One of the things that hurt a company’s chances of getting good rates, or even being able to have merchant account processing for their business, is chargeback ratios. If ratios are not under a certain percentage, you will be denied, or you will have problems with funding. A lot of merchants have had sleepless nights over this issue, but it does not have to be that way! Even if you are in a higher risk industry, there are things you can do to keep your chargebacks at a minimum.
Here are five simple tips that you can use to Avoid Chargebacks:
1. Good Customer Service.
Good customer service plays a big role in keeping ratios down. If your front line customer service associates are handling calls and inquiries effectively, it is the first step to heading off potential problems at the onset. We all cringe when we hear a customer service associate – whether if it’s from our own company or a company we are a client of – say the wrong things or have bad manners on the phone. It sets the tone for the entire experience with a company, and unfortunately, things can go downhill from that one call. Improve your customer service program, to assure success and keep chargeback ratios in line.
2. Be HONEST.
This seems obvious, but in business today, it is even more imperative that things are on the up and up. Even vague wordings can lead to chargebacks. There are good merchants in bad industries, and it is hard enough to keep ratios in line without muddying the waters through willful misrepresentation, omission of facts, etc. You need good, clear, and straightforward terms and conditions. Are they accessible on your website, and not hidden by a bunch of fluff? If they are hidden under 6 pages of redirects and smoke and mirrors, then you have a problem. This is even more important for companies who do rebilling.
3. Keep it SIMPLE.
The refund policy must be fully explained in layman terms, or, at the very least, readable by someone who doesn’t have a law degree. We know the sales process is hard, and with competition being stiff in most industries, it becomes harder every day. A refund policy should be short and sweet, and well explained to keep chargebacks at bay.
4. Have an Effective Sales Pitch and Team.
The sales pitch has to be on the up and up – whether the sale is made in person, by website, or by phone. There has to be a sense of positive urgency with sales. Also, having a top notch sales team is essential to growing your brand. Part of your sales team is your website, which should have features that will make the sales process simple and effective. Lastly, any and all sales collaterals or rep communication has to be honest, clear, and compelling, (not vague or misleading!) to avoid chargebacks.
Every company needs a clear path with accurate descriptors. You are just asking for a chargeback if you offer products under a certain name, and then have a vague descriptor. A lot of companies lose sight of this. As an example, a customer buys a box of cookies for $7.99 from an online vendor, and the name of the cookie and website was johnscookies.com. Three weeks later, they get their credit card statement, and it has a transaction from JC Trading for $7.99. They ask themselves, “Who is JC Trading? I don’t remember a transaction for $7.99!”. They call their bank, and unfortunately the only information the customer service associate has as well is the name JC Trading and the amount to be paid. This calls for an instant chargeback in most cases. Make sure your descriptor is accurate, to avoid scenarios like this.
Merchant account service needs for every business will vary, but keeping chargebacks in line is apropos for any company. We can help you with strategies for keeping your chargeback ratios at an acceptable level, thus helping your business grow and prosper. Call us now how we can help you avoid chargebacks.