Chargebacks exist to protect consumers. A chargeback occurs when a consumer contacts their credit card provider (issuing bank) and files a complaint to reverse the charge. Essentially, if a customer wants to get their money back, they will.
Chargebacks give merchants an incentive to provide quality products and service. They can be a pain to deal with, but they do protect consumers in the end. While it may not be possible to eliminate chargebacks entirely, there are a few things merchants can do to drastically reduce them from happening.
Always Describe Your Products or Service in Detail
If customers don’t know what they’re ordering and they get something they didn’t expect, they may complain and initiate a chargeback. The best thing to do is to include product details like dimensions, weight, etc., describe the construction and materials of the product, and have very clear photos.
Use your Expected Business Name
If a customer sees a charge on their credit card from a business name they don’t recognize, they may initiate a chargeback. Using your DBA (Doing Business As) is a simple, but proven way to reduce chargebacks.
Always be Accessible
If a customer has a question, make sure they can easily get a hold of you. If they can’t reach you, they may get concerned or frustrated and initiate a chargeback. Check that your contact information is current and easy to find on your website. Be accessible in multiple ways like email, Twitter, Facebook, phone, etc. Respond quickly. Good customer service will definitely reduce chargebacks.
Offering refunds is the key way to reduce chargebacks. Chargeback rules always favor the customer. In the end, customers can get their money back if they really want.