With the growing number of consumers leaning towards the convenience of purchasing online, more and more card-not-present industries are currently experiencing a boom in profitability. Who doesn’t want to save on gas, on time, on parking fees, and whatnot, right? You can just select a product from the comforts of your home and expect the package in a few days.
As much as how easy this may sound to our dear consumers, what they oftentimes forget to worry about is the risk it poses. You shop online without actually getting a hold of the product, without even trying it on, without inspecting every part and every nook of it. More often than not, it would only result into settling for a product you thought so highly of only to disappoint you with its poor quality or its actual presentation that’s way too different from how it was marketed online. Then you’ll soon realize, what a waste of money and then you decide to ask for a refund.
What a typical scenario, right? In the event a customer decides to ask for a refund or claims the product delivered was broken, this poses a major (MAJOR) risk to the supplier. This is when chargebacks happen.
As you know whenever you purchase something using your credit card, the credit card company makes sure to protect you from any type of fraud a merchant might commit. Although the main goal is to protect the consumers and make sure that they get the product or service they have paid for, some customers tend to abuse these credit card chargebacks.
Companies need to be more vigilant concerning these issues. To protect your business from high rates of credit card chargebacks, one must be able to keep track of all the documents concerned in the transaction. A company should always maintain proof of all credit card orders. Always keep print or e-mail record of charges because you will definitely be asked the necessary details concerning your transaction. This is most especially important to online shops and businesses that entertain card-not-present payments. These industries are much more at risk and harder to maintain compared to physical stores.
Another important factor would be the courteous and reliable customer service you are offering. Make sure to always treat your clients in spades. Entertain them if they have questions, answer in the politest way possible and always assist them all throughout their shopping experience.
Overall, don’t worry about chargebacks. As long as you provide a good documentation of your clients’ order transaction and show excellent customer service, you will not only win the trust of your customers, but also build good will towards your business such that they would less likely to request refunds.