The holiday shopping frenzy has come to a conclusion, but if you’re a retail business and you accept credit cards, this week will feel as chaotic as the previous four with an influx of in-store returns and the potential for chargebacks. According to risk-management provider Verifi, “chargeback volumes can increase by as much as 50-percent during the holiday shopping season.” This can be prevented and you can reduce chargebacks if you consider these tips if you accept credit cards:
Improve your processes. Streamline workflow to eliminate human error that falls upon you, the merchant, or your customers.
Prioritize. First, take a look at your current processes and streamline your workflow to eliminate human error. Businesses also need to consider best practices in their chargeback dispute resolution process. Does a chargeback costs less than the hours your team will have to take to dispute the chargeback? It may not be worth your time. That being said, too many chargebacks for businesses that accept credit cards could wind them up on the MATCH list.
Practice clear billing. Include your business name, URL, or contact number in the descriptor field on your bills. This makes it easier for customers to recognize a purchase from your store on their statement.
Review your history. If you find yourself facing a large number of chargebacks every holiday season, look at your business operations. Is there something that you can change in your process to avoid this situation year after year? One way to manage an increase in chargebacks is to task a third-party with managing your chargebacks for the holiday season, giving you more time to spend restocking inventory and considering new products for the new year.
No matter what measures you take at your business, it has become easier for consumers to dispute legitimate purchases by going directly to their bank and bypassing your business altogether. When that happens, YOU pay the price – according to a report from LexisNexis, for every $100 in chargebacks, your true cost is estimated at more than $300 of wasted time, massive fees, and loss of goods and services.
Payline helps their customers understand and reduce chargebacks. If you want assistance in avoiding these pesky charges, work with Payline in the new year.
