How to Reduce Your Risk of Processing Error Related Chargebacks
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.
Tips to Avoid Processing Error Chargebacks
Process all transactions within timeframes specified by the Card Organization. Life in a small business can be hectic, but failure to process credit card transactions within the agreed upon timeframes can create big problems for business owners.
Make sure all transactions are processed accurately and only one time. If a transaction is processed more than once, immediately void the duplicate transactions or issue a transaction reversal or credits. In the event both transactions are valid, include any documentation to clearly indicate these are distinct transactions and not for the same merchandise/service.
Process credit transaction receipts as Credits and sale transaction receipts as Sales.
Obtain a valid Authorization Approval Code prior to processing all transactions
Do not alter transaction documentation without the cardholder’s agreement.
Review batch credit card processing before submitting to ensure no transactions are duplicated. Do not submit credit card batches for processing more than once.
Minimizing chargebacks due to processing errors will help you protect your bottom line. Following the steps above is a good way to cut down on chargebacks.