How Can Your High-Risk Business Prevent Chargebacks?
Every business must have the ability to accept credit cards. It is not only a critical component to win more customers but it also boosts your revenues in the long run. However, credit card payments come with their own risks. If merchants find themselves on the receiving end, transactions becoming time-consuming, facing costly chargebacks, the rates of such chargebacks can increase considerably.
When the chargebacks are high, businesses find themselves unable to keep a traditional merchant account. In such cases, they need to investigate high-risk merchant accounts in UK. If things worsen, they may find themselves on the edge of losing the ability to process credit card altogether.
While all the merchants should be concerned about minimizing their chargeback rates, they need to be vigilant at the same time. High risk merchants can also prevent chargebacks and if you have already signed up for high-risk business credit card processing, here are some ways by which you can prevent chargebacks.
- Ensure the customers know what they are buying
One of the most common causes of chargebacks is customers receiving products or services that are significantly different from what was described on a merchant’s website.
High-risk merchants can minimize these claims by including them on their product pages. As an online merchant you must do the following:
- Put pictures of the product from multiple angles.
- Videos of the products in use.
- Complete and comprehensive product descriptions featuring dimensions, materials, colors, quantities, and any defects.
- Keep notifying customers about recurring billing charges
An easy way to avoid chargebacks for subscription-based services is to not require a customer to enter their credit card details for the free trial in first place. On the other hand, merchants do not want to lose the sales at any cost, and customers can often forget that they had signed up for a subscription sometime back.
Thus, merchants can send a reminder message to the subscribers about the recurring bill before the subscription expires. This way merchants can prevent surprises when they get their credit card statements and it also protects merchants if the customer files a chargeback saying they didn’t know about a charge.
- Provide realistic, accurate delivery estimates
Once the customer has placed an order, they want to know how and when the item will be delivered to them. In case the order doesn’t reach the customer on time, there is a high risk of chargeback. Thus, it is mandatory for the merchant to communicate to the customer about an accurate delivery date and time and the method of delivering the items
These days, tracking numbers of parcels are easily available and merchants can share such tracing numbers to keep the customers satisfied.
- Give extra care to custom orders
Today, customers have high expectations from online purchases. For instance, if they purchase a high value item like a piece of jeweler, they will demand extra care for their order. The care and concern increase when they order customized gifts for their loved ones from the website. Customers are always excited to know how the final piece will turn out.
In such cases, merchants should ensure that the customers are happy. When the customers are satisfied, the chargebacks are automatically reduced. When it is about custom orders, merchants must take care and try to show customers how the final piece is going to look like.
- Make billing descriptors recognizable
Customers are always interested to look at the billing details. So, merchants should ensure they show clear billing descriptors to the customers. These descriptors are short descriptions on a credit card statement describing the merchant from whom the purchase was made. Sometimes, customers shall initiate a chargeback when they do not recognize any billing descriptor.
These chargebacks are common and to avoid them, make sure the descriptor is the same as it was used on the website customers are purchasing from. You can use your URL as a descriptor so that the customer knows where the money went.
- Provide good customer service
This goes without saying, with better customer service you are going to have retained customers for a long time. No matter how good your products are, you will be liable to a chargeback if you cannot offer good customer service. Whether it is general feedback on your website or a customer’s email or a phone call, you must be attentive towards it. The more you pay attention to your customers, the lesser are the chances of a chargeback.
- Implement a robust fraud prevention solution
Lastly, you should be ready to face online frauds and install a robust fraud prevention mechanism. This mechanism will prevent fraud and reduce the number of chargebacks, which happened only because the customers were frauds.
We are sure with a little cautiousness and by following the tips, even high-risk businesses can manage to accept card payments easily by preventing the chargebacks on their own. Nonetheless, the high-risk merchant accounts in UK are here to boost your efforts.
Jacob Allen is the author of this article. For more information about high risk business credit card processing please visit the website.
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