How to Avoid Credit Card Chargebacks

Dec 4, 2012 by

How to Avoid Credit Card Chargebacks

This article submit by How To Accept Credit Cards Online.

A credit card chargeback no doubt hurts the owner of a business. Say a customer walks into your store and makes a purchase with their credit card. They take their merchandise and leave the store. Then they get their credit card statement and do not recognize the purchase. At that time, they contact their credit card company to dispute the charge.

After doing some investigating, the credit card company sides in favor of the customer and charges back the money they paid. For instance, if they paid $75 for an item, that money is charged back to their credit card and you lose out on that $75. While these chargebacks can be time consuming and costly for you, there are ways to avoid credit card chargebacks.

If the customer is making a large purchase or if you think fraud may be involved, do not hesitate to ask for photo identification such as drivers license. Be sure the person making the purchase is the same person in the driver’s license. Also be sure that the credit card is signed. If not, ask for another form of identification.

One of the reasons that a customer may dispute a transaction is because the purchase they made from you shows up as a different company name on their credit card statement. It would be worth using a DBA, or Doing Business As, name that the customer will recognize.

It is important that you keep copies of your receipt for a minimum of two years. That way, if ever a transaction is disputed, you will have the customers’ signed receipt.

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