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Reduce Fraud and Chargebacks
Every merchant fears the words chargeback and fraud. The dreaded words are used against you for a number of reasons. A chargeback can occur if there were double charges, credit card expired, bank or customer issues as well. Too many chargeback accounts can actually cause you to close down your business due to losing your merchant account contract. There are a few ways to prevent these things from happening to you.
If it is in person, check the credit card completely and always verify the customer’s ID. If the customer does not want to show you the ID, you can decline to serve them. Verify CVC2 and CVV2 verification numbers. These are the 3 digit numbers on the back of the credit card. Use an address confirmation number. Try not to allow orders from developing countries. Let customers know which name appears on the statements. Companies which use third party merchant accounts sometimes have those names on the statements instead of the company name which causes some confusion for the customer. Handle suspicious accounts with caution. People using free email accounts are a lot more difficult to track and may cause problems for you in the future. If your company delivers, make sure you get a signature upon delivery to have on file in case any problems occur. You may want to ask for ID and credit cards through fax. This can be especially used in suspicious accounts. Post a warning message on the website about those who may attempt to commit fraud. This will greatly discourage them from trying and will keep your company fraud free. If you follow these steps you will have a lot less chargeback and fraud accounts keeping your business going smoothly. Good luck with your merchant accounts!
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