Minimizing the negative impact of chargebacks on profits

[mandy]

Chargebacks — the reversal or credit of a charge back to a customer's credit card account — unfortunately, are a part of doing business, whether online or offline. But e-tailers are at a natural disadvantage compared to bricks-and-mortar stores because there's no face-to-face signature witness or card imprint taken.

And, while it's relatively easy for a customer to get a charge reversed, proving a sale was legitimate can be time-consuming and costly for online merchants. To add to the dilemma, in fraudulent cases, e-tailers bear the liability in most cases, not the card issuers, as is the case in traditional commerce.

Still, knowing the reasons why chargebacks occur, how to spot suspicious ones versus valid ones, and how to handle both types, helps minimize the negative impact they can have on your bottom line, namely hefty fees and a lost sale...

full article: http://www.ecommerce-guide.com/solutions...hp/3664961

[mandy]

A related article:

The majority of merchant banks charge fees for chargeback inquiries — circumstances whereas cardholders don’t recognize a charge and file a dispute. Even if the end result is in your favor, you still may be imposed with fees, commonly ranging from $10 to $25 per inquiry. These charges can add up to quite a bit during the holiday shopping season, and there are steps you can take to help cut down the number of inquiries made against your account.

• Be clear on your website, especially during and after checkout, how the charge will appear on the consumer’s credit card statement. A post-order follow up email (sent 1-2 weeks later) can serve as a good reminder.

• Make sure your business telephone number is included on the charge that appears on the consumer’s credit card statement. Ideally, reserving a toll-free number specifically for such inquiries will garner more calls, but less reports to actual banks.

• Do not charge credit cards for items that are pre-ordered. Instead, charge the card when the item arrives in stock and is shipped...

full article: http://www.practicalecommerce.com/articl...argebacks/