When taking payments online you have to be prepared to deal with fraud and chargebacks.
What is a chargeback?
When a customer has an issue with a charge on their credit card, they can contact their bank and dispute the charge. The bank will then make a chargeback.
A customer might dispute a charge for one of the following reasons (read further details):
- Product not received
- Product unacceptable
- Credit not processed
Dealing with a chargeback
This is the typical process to deal with a chargeback is as follows.
The Mobi2Go Payments chargeback process is similar.
- The customer disputes a charge with their bank.
- The customer's bank makes a chargeback, and contacts you through your payment provider.
- Your payment provider takes the disputed amount from your account.
- You gather evidence to figure out whether the charge was valid and send this to your payments provider.
- Your payment provider sends a response to the customer's bank.
- The bank reviews the evidence.
- Within 60 days, the bank resolves the chargeback. If you win, your payment should be returned. If you lose you are likely to be charged a bank chargeback fee.
How to mitigate the risk of getting chargebacks
- Ask your customers to sign card receipts on delivery or pick up. Make sure the signature on the card matches the signature on your receipt.
- Use security camera footage in your store to provide evidence.
- Brush up on customer service. Ensure your staff are educated on the processes and procedures to avoid point of sale (POS) fraud.
- Use easy to recognise billing descriptors. If your customers can easily identify your store at a glance, they are less likely contact the bank.
- Spend time writing accurate and detailed product descriptions. Ensure your customers know exactly what they are purchasing and when they can expect to receive orders.
- Ensure your store contact details are up to date on your site. Customers are more likely to contact you first if you are available.
- Be open to offering your customers refunds. If someone is not happy with your products or service, they are going to get their money back one way or another.