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December 19, 2019

How to Prevent Chargebacks

Giving customers the ability to pay with credit cards is great for their shopping experience as well as your business. However, it does carry a level of risk, especially around the holidays. Credit card fraud can lead to chargebacks, taking a toll on your finances. Luckily, there are steps you can take to help prevent chargebacks. 

Pay attention to details 

Chip cards: If you accept chip-enabled (EMV) cards, ensure they’re properly dipped; don’t revert to swiping even if the customer asks, as this could be a fraudulent card. 

AVS: Use address verification service (AVS) and get the correct response when keying in transactions. Be sure to ask the cardholder for the correct information in the case of an invalid match. 

Receipts: Check that the information on the receipt matches the card and cardholder’s information. 

Ask questions: Don’t ignore your gut feelings – often times if something doesn’t feel right, it’s not right. Ask yourself and your customer for additional details. Have we worked with this customer before? Is this type of order normal for my business? Why are the shipping and billing information different? 

What if I’m an online merchant? If you have an online business, there are additional precautions you can take to help prevent chargebacks. For example, use IP intelligence to verify that the IP information matches a US-based cardholder and not an anonymous overseas address. Device fingerprinting uses device information and reputation scoring to validate the transaction. 3D Secure uses a three-domain model to validate purchases made with credit or debit cards. You can also use tokenization, during which account and card information is replaced with a secure token identifier, or SSL, which encrypts communication between customer devices and payment solutions. Geolocation is another option – this compares the locations of the cardholder and the customer. 

credit: Nathan Dumlao on Unsplash

Work with experts Feeling overwhelmed? There’s a lot to know! Fortunately, working with experts is a great way to better understand what you need to know and do. As an established provider in the payment processing industry with more than 30 years of experience, we’ve earned the respect of our clients as we move forward with trends and technology without disrupting our superior service. We’ll help you streamline your payment process while offering expertise, reliability, and cutting-edge technology. 

Dealing with chargebacks can be a huge headache and cost your company money. By being proactive and keeping an eye on transaction information, you can help reduce the likelihood of chargebacks.