Chargebacks were originally introduced as a means of reassurance for customers when making card payments. Although well intended, they have become time-consuming and costly for businesses to deal with, so how do you reduce them? Here are three ways you can minimize chargebacks:
1. Be sure customer experience is positive
Customer service should be a cornerstone of any business. If an unhappy customer calls in to complain about a product, provide your customer service team with parameters in which they can try to make that customer happy. Be kind, understanding, helpful and deal with issues in a timely manner to resolve disputes before they turn into chargebacks.
2. Ship your product in a timely manner
In a world where Amazon has spoiled us all with 2-day shipping, consumers expect their goods quickly. Merchants need to be aware of this mindset when deciding on shipping and delivery times. If a customer grows impatient waiting for a delivery, they may file a chargeback. To avoid this, be sure that shipping details are clearly stated on your website during checkout. Display shipping costs and delivery timelines to help manage expectations. Bonus points if you can provide real-time tracking information to keep customers in the loop!
3. Simple Return Process
Returns and exchange policies should also be clearly visible for all customers. It’s better for a customer to contact you directly for a refund rather than begin a chargeback claim, but you can also offer credit towards another product, partial refunds in addition to/instead of full refunds. Your returns policy should include a simple step-by-step process for how to request a refund so the customer doesn’t get even more frustrated. Remember, customer experience is key!
Too many merchants see chargebacks as an unavoidable cost of doing business. However, the average merchant can reduce chargebacks by 40% or more with the right strategy. At Salus, we know that chargebacks can be difficult to prevent and handle, that’s why we are here to help. If you have questions or would like to learn more about how to avoid disputes, don’t hesitate to reach out. Our team will be happy to work with you!
