7 Tips to Avoiding Chargebacks in Your Nutraceuticals Business
There is a strong clamor for nutraceutical products today. With more people making a conscious effort to change their lifestyle choices, dietary supplements, nutrients and other related products are flying off the shelves with a projected market growth of 53% by 2021.
But while this huge demand is good for your nutraceuticals business, you still need to deal with chargeback issues that could easily hurt your bottomline and put your merchant account at risk for being shut down. The good news is; there are ways to avoid or reduce these chargebacks starting with these seven tips:
- Understand the most common reasons for chargebacks.
A chargeback is generally a dispute from a consumer to its credit card company about a billing or transaction. Although it’s impossible to avoid chargebacks entirely, you can keep ratios low starting with understanding why they happen in the first place.
An exaggerated claim is one of the biggest reasons for chargebacks. Consumers who don’t get the results they were promised from using a nutraceutical product could initiate a chargeback.
Subscriber remorse is another reason, which means that a consumer forgot that he subscribed for recurring billing and would want to dispute that charge to be removed from his bill.
There is also a lack of infrastructure where concerns and complaints are not dealt with properly resulting in a possible dispute.
- Be accessible to your consumers.
A lot of consumers who initiate a chargeback are not actually disappointed by the product they bought but with the service they get from a business. This is why it’s very important to make sure that you are accessible to consumers by having someone answer their calls and listen to their grievances.
You should also have a process in place to handle complaints efficiently before a consumer decides on a dispute. Some businesses even have a dedicated billing support hotline to lessen the concerns of consumers.
- Be proactive with fraud.
Fraud could easily hurt your business, but you can prevent it by being more proactive with acting on any suspicious behavior in transactions. Identify fraudulent activities, stolen cards or any red flags and make sure to stop them before they affect your business.
This should be your number one priority to maintain a good standing with your nutraceutical merchant account.
- Thank your consumers.
Email marketing is still an efficient strategy not only for boosting sales but also reaching out to consumers and making them feel valued. After fulfilling orders and shipments, make sure to send a simple thank you email or survey to consumers so they can remember your brand and know that they can reach you any time if they have concerns with their bills.
- Implement an easy refund process.
Finally, you need a good refund process in place to accommodate dissatisfied consumers without having the need to do a chargeback or dispute.
When you receive a complaint, offer to give your consumer a refund to avoid the need for a chargeback, which could be flagged by credit card processors and hurt your chances of getting a renewal.
Refunds are also a lot easier to track and they help improve your transaction flow so you can stay efficient even with a few glitches along the way.
- Get It In Writing
In order to avoid chargeback another important factor is to get the customer authorization in writing so once you have the authority its easy to defend your case if you are facing chargeback issues because know you can present them the written authorization which you already signed from the customer
- Use Descriptive Names
A common chargeback issue stems from a simple client confusion. A customer may see a charge on their credit card statement and not understand what they are being charged for. In a haste, they may see a charge, contact their bank and have the charge reversed.
There is a simple fix for this.
Be sure that all your charges, your products and your legal business name is transparent and easy to recognize.
Be Smart – Protect Yourself and Your Business
Chargebacks cost you additional fees and if you have a history of multiple chargeback cases it could hurt your relation with the merchant account provider so its batter to keep your documents complete and if you feel that you can defend your case its batter to pursue to avoid chargeback on you
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