Hi, everyone; my name is Rick, and with 5 Star Processing. And I’m going to go over ways to mitigate your chargebacks. Chargeback mitigation is when someone calls your bank and disputes the transaction or services you provide as a business owner so that it can be a fraud. It can be services not rendered. Maybe someone tried to purchase a ninja blender, and they suddenly got a samurai blender. Perhaps they did get the service, which was different from what they expected. It’s when a customer calls their bank again and disputes the transaction. Now we’ll go over ways to mitigate those chargebacks and ensure that money doesn’t come out of your business account as a business owner.
So one of the things you can do is make sure that if you have your clients set up on any auto-billing, so if you’re a business that auto those customers every single month, notify them a few days before letting them know that money is going to come out. This gives them time to ensure they inform you if that’s not okay. Or also provide them with time to ensure they put the money in their account. Number two, you want to ensure that your billing scripter matches the name of your business, and if it doesn’t, you notify your clients what your billing structure will be on their bank statements.
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Chargeback Mitigation Explain
An example is if your business name is Rick’s cupcakes, your bank statement says Rick’s LLC, which might confuse someone’s bank statement. So they might call their bank to dispute a transaction because it’s something that they do not recognize. Now another thing you want to do to mitigate chargeback is ensuring that your customer service, phone number, email, and anything you do after the cellular service is up to date. If someone doesn’t get that service from you or knows how to get ahold of you, they will reach out to the bank, guaranteed.
So again, this is Rick here with 5 Star Processing. I’ve gone share with you the 3 best chargeback mitigation practices to reduce fraud.
3 Best chargeback mitigation Practices to reduce fraud
When fraudsters get access to validate all your card details, they try to max the card and try to steal your all data as possible. Velocity checks identify & intercept such transactions. These checks may review a multitude of factors like card number, email id, IP address, billing address, etc., & flag repeated transactions in a limited time. Declines these transactions will reduce the risk of fraud for cards and businesses.
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Enable 3DS-only transactions
This is the second way to reduce fraud. 3D Secure transactions enable only a 2 Factor authentication that ends consumers need to go via before completing a transaction. 3D Transaction has proved this is one of the most successful ways to significantly reduce fraud.
All Businesses with a high risk of Fraudulent transactions disable 3DS transactions to avoid chargebacks mitigation at a later stage. The trade-off here is that more than 50% of all cards around the whole world are not 3DS enabled. Businesses thus require to make a choice between coverage & chargeback risk keeping in mind the nature of their firms.
Third-Party Risk Engines
This is one of the most trustful ways to reduce risk. Some businesses either build or employ third-party risk engines to add another layer of risk chargeback mitigation to their payments. Many risk engines in today’s world exist in the market that gives these capabilities to merchants. This confirms that the Merchant is able to continue with 3DS transactions with a reduced risk of fraud.
These are all the top three ways to reduce fraud risk. We hope this article is very informative to you. These are some cool ways help you to mitigate your chargeback so that you can succeed as a business owner. We at 5 star processing try to give you all information about Chargeback mitigation. Have a fantastic day.