This Chargeback Strategy Will Save You Money in 2021
If you run a business that accepts online payments, you’re probably familiar with the term “chargeback” by now. In fact, it’s one of those things you don’t want to hear about because it has a huge impact on your business.
But chargebacks eventually happen at some point and they do for different reasons. It could be due to clerical error, failed expectations, or even friendly fraud.
Whatever the reason is, a chargeback could really hurt your business if you don’t know how to protect yourself from it and deal with it properly. If you are a high risk merchant, then chargebacks will have to be your number one priority in 2021. But if you ask any entrepreneur for advice about chargebacks, most of them will probably tell you about one very important strategy: good customer service. Here’s how:
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Be Careful With Payment Errors
Merchant error is one of those highly preventable factors that lead to a chargeback. Train your employees to double-check every payment transaction to avoid silly mistakes like double billing or charging the wrong transaction amount.
By being more careful in processing payments, you will not only prevent chargebacks but also make customers feel that you really care for them.
Be Clear About Product Descriptions
A lot of online shops put misleading descriptions on their products to entice customers to buy from them, but they don’t know the consequences of failed expectations.
When a product arrives at your customer’s doorstep and it’s not what he expected, chances are, he will file for a chargeback and never trust your business again. So why take the gamble when you can be honest about your product descriptions?
Be precise with measurements, colors, dimensions, and every important detail about your product so customers know what to expect when they buy from you.
Be Approachable
A lot of customers file a chargeback because they feel that they weren’t given the attention that they needed from the store they purchased from. Remember that you need to keep your chargeback rates below 2% to avoid being classified as a high-risk merchant.
Make sure that you include your contact information such as your email address or telephone number in your product packaging, website, and social media accounts so customers can easily contact you whenever they have complaints about your product. This will help prevent them from contacting their bank instead and filing for a dispute.
Be Consistent With Advertising
Sure, you want your advertisement to stand out so customers will choose you over other stores, but make sure that you don’t make promises that you can’t keep. Focus your advertising efforts on offering useful information to your customers and describing to them how your product could be the solution to their problems.
Keep This in Mind in 2021
Chargebacks are inevitable, so they say, but there are ways to keep them as low as possible. After all, you’re not only losing money when someone files a dispute against your business, but you’re also losing the trust of consumers you tried so hard to convince to choose you over other businesses.
Make the effort to improve your customer service and you’ll surely enjoy more benefits than you can imagine.
Also Read: All You Need To Know About Chargebacks
