| Prevention
of chargebacks
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When a shopper uses a credit card in person the proper
checks are carried out at the point of sale (for example,
chip and PIN), and the card scheme rules ordinarily
require the issuer to bear any losses arisen. With online
transactions, however, the liability for such a loss
lies with you, because you do not have written evidence
that the cardholder used the card and received the goods
or services.
Chargebacks can happen regardless of what you are selling
or how you run your business and are pretty much inevitable.
People will either deliberately chargeback as they are
pulling a fiddle or cannot remember what they purchased
or cannot be bothered to ask for a refund. Luckily it
is actually rare!
As previously stated it is not possible for you to
avoid Chargebacks completely, however, the information
in this section could help you reduce the number of
RFIs and Chargebacks you may receive.
Transaction authorisation does not prevent Chargebacks
Authorisation of a transaction does not guarantee payment;
it will only check the availability of funds at the
time of the transaction and that the card has not been
reported lost or stolen at the time of authorisation.
Customer Service
One way to reduce the number of Chargebacks is to provide
good customer service and have a high quality of goods/services
offered, as this will reduce the number of cardholders
raising disputed transactions with their card issuer.
For further information about providing high standards
of customer service within your online store refer to:
Fraud Prevention
Fraud Prevention plays an important role in the reduction
of the number of Chargebacks you receive. Here is a
number of fraud prevention facilities and procedures
listed below:
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