Customer dispute

• Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring tra
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  Chargeback can be just another word for nightmare for online sellers. When a customer decides to ask for a refund for a purchase made on their credit card, the online merchant has little to do about it, especially since many customers don't even contact the seller beforehand.

  Why does chargeback occur? Generally, it's the result of the customer not recognizing the transaction from the credit card statement. Chargeback can have five different reason categories:

  • point-of-sale processing errors
  • customer dispute
  • post-transaction
  • potential fraud
  • authorization-related

  The categories that commonly apply to online merchants are:

  Potential Fraud

  Fraudulent card-not-present transactions: the customer claims that the transaction appearing on the billing statement was not authorized. Since the tools needed for avoiding chargeback are not available to online merchants, like swiping the card through a processing terminal or getting a signature on the receipt at the time of sale, it's very important to prevent chargeback, rather than deal with it after it occurs.

  10 tips on how to prevent chargeback

  1. Use a professional anti fraud filter. This method can guarantee you the lowest fraud rate.
  2. Use clear corporate names, that describe what your company does or sells. Unrecognized names on the billing statements are among the most common causes of chargeback.
  3. Put a phone number on the customer's statement, so they may be able to call and find out who you are and why you charged them.
  4. Respond as quickly as you can to chargeback. Since there's a limited time period to resolve such a problem, a quick response will give enough time to the processing bank to get relevant information from you.
  5. Never accept an expired credit card.
  6. Get authorization for the full amount of the sale.
  7. Work closely with the client to resolve any problems regarding the quality of the product or services.
  8. Verify any large or suspicious order to make sure it's legit. If you can't reach the client, it's possible you were intentionally given incorrect contact information.
  9. Check the customer's address, name and phone number with the card-issuing bank. This will also provide proof that you checked before agreeing with the transaction.
  10. Charge the customer's account at the time the products are shipped.

  Point-of-sale errors

  • Incorrect account number: occurs when the card-issuing bank identifies the account number on the original transaction receipt as being different from the account number in the record deposited for payment. One example is when the merchant makes a data entry error, introducing the wrong account number for that transaction.
  • Duplicate processing: when the customer is charged more than once for the same transaction.

  Customer dispute

  • Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring tran
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    When you provide a consumer service or product, you have the legal and moral right to be paid within contractual terms. Consumer accounts not paid within your payment terms can restrict your cash flow, business growth and in some situations, the ability to continue operating your business.The following consumer collections report outlines 11 guidelines you can follow to increase the amount of in-house consumer collections your business collects.1] Have a Defined Credit and Consumer Collections PolicyOne of the major causes of overdue receiv
    o online merchants are:

    Potential Fraud

    Fraudulent card-not-present transactions: the customer claims that the transaction appearing on the billing statement was not authorized. Since the tools needed for avoiding chargeback are not available to online merchants, like swiping the card through a processing terminal or getting a signature on the receipt at the time of sale, it's very important to prevent chargeback, rather than deal with it after it occurs.

    10 tips on how to prevent chargeback

    1. Use a professional anti fraud filter. This method can guarantee you the lowest fraud rate.
    2. Use clear corporate names, that describe what your company does or sells. Unrecognized names on the billing statements are among the most common causes of chargeback.
    3. Put a phone number on the customer's statement, so they may be able to call and find out who you are and why you charged them.
    4. Respond as quickly as you can to chargeback. Since there's a limited time period to resolve such a problem, a quick response will give enough time to the processing bank to get relevant information from you.
    5. Never accept an expired credit card.
    6. Get authorization for the full amount of the sale.
    7. Work closely with the client to resolve any problems regarding the quality of the product or services.
    8. Verify any large or suspicious order to make sure it's legit. If you can't reach the client, it's possible you were intentionally given incorrect contact information.
    9. Check the customer's address, name and phone number with the card-issuing bank. This will also provide proof that you checked before agreeing with the transaction.
    10. Charge the customer's account at the time the products are shipped.

    Point-of-sale errors

    • Incorrect account number: occurs when the card-issuing bank identifies the account number on the original transaction receipt as being different from the account number in the record deposited for payment. One example is when the merchant makes a data entry error, introducing the wrong account number for that transaction.
    • Duplicate processing: when the customer is charged more than once for the same transaction.

    Customer dispute

    • Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring tra
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      t describe what your company does or sells. Unrecognized names on the billing statements are among the most common causes of chargeback.
    • Put a phone number on the customer's statement, so they may be able to call and find out who you are and why you charged them.
    • Respond as quickly as you can to chargeback. Since there's a limited time period to resolve such a problem, a quick response will give enough time to the processing bank to get relevant information from you.
    • Never accept an expired credit card.
    • Get authorization for the full amount of the sale.
    • Work closely with the client to resolve any problems regarding the quality of the product or services.
    • Verify any large or suspicious order to make sure it's legit. If you can't reach the client, it's possible you were intentionally given incorrect contact information.
    • Check the customer's address, name and phone number with the card-issuing bank. This will also provide proof that you checked before agreeing with the transaction.
    • Charge the customer's account at the time the products are shipped.

    Point-of-sale errors

    • Incorrect account number: occurs when the card-issuing bank identifies the account number on the original transaction receipt as being different from the account number in the record deposited for payment. One example is when the merchant makes a data entry error, introducing the wrong account number for that transaction.
    • Duplicate processing: when the customer is charged more than once for the same transaction.

    Customer dispute

    • Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring tra
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      quality of the product or services.
    • Verify any large or suspicious order to make sure it's legit. If you can't reach the client, it's possible you were intentionally given incorrect contact information.
    • Check the customer's address, name and phone number with the card-issuing bank. This will also provide proof that you checked before agreeing with the transaction.
    • Charge the customer's account at the time the products are shipped.

    Point-of-sale errors

    • Incorrect account number: occurs when the card-issuing bank identifies the account number on the original transaction receipt as being different from the account number in the record deposited for payment. One example is when the merchant makes a data entry error, introducing the wrong account number for that transaction.
    • Duplicate processing: when the customer is charged more than once for the same transaction.

    Customer dispute

    • Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring tra
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      the account number in the record deposited for payment. One example is when the merchant makes a data entry error, introducing the wrong account number for that transaction.
    • Duplicate processing: when the customer is charged more than once for the same transaction.

    Customer dispute

    • Cancel recurring transaction: the customer claims that the seller has billed, even though it has been notified to cancel the recurring transaction, or that the customer has been billed more then the authorized amount. It also occurs when the customer says the seller was supposed to notify him before processing each recurring transaction but didn't.
    • Customer claims services were not performed: the card-issuing back receives a complaint that the customer was billed for service that was not carried out.
    • Merchandise or service was not as it was described by the seller: the customer claims the products or services were not the same as shown on the website or in accordance with the documentation the seller presented at the time of the transaction and the customer attempted to return the products or cancel the services or to resolve the dispute directly with the merchant.
    • Defective products: the customer claims the product was damaged or unsuitable for the purpose sold and attempted to return it.
    • Customer claims merchandise was not received: the customer makes a written claim that the product ordered was not received or that the customer canceled the order because the product did not arrive by expected delivery date.

    The simplest way to avoid chargebacks is to use an e-commerce platform with integrated expert antifraud systems, similar to Avangate.