Chargebacks In Retail Environments

chargebacks in retail environments

Chargebacks In Retail Environments

Chargebacks In Retail Environments

Chargebacks are bad, plain and simple…no matter what type of business you operate. Normal refunds are a snap compared to having a card issuing bank dispute transactions on behalf of a customer. These are always a battle and can waste precious time and money. Either way you’ve lost a sale, but here’s what you truly lose:

  • Less confidence between the customer and yourself
  • Damaged trust between yourself and your credit card processing company
  • Financial penalties for the chargeback, usually between $15 and $100
  • Time and money spent mitigating each chargeback

Even if you manage to keep your chargeback ratio close to 1%, you’ll still spend weeks and/or months out of your year disputing with and talking to banks regarding these types of transactions – again very costly and time consuming. Why focus on things that may be preventable when you could be focused on growing your business?

So what can you do?

Reduce Chargebacks Within Your Retail Business

There are several steps to reduce chargebacks in a retail environment:

1 – Make returns and refunds hassle free and easy for the customer to understand, as many chargebacks come from unauthorized purchases.

2 – Invest in secure, PCI compliant processing that use tokenization or point to point encryption to secure whatever data is stored and then transferred.

3 – Use better user authentication such as requiring CVV codes, zip codes, PIN numbers for debit cards, or any other individually identifiable information. This proves that the user was actually in your store and confirmed the transaction.

Chargebacks In Retail Environments Will Always Co-Exist

They are unfortunately here to stay, however with the aforementioned methods of reducing fraudulent transactions, you can prevent quite a few from occurring in your business. However, if you feel that you need an extra helping hand in reducing chargebacks for your business, Choice offers CB Dispute. CB Dispute will explain the chargeback process, monitor chargebacks on a daily basis, and respond and fight on your behalf.