When you process credit card transactions all day long, mistakes happen. Unfortunately, those mistakes can cost merchants money in the form of chargebacks. Eliminating processing errors is the surest way to avoid this type of chargeback.
As part of our series on avoiding chargebacks, BluePay has compiled these tips to help reduce your risk of processing errors and the costly fees that follow.
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.
A chargeback occurs when a customer disputes a previously-made transaction, whether due to a stolen credit card or an error on the merchant’s part. For a small business accepting credit cards on a daily basis, chargebacks are unfortunately inevitable and can lead to hefty fees. However, there are precautions that you can take in order to avoid chargebacks.