Card not present chargebacks are one of the biggest problems for online merchants today, but they don’t have to be so big that a small business owner is unable to continue operating his or her business.
So now the most important question is, how can your business increase merchant chargeback protection in your payment processing system without spending a fortune? There are a few strategies you can try:
- One way to avoid questionable purchases altogether is to allow only domestic transactions, rather than allowing customers to make purchases internationally. Many businesses would rather not do this because they have a large customer base overseas or in Canada, but a small business with only local customers might benefit from this restriction.
- Another way — and one that’s a bit more labor-intensive — is to screen every purchase before the payment is verified and processed in order to leave some room for an order confirmation. Many businesses choose to ask for email or phone confirmation after a customer places an expensive order, while others request confirmation if the credit card address is different from the shipping address.
- Whichever strategy you choose to take, remember that there are also plenty of payment processing services available that can provide you with some extra security. These software systems automatically screen orders before completing the transaction in order to look for card numbers that may have been stolen; other systems provide features like order delivery confirmation, which ensures that an item was delivered to the customer safely and on time, reducing the risk of a complaint stating that the item wasn’t delivered.
So what does your business do to protect your payment processing system against fraudulent charges and subsequent chargebacks? Be sure to let us know!