A dark side of running an eCommerce site is getting a chargeback. But what is actually a chargeback?
Well, it occurs when a customer calls their credit card service provider and disputes about any purchase he/she has done with their credit card on your site.
Claims are made that they never authorized the purchase or that the product came not as expected.
Then the credit card company then contacts the merchant provider and funds equal to the purchase done are frozen in the merchant account.
Once the ruling of the case is in your favor, the fund is released back but if it goes against you, then it will be deducted permanently from your account and transferred to the customer’s credit card account.
No retailer wants to experience this because it is a waste of your money, time resources, and energy.
The reason behind it is that you need evidence to prove that the transaction was legit.
Here are some tips to deal with chargebacks and lower them from taking place.
- Full-fledged product and FAQ pages
You can enhance the chances of getting a chargeback ruling in your favor with comprehensive product and FAQ pages.
Make sure your site has well-described products with proper details.
- Updated inventory
Often when a product goes out of stock before you get the chance to inform your webmaster to pull it down from the site.
While receiving a mail stating that the product is out of stock, some customers call their credit card service provider and initiate a chargeback rather than asking for a refund.
- Answer all queries instantly
When a customer fails to get his/her query answered they initiate a chargeback with the help of the best chargeback sites. To avoid this, answer all queries as soon as possible.
- Provide all supporting evidence
Send mails, order forms, tracking numbers to fight chargeback in the shortest time period. Delaying this evidence could make the ruling close against you.
- Deal with the situation professionally
A chargeback is stressful but you need to deal with it professionally and be polite with the customer.
Lastly, every transaction is important so pay close attention to all and don’t leave any of it incomplete.