Credit card fraud is a very real risk for consumers and merchants alike. Nobody wins when credit cards are used fraudulently. For merchants, credit card fraud chargebacks can be a double whammy on the bottom line.
As part of an ongoing series, BluePay is sharing advice to merchants who accept credit cards on how to avoid credit card chargebacks. IfToday, we’re focused on fraud-related chargebacks.
The BluePay blog is running a series of articles about Chargebacks, those costly fees that can eat into a merchant’s bottom line. While avoiding chargebacks altogether is unlikely, there are steps merchant account holders can take to reduce your risk of incurring chargeback fees.
Cancellations and returns are a common reason for chargebacks. Doing your due diligence can help you avoid these common chargebacks.
Tips for Avoiding Chargebacks for Cancellations and Returns
If you’re a business that accepts credit card and debit card payments, avoiding chargebacks when processing payments can save you money. Chargebacks can be costly: You’re responsible for the chargeback, chargeback fees, and related costs. Fees and fines assessed by the Card Organization can range from $25 to $150 or more.
In a credit card transaction, both the cardholder and the credit card issuer have the right to question or dispute a transaction. When such disputes go unresolved, merchant account holders may be subject to a Chargeback, which can hurt your bottom line as a business.
There are a few standard electronic billing and invoicing software programs that everyone has heard of — the ones that the average entrepreneur might be tempted to toss into his or her shopping cart (real or virtual) when making the initial purchases needed to set up a business.