What Causes Chargebacks?
According to the LexisNexis Study, 98% of e-Commerce merchants face chargebacks on Card Not Present transactions. It is estimated that chargebacks will cause more than $100 Million in revenue loss for e-Commerce merchants worldwide. With the rising online marketing costs, it is a necessity for e-Commerce businesses to prevent chargebacks. Chargeback prevention will also increase your brand awareness, customer retention and ROI, all of which are vital for your business success.
While some chargebacks are made in an attempt to receive merchandise without paying for it, some are done due to poor marketing or ineffective business practices.
Some of these practices may include the following:
- Making unreasonable and/or false claims about a product in order to increase sales
- Not providing customers with a clear terms and conditions policy before they purchase an item
- Not shipping products on time
- Having poor customer service
- Making it difficult for customers to return products and/or receive a refund
- Designing and selling poor quality products
Simple Steps to Prevent Chargebacks and Increase Your Bottom Line
Preventing chargebacks due to ineffective marketing or poor practices is much easier than preventing chargebacks from fraud. However, it will still take some work. You will need to carefully track the cause of each chargeback and examine why the chargeback occurred. Could it have been prevented? If so, how?
There are some things you can do now to prevent chargebacks from occurring. Here are a few areas of your business that you may want to closely examine to stop chargebacks before they happen:
- Ensure that all marketing claims are legitimate and supported by the product
- Perform quality testing on all products to ensure that they are of high quality
- Source products and materials from trusted vendors only
- Clearly display complete, easy-to-read terms and conditions
- Ship all products on time with detailed invoices
- If products cannot be shipped on time, notify the customer as soon as possible
- Have adequately trained customer service staff
- Have a clear return policy
- Have a relaxed refund policy
- Collect feedback from your customers about your product, website user friendliness, and customer service. Work on improving your product, website and processes to meet your customer demands.
Asking customers to complete a customer satisfaction survey can help you determine areas that may need improvement. Doing so may not directly prevent chargebacks, but it can improve your overall business practices and image. Customers who have a positive perception of your business may be more inclined to work with you to resolve their issues first, instead of simply canceling the transaction.
How Chargeback Gurus® Can Help You Prevent Chargeback Fraud
We have assisted clients in a number of different industries for more than 14+ years in the area of chargeback prevention. We will help you create a 360 degree bulletproof solution that will protect your e-Commerce business from chargebacks. Using our streamlined, perfected process, we will help you identify your vulnerabilities and improve your brand awareness, customer retention, and back office processes.
Our bulletproof solutions are designed to help prevent chargebacks for our clients.
- We analyze the root causes of your chargebacks and determine how to improve these areas to prevent future chargebacks.
- We integrate the right software to protect you from both consumer and affiliate fraud.
- We create bulletproof processes to improve your back office operations and productivity, while also ensuring that all departments in your company (in-house or outsourced) meet their service requirements.
- We integrate a Chargeback Prevention Alert System into your company process to help you prevent chargebacks before they occur.
- We create a detailed checklist to monitor all of your back office operations every day to make certain everything is operating as it should.
- We create and implement performance tracking so that you can see when an area needs further improvement.
If you are looking to prevent chargebacks and increase your bottom line, call us today at (866) 999-3758 or click here to talk to our Chargeback Prevention expert.