In this high-tech & fast-paced world, credit cards have become one of the most common tools of payment for buying goods and services online. A credit card chargeback also known as reversal occurs when a credit card holder (online buyer) requests its credit card issuing company to reverse a transaction that has been already cleared and processed. The greatest fear and anger for merchants has got to be “chargeback”. The most common reasons of such chargeback’s is that the goods received by the buyer are not up to the buyer’s liking in terms of quantity, quality, measurement, shipment of wrong/ damaged product, delay in shipment etc. The other most common reason of chargeback is the unauthorized and fraudulent usage of credit card number.
E-commerce retailers who accept credit card payments for the goods and services provided by them run the risk of being liable for charge backs. These are also known as explicit cost which cannot be avoided. We at Paymundo recommend following best practices which can help you to minimize these charge back’s.
Provide complete details about the product. Being an online retailer you must provide the complete and detailed description about your product like color, price, measurement, shipment details, weight etc so that there remains no ambiguity in the mind of buyer. what will it actually cost to him and in how many days the ordered product will be delivered to him.
Provide quick response. Clear communication with your customer is a key to any business success. Being an online retailer, you must provide your contact information like phone number, email address, Skype id etc. In case of any query from customer, reply it promptly and politely.
Keep record for communication. Before placing an order, most of the online buyers communicate with online retailers through telephone, emails, etc for product price and availability confirmation. Being an online retailer, you should keep record of such communication as much as possible because it may help in you in future in case of chargeback.
Make order confirmation through Email/phone call. Once the customer has placed his order on your store, send an email or make a phone call to the customer that you have successfully received his order for his desired product and it will be delivered to you within certain time period.
Retain proof of delivery. Alwaysship the goods to the buyer’s address mentioned on order form and keep the proofof shipment i.e. courier slip so that shipment of goods can be tracked online in future.
Publish your return policy. Being an online retailer you must mention return policy on your e-commerce store. It must clearly state that if the buyer is not satisfied with the product, in how many days product can be returned back to the seller and who will bear shipment charges etc.
By following the above mentioned practices, clearly credit card charge backs can be minimized.
PAYMUNDO
( Your global e-commerce solution provider )
info@paymundo.com
PAYMUNDO 