Customer service is very important. Always keep customers informed on the status of their transactions. It is key to good customer service and in the end, your profitability.

Always ensure that the delivery of the product was made in a timely manner and that the customer is satisfied with the merchandise or service that they received.

Delayed delivery - If the merchandise or service to be provided to the customer will be delayed, advise the customer in writing or by telephone of the delay and the new expected delivery or service date. Not only is this good customer service, but it also may help avoid a chargeback for "merchandise not received" or "service not performed".

Item Out Of Stock - If the merchandise ordered by the customer is out of stock/back order and the delivery will be delayed or this item is no longer available, advise the customer in writing, or by telephone and offer the customer the option of purchasing a similar item or canceling the transaction. Do not substitute another item unless the customer agrees to accept it. By giving the customer notice and the option to cancel, you may help avoid a customer dispute regarding the merchandise and a possible chargeback for "merchandise not as described", or "merchandise never received." You should always make use of inventory control and proper product management to avoid situations such as this from arising.

Disclosing Refund/Return/Service Cancellation Policy - If your establishment has policies regarding merchandise returns, refunds, or service cancellations, disclose these policies to the customer at the time of the transaction. Your policy should be clearly visible on your web page. Failure to disclose such policies at the time of the transaction will be to your disadvantage should the customer return the merchandise, and may result in a chargeback.

If a refund is warranted, you should issue it in a timely manner and inform the customer that they will see a credit on their next or subsequent statement, allowing time for the credit to post to their account, and that they should contact you if the credit does not appear. Chargebacks are often initiated when customers receive their next statement and do not see the refund posted, however delays in processing by the issuing bank may cause the next billing cycle to be missed.

Requests for Cancellation of Recurring Transactions - If a customer requests cancellation of a transaction which is billed periodically (monthly, quarterly, annually), always respond to the request and cancel the transaction immediately or as specified by the customer. As a customer service, advise the customer in writing, or by telephone that the service, subscription, or membership has been cancelled and state the effective date of the cancellation. Failure to respond to the customer cancellation requests almost always leads to Chargebacks.

Request for copy of the transaction - Should you receive a request for a copy of the original transaction, you should provide as much documentation as possible to avoid the possibility of a chargeback.

Obtain signatures or other proof of identity whenever possible - You should always try to obtain a signature and any other proof of identity via fax to use as supporting documentation should a request for a copy of the original transaction be received. 

We hope these "Tips to reduce chargebacks" document are helpful to you and your business. They have been posted here as a courtesy to our online business customers.

 

.