There are different reasons why businesses have chargebacks during the holidays. However, if companies can handle these things beforehand, it would make the process so much easier. Let us delve into some of those reasons and see how they can be changed.
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If one of your customers does not receive the ordered item or the delay is too long, your customer can either ask for a refund or contact their card issuer directly and you will have a chargeback. In order to avoid this, make sure you have a shipping system that is simplified, fast, and includes tracking numbers.
If someone sees a charge from your business on their account, but they haven’t bought anything from you, it could mean there has been a fraud. This person will call their credit or debit card company for reimbursement. In this case, there is not much you can do about it. Your only option is to provide the customer with a refund.
If your website is malfunctioning or your customer mistakenly entered an item they did not want when checking out, they will likely dispute the transaction. So make sure you are using a decent POS system with product display and eCommerce system with a user-friendly checkout process.
Sometimes your customer will request a refund from their card issuer because they are not satisfied with a product or service for one reason or another. Chargebacks for professional services are the most difficult type of case to deal with when there is dissatisfaction because the quality of service is subjective. Therefore, you need to run your business in the best possible way, with quality and customer experience as your top priority.
Company Name Unknown
One of the most common causes of a chargeback during the holiday season and at other times is that the name of the transaction that appeared in the customer’s account is unknown. For example, the name of your company is “The Blockbuster Store” and your customers see the name “Company GRIM” in their bank accounts. Use a clear and simple business name to avoid confusion among your customers.
In some cases, the customer may have seen a similar product cheaper elsewhere. If one of your customers sees the same or similar product for less than one of your competitors, they may request a refund or chargeback. To prevent this from happening, consider offering a “payback time” or price readjustment policy. That is how Ethoca chargebacks are handled.
Double billing is when the payment is duplicated or the customer believes they have paid twice for the same order. If the customer is wrong, send proof and ask the customer to reverse the chargeback with his bank. If you have made a mistake, reimburse your customer.
Forgot to Cancel Subscription
Recurring payments make the process of subscribing to a service easier for both the merchant and the customer, but they also come with the risk of chargebacks. To avoid this problem, make sure the dates, amounts, and the agreement are clear with your client. Plus, make sure the unsubscription process is easy for your customers.
As you know, the holiday season brings its own challenges when it comes to handling chargebacks. Create a seamless process to make it easier for both yourself and the customer.