If your business is taking an increased number of online or mobile payments, it’s even more important than usual to take steps to prevent chargebacks.
Here are some suggestions.
Include contact information (a phone number and an email address) on your website, shipping materials and all other communications.
Ensure your name is being accurately sent to the customer when the sale is completed. Use a company name or brand the customer will recognize.
Obtain an evening and daytime phone number as well as email address from the customer. This is highly recommended if the billing and shipping address is different and if the sale is a high dollar amount.
Terms and Conditions
Make sure your terms and conditions are updated with your current refund policy. Especially if you recently added any changes due to COVID-19.
Confirm that your customer is aware of, and agrees with, your terms and conditions.
After a sale has been finalized, send the transaction details, including the terms and conditions to the customer.
Transaction Best Practices
Keep all the details about the transaction and be prepared to provide them in the case of a chargeback. This includes the customer agreement with the terms and conditions.
Obtain a valid AVS (address verification system) confirmation on every sale. Proceeding with a sale that doesn’t have a valid AVS increases your risk of a chargeback. You might encounter this on:
- larger-than-normal orders
- several units of the same item
- overnight shipping
- orders where the billing address and shipping address don’t match.
These are all red flags pointing to a potentially fraudulent order.
Always obtain an authorization from your processor, never accept one from the customer. An authorization code should only be given electronically when you proceed with the sale.
If there is a problem obtaining an electronic authorization number, a voice authorization should be used as a last resort and only by the voice authorization number-1-800-228-1122
Process returns/refunds as quickly as possible. Also let the customer know that their issuer may take a full billing cycle to display the return/refund on their statement and/or website.
When processing a refund, provide written communication with the date it was completed and amount that was refunded.