Store managers what chargeback know how the use of debit and credit cards can help their establishment’s sales. But they also know that these types of transactions can generate some type of transportation, especially when we are dealing with e-commerce. After all, no company is free from these risks, right? And when we talk about e-commerce, these risks can be even greater or recurring.
One of the main problems involving online transactions is the so-called chargeback. Do you know about it? Have you ever experienced it? Do you know how to avoid it? Well, that is exactly what we are going to talk about in this article. But don’t worry, there is no need to despair or give up on creating/maintaining your e-commerce because of this. I can already tell you that it is possible to avoid such problems with simple actions. So, enjoy your reading and come with me.
What is Chargeback?
Chargeback is the process in which a customer cancels a purchase made on a credit/debit card that has already been billed. The customer contacts the card country email list operator and notifies the customer requesting the cancellation. If any irregularity is proven, the acquirer will refund the amounts paid.
Chargebacks were the way that acquirers found to ensure greater security in purchases made, whether through e-commerce or physical stores. However, despite the security, their occurrence can be quite harmful for the retailer.
When can a chargeback occur?
Chargebacks can occur in different situations, but we have separated the three main occurrences here:
Difference in values
Let’s suppose that a customer was in your cro optimization: what is it and how to do it? establishment and made a sale and paid with a card. When entering the amount of the sale (considering that you use a POS), you or an employee ended up entering an amount higher than the sale amount and it went unnoticed at the time. The customer, upon arriving home, realized that the amount charged was higher. In this case, the store owner was left without the money from the sale and without the product.
That’s why we don’t consider POS as part of commercial management , due to the risk of human error in the process. We always recommend that establishments use TEF, which automates these processes and reduces the chances of errors .
Fraud
According to a 2017 Norton survey that evaluated chile business directory around 40 million transactions, one in every 33 purchases made online is fraud . The most common type is through the use of cloned cards.
When a consumer identifies a transaction on their bill that was not carried out by them, they can request a chargeback from the card operator.
This type of situation is quite common on websites that do not have some type of anti-fraud system.
Self-fraud
This type of fraud has become increasingly common in recent times and occurs due to bad faith on the part of the customer . It happens as follows: the customer makes a purchase of a product, whether through e-commerce, Instagram (via payment link), non-face-to-face card transactions, etc., and upon receiving the product at home, they contact the card operator claiming not to have received the merchandise or that they do not recognize the transaction. In this case, the transaction refunds the purchase amount and the store suffers the loss.
Did you see how in all these cases, the store owner is the main victim? But, again, don’t worry! There are ways to take precautions and protect yourself.