If your business focuses on e-commerce and you rely on online sales for a good portion of your revenue, it goes without saying that you need to have secure payment gateway services, complete with merchant chargeback protection for card not present transactions, if you want to ensure that your business isn’t hit with claims stating that you need to cover the costs of fraudulent charges. Having a secure payment processing service is definitely the cornerstone when it comes to this type of digital security.
But let’s be honest here — hackers have gotten through even the best security systems and dishonest customers have found loopholes in legal documents, no matter what industry the business is in or how small it is. When it comes to protecting your finances and your business as a whole, you need to have a multifaceted approach to merchant chargeback protection.
So what can you do on your own to eliminate the high risk of too many card not present chargebacks? There are few things:
- Keep detailed records — and keep multiple copies of these records. Dishonest consumers may try to swindle businesses and get their transactions reimbursed, stating that a product was purchased fraudulently or the item was never delivered. The best way you can protect your business is to keep records of every transaction and every delivery.
- Make sure to be wary of international purchases (if you do any business internationally) — it’s common for fraudulent purchases to come from international IP addresses, and many businesses catch fraudulent charges because they notice that the billing address is domestic but the delivery address is international. It helps to keep an eye on these purchases and to double-check the details.
- Speaking of double-checking, it’s also a good idea to confirm a purchase with the customer before processing their payment, either over the phone or through an email they have provided. This might be a hassle if you’re processing many small transactions each day, but even if you just double-check bigger purchases, it can increase your merchant chargeback protection quite a bit.
Now we’re interested in what you have to say — are these tips good, or did we leave out anything important? Feel free to leave any comments or questions in the form below! Read more articles like this. Helpful info also found here.