Chargebacks may have a short-term or long-term impact on your business. With each successful chargeback, you forfeit the transaction’s proceeds, any goods you sent, or services you rendered, and you almost always owe your acquirer a chargeback fee. You’ll either have to pay higher processing fees or lose your merchant account frequently, with far less warning than you’d like if your chargeback ratio (the ratio of chargebacks to total transactions) hits a specific level. You can lower your chargeback risk by giving clients accurate information about your goods, so there are no misunderstandings when they receive them.
Additionally, you should outline your return and shipping policies on your website so that customers know what to expect before making a purchase. To prevent customers from assuming their delivery is lost if it doesn’t come when expected, you should additionally give tracking for shipments. Keeping thorough records of your transactions is another way to prevent chargebacks, which will ultimately harm your organization. The more data you keep on each transaction, the better. Keep the cardholder’s name, transaction amount, date, and other essential information. You can also add information like delivery confirmations, client IP addresses, emails from customer service confirming receipt of the goods, phone numbers, and many other things.
