merchants typically have an upfront or rolling reserve that acts as a protection scheme against chargebacks. Using the right payment processor, merchants will also have secure fraud prevention methods in place to protect their business transactions.
What can a merchant do to reduce chargebacks?
- Use a reliable payment gateway.
- Ensure accurate product descriptions: Including the quality, material description and manufacture location.
- Provide excellent customer service: Provide a clear customer service phone number and email and respond to customer inquiries promptly.
- Communicate with the cardholder: Send a payment confirmation notice and advise on shipping times.
- Use tracking numbers: Provide tracking numbers to customers so that they can track their shipments.
- Verify customer information before processing orders: Ensure that the billing and shipping addresses match and check the customer's email and phone number to confirm they are legitimate.
- Use fraud detection tools to identify potentially fraudulent transactions.
- Have a clear refund and return policy that is easy to understand. Make sure that customers are aware of the policy before they make a purchase.
Data elements from cardholders:
- IP Address
- Device ID
- Device Fingerprint
- Account ID
- Shipping Address
- Cardholder address (if different from shipping address)
