Top 8 tips to avoid customer chargebacks

On the credit card and bank account chargeback is the number a way online dealers of fraud are affected. This occurs when a buyer for a fee from their account due to one be removed for two reasons:

(1) your card was stolen or used without their permission.

2. The customer is not satisfied with the quality which were that you delivered the or believes that you your obligations in the provision of the goods or services not life.

Unfortunately, the occurrence of repayments is at an all time high and shows no signs of up to leave. The life blood of an online business your payment is that almost always includes credit or debit cards accept the problem can be a business in a relatively short time in the ruin. Sure, there are honest people who use this process for legitimate reasons. There are also many that this process scam entrepreneurs use money that you are legitimate. When a chargeback occurs, it is quite possible that the dealer will not even get their goods back, so that not only is the merchants from the money they were paid for a product, but they no longer have the product either!

According to a report of Merchant 911 credit cards stolen over 90 million in 2007. 90 Million! This led to almost $4 billion loss for e-commerce companies. Online shops have not the ability to verify or authenticate the cardholder's identity, so that they are far more susceptible to problems with repayments. As mentioned, you have to the question of lost money from the sale, which were lost, the lost charges you calculated your processor for the transaction as also the accusation back and shipping costs, you have created to get the product to the customer. While this beautiful all sounds bleak, it abandons a number of basic protection strategies that you and your employees can use, most disturbing questions worker use.

My top 8 tips to avoid customer chargebacks include:

1. Check addresses

Make sure you use the address verification service (AVS), most credit card processors in their credit card offer software interface set ups. With most systems, you can dictate what happens with orders, the delivery address, the billing addresses do not match. Everything from rejection of the order to put and keep so that you or someone the address with the customer can review staff. This option does not disable what you do. I've caught many fraudulent orders on the AVS system.

(2) Be questions for the CVV2

As with AVS, sure, that you keep this option be also turned on. This option requires that a customer in a "card verification value" on the back of the card - usually 3 or 4 numbers enter. The customer has the card in the hand and cannot continue with the order, unless they do.

3. Make sure process is only approved for sale

If a transaction - for whatever reason rejected is not process. Many believe that the rejected transaction was a mistake and processed the transaction anyway. Don't do it.

4. Check the e-Mail addresses

Always essential and e-Mail address of each customer. If an e-Mail address looks strange, shy not, call to verify the customer to the address before the purchase order processing.

5. Watch out for excessive orders

While it may be exciting, to get a huge order, take note! Buyer, the stolen credit card use will acquire very large number of the same product. Process the order none of the usual major orders, to you with the customer by looking up the phone number for the billing address and called you can check.

(6) Connect your customers

If you have a back or other delay in the delivery of an item, call or e-Mail your customer know and give you the possibility to terminate the order and get to a refund. This is much cheaper than having to treat a chargeback-be.

7. Proper records

Take care, printed copies of all online ordering. In addition, you must all e-Mail communications from customers for the purchase of were kept from you. This information could be useful if a chargeback fighting.

8. To comply with certain merchant account policies

Whatever you use that for a credit card processor - take a bank or PayPal for example - you know their chargeback policies and make sure, follow their recommendations for the prevention and management of repayments.

Credit cards is one of the these necessary evils of doing business online because it is the easiest and fastest way for your customers to pay you. But, as shown in this article, the process with risk can be affected. By I above have provided the 8 tips, which, you should accept your exposure to this on the most worrying aspect of credit card can significantly limit in your company.

Warren has been writing articles and producing online courses since 2005. He specializes in online business problems and currently operates a number of sites in a number of different niches. You can check out of his latest website here: Yanmar tractor parts , which has a large number of Yanmar tractor parts

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