The Adult Business’ Guide to Avoiding Chargebacks
Avoiding chargebacks is better than dealing with them after the fact.
No business owner looks forward to getting a chargeback notification on his email. But with most banks automating the chargeback dispute process, a lot of consumers are already more adamant in filing chargebacks to the detriment of businesses.
A single chargeback alone could cost a business between $20 and $50 from the lost sale and when that number piles up, it could really start to hit the bottomline and eventually, the business itself.
This doesn’t include the hassle and headache of going through the motions of negotiating with clients and proving the legitimacy of a transaction to banks and merchant processors.
This scenario is more real if you’re running an adult business where something as simple as an unmet expectation could lead to a chargeback. But how can you avoid it?
- Make Technology Work To Your Advantage
With a maximum threshold of only 1%, a single chargeback is already considered unacceptable, especially if you only have a few transactions every month. But one of the best ways to combat these chargebacks is to make the most of what technology has to offer.
For starters, make sure that you’re not stuck using old magnetic strip readers when a new liability law already mandated that merchants with the “least EMV-ready” processors would be accountable for fraud within their system. Contact your processor to know if you are using the latest chip card reader. If not, have it replaced right away.
Another smart way to utilize technology is to invest in tech that allows you to identify suspicious activities and jump into action before a chargeback is completely filed on the acquiring bank. The earlier you deal with the issue, the better are your chances at winning the dispute.
- Keep a Record Of All Your Business Transactions
Once you’re notified for a chargeback, you’ll be given a limited time to supply the bank or processor with all the necessary documents to support your claim of legitimacy. So the last thing that you’d want is to scour files for those documents or not have anything to show at all, which puts your company in a bad light. Make sure that all transactions are monitored and all documents are kept in one place categorized per client.
You’ll need delivery receipts, communication, signed refunds and returns policies, and verified billing/shipping address to support your dispute.
- Be There For Your Consumers
Most of the time consumers who file chargebacks are those who did not feel valued by your business. They may have already tried contacting you to air out their sentiments or they were looking for your contact information but haven’t found it on your website.
Those who manage to get in touch with your office may have been treated unfairly or rudely by customer support that they’re left with no option but to file for a chargeback.
Every successful claim could make you lose money, but you can keep that from happening if you invest in good customer service. Make sure that you have a process in place to help your team deal with complaints effectively. If you feel that a complaint is legitimate, you can offer a refund to avoid the chargeback altogether.
Apply for an adult entertainment merchant account and get started today.