A "credit card chargeback" is when a buyer is disputing a payment to his bank in order to get a refund.
The are some best practices to avoid chargebacks :
If your customers has a claim or a question on delivery times, you should be reachable. Your contact information should also be accessible. You can give a toll-free number, an email address or a chatbot, in order to allow your customers to contact you easily.
The indication of contact information also allows to increase conversion. Indeed, your customers will be able to contact you if they have questions, especially on your product. You can then convince them directly that your goods or services correspond to their needs. Customers cans abandon their shopping cart if they are not sure they can join the seller.
Indicate the real hours which you are available at, and do not hesitate too propose to your customer to refund him if you think you won't be able to process the order.
In case of delivery problems, communicate with your customer.
In case of delays on delivery, or in case a product is out of stock, talk to your customer in real time and reassure him.
Opt for delivery tracking
Pick a delivery options with tracking. This delivery method is reassuring for your customers because they will be able to follows the order, and on your side, the delivery proof will allow you to prove your good faith in case of litigation.
Activate the 3D-Secure
PayPlug offers you the possibility to use the 3D-Secure activated by default on your account from a 100€ purchase on. If you wish to, you can activate this option from the first euro (More information).
PayPlug also proposes the Smart 3D-Secure. Each time a transaction is done, PayPlug calculates in real time a risk score. Whatever the amount is, if the risk is to high on the payment, the 3D-Secure is automatically activated. This feature allows you to optimize your conversion while limiting the chargebacks risk (More information)
Check among other things the inconsistencies that might appear in the mail and the address of your customer. For example, the buyer is using a strange name or he asks for a delivery to a foreign country you never send orders to. Distrust payments done during the night when the buyer is supposed to be within the same time zone as you.
For more information, here is our guide on fraud.
Keep enough products in stock and deliver fast
Don't wait the amount from the order to arrive, to by the article and deliver your customer. A cash flow is necessary to fund your customers' orders so that it doesn't generate delays and risks of litigation with your customers.
More information on fraud and chargebacks
- What is fraud ?
- What happens in case of credit card chargeback?
- What are the legal notices I should add on my website?
- What is 3D-Secure?
- What is the Smart 3D-Secure proposed by PayPlug ?