Chargebacks: Why they happen and how to avoid them
Learn how to avoid chargebacks.
Use the right and left arrows to fast forward and rewind
|Mute volume||Use the up and down arrow keys to turn the volume up and down||Rewind video 5 seconds||
0:00 / -:--
|Fast forward video 5 seconds||Turn closed captioning off|
Chargebacks — transactions which are disputed and deducted from your merchant services account — are often a cost of doing business.
You can take some simple steps to minimize them and save your business on costs and associated fees.
Chargebacks happen for many reasons.
Maybe a customer’s card was charged for the wrong amount. Maybe they don’t recognize the store name on their statement or remember the purchase. Or maybe they didn’t authorize the purchase at all.
All of this can lead to chargebacks. Minimize them with a few simple rules.
First, work with your payment processing provider to make sure that your company name is easy to recognize on a customer credit or debit card statement. Second, upgrade to EMV equipment to accept chip cards whenever possible.
Next, look for anything unusual such as a customer providing different phone numbers, billing names, and addresses for online purchases, or signature mismatches on in-person purchases.
Finally, get authorization for every transaction. If the transaction isn’t approved, ask for another form of payment.
And if your payment processor requests information about a recent transaction, provide the information as soon as possible.
Follow these rules to help reduce chargebacks, and be sure to work with a payment processor that can offer you expert guidance.
Visit wellsfargo.com/chargebacks for information about Wells Fargo Merchant Services.