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Tips on how to avoid chargebacks

Merchants now more than ever must guard themselves against costly chargebacks. Most chargeback situations arise at the time the transaction is completed—and most can be prevented with training and diligence.

1.     Always obtain cardholders signature. Rushing to get your check-out line down can cause you to miss a signature on a payment slip thus making it nearly impossible for the merchant to recover funds.

2.     Make an imprint of all card transactions. In the event your terminal or POS system is down having an imprint of the card and will prove that the card was present and will help significantly in a chargeback situation.

3.     Void incorrect receipts in front of customer If possible. This will give the customer peace of mind that they will not be double charged.

4.     Close/Settle Batch within one or two business days! This may sound simplistic, but it happens. Customers expect to see their purchases as soon as their card is run, even waiting a week can cause confusion that can result in a chargeback.

5.      Process recurring transaction cancellations promptly.  Once a customer request that a recurring payment be stopped they are watching their accounts with an eagle eye.

6.     Notify customer promptly if there will be a delay in processing the transaction. If your business deals with shipping or any type of delivery of merchandise, anticipate that somewhere down the line there may be a delay in completing an order. Always obtain a telephone number in the event a delay happens and keep the customer notified.