Payment Reversal Explained

Payment Reversal Explained + 10 Ways to Avoid Them

If you’ve been in business longer than a month, you’ve probably experienced a payment reversal of some kind. Certain payment reversals (I’m looking at you, chargebacks), are so prevalent that business owners have to budget them into their expenses every month. The frequency of payment reversals is tied to an interesting intersection of technology, law, and product/market type. If your online store doesn’t do a good job with its descriptions, you may deal with more payment reversals. Or if your product is expensive and highly bespoke (think high-end mattresses or musical instruments), returns may be more common. Some payment reversals are just normal business. Others can be exploitations of fraudulent customers, but the burden of payment reversals is often placed on businesses. The major credit card networks (Mastercard, Visa, etc.) have more incentive to favor their customers, and it’s up to you to fight back when appropriate. The more systems…

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Chargeback Fraud: What it Is + How to Prevent It

Chargeback Fraud: What it Is + How to Prevent It

Chargebacks are often the bane of business owners existence — they’re tough to fight, expensive, and often frustrating. It’s often tough to discern between honest chargeback mistakes and actual chargeback fraud, and the burden falls on you to make the case for which transaction is which. This involves contacting both the bank and customer and providing accurate records of the transaction. Businesses have to deal with: Lost revenue Recovering or forfeiting sold products Eating transaction fees incurred during the fraud. And sometimes even more than that. And not only is it expensive to experience chargebacks, you also have to use hours of your and your employee’s time to fight them… sometimes it can feel like it isn’t even worth dealing with. Fortunately, there are ways to combat chargebacks efficiently, and with the right systems in place you can save yourself substantial amounts of money. But first, let’s define chargeback fraud:…

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Savings

7 Ways to Reduce Chargebacks and Save Your Company Money

If you are a business owner, you know the great annoyance that can come from chargebacks. Maybe a customer claims to not have received a product or they say there is a problem with the product and a chargback is issued. Chargebacks can also happen due to actual cases of fraud in which someone’s card information has been stolen. Many business owners believe that chargebacks are just an unavoidable part of running a company and so they have come to accept it as a necessary evil. In fact 47% of merchants have come to accept fraud, believing there is nothing that can be done about it and 20% think it is too expensive to control. The truth is though that chargebacks can be incredibly costly to you with an average of $15,162 in expenses per month. Actions can be taken to avoid chargebacks however and they can be reduced up…

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Dealing with chargebacks

Dealing With Chargebacks

Chargebacks occur inevitably as a part of running a business that accepts any payment. A chargeback is when a customer refutes a charge with the bank linked to the card used to purchase anything online or in store. Therefore, it is important to try to minimize your number of chargebacks as much as possible. There are several ways businesses can decrease the risk. Merchants should try to do everything possible to ensure that customer disputes do not reach the chargeback stage. Usually, before contacting the card issuer, customers will attempt to contact the merchant directly with the problem, and when this happens, merchants should be able to deal with the issue and try their best to resolve it. Ensure that you are including a good way for customers to contact you. This way there is no need for the customer to file a chargeback. Why Customers Issue Chargebacks Chargebacks are…

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