How To Avoid Chargebacks

Feb 20 08:25 2012 Gen Wright Print This Article

Avoiding chargebacks is something that you can assume absolute control over.

Unfortunately for most businesses,Guest Posting they are so desperate to get the sale that they put themselves at risk by not paying for top notch solutions upfront. A chargeback is especially painful because it can hurt you on more than one level. For starters, it can break your spirit to have to give that money back while also taking a loss on the item that you have lost in the fraudulent transaction. Furthermore, it sends a message to legitimate customers (or potential customers) that you are a quality establishment to shop at. If you want to avoid these drawbacks of the chargeback, then it is time to adopt a vigilant approach.

First of all, you need to make the necessary upfront investment in technology and infrastructure to discourage and avoid fraud. That could mean establishing an account with a reputable bank identification number database, which keeps current information on all credit and debit cards in the world. Using one of these services, you know right away if there are issues associated with the card. You also know what bank it comes from, who the cardholder is, and what the credit limit is. All this information is vital to you in avoiding chargebacks, and it is not recommended that you skimp on a provider. Be especially careful of ultra cheap databases that do not go far enough in protecting consumer interests.

Secondly, require verification. Even for cards that have no known issues, you want to have a failsafe. Don't simply trust technology to guide you. Force the purchaser to prove their legitimacy. It may sound like you're hounding the customer on the surface, but with all the news that has broken out about identity theft and financial credit card fraud, your customers will appreciate the "hassle." If you run a brick and mortar facility, always ask for a photo ID. If you are strictly online, require customers to type in the three digit verification code on the back of the card.

Finally, emphasize the importance of fraud prevention and customer protection to all your employees. By helping your employees to understand the "why" of what you do, you'll be well on your way to preventing fraud in all its many forms, not just the ones associated with credit cards.

Chargebacks can be greatly harmful to your business, but it helps knowing that you have weapons in the fight against this business nuisance. Make certain that you are using the correct tools, and do not "trust your gut" when you can be trusting something that is more concrete in its provability. Your customers, your employees, and your bottom line will all be grateful for the increased vigilance.

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Gen Wright
Gen Wright

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