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Why Moving Brokers Get So Many Chargebacks & How to Avoid Them

Moving brokers are the target for many chragebacks. It’s an unfortunate consequence of a rather lucrative business.

Over the years, moving brokers are becoming a popular choice when it comes to transporting valuables due to several reasons:

  1. It saves time. If you’re one busy person and do not have the time to look for a moving company on your own, then moving brokers can help you.
  2. Moving brokers have access to the best rates available; therefore you can surely find a mover that suits your budget.
  3. Moving brokers are well connected to the moving industry. Brokers can arrange almost everything you need in transporting your things, more of like a personalized service.

While hiring the services of moving brokers can be beneficial for both parties, it can also be risky. The trouble starts when a customer is not satisfied with the service, if something goes wrong with the transport, or if one of the stuff is damaged and broken, or the customer simply does not want to pay for the services, he or she can take advantage of the chargeback process.

Moving brokers’ chargebacks are on the rise which can potentially lead to bank issues and hurt your business reputation.  For moving brokers, below are the basic practices on how to avoid chargebacks:

Foremost, avoid merchant error. Mistakes are inevitable, but if it is a recurring issue, then this can affect your chargeback percentage. As a moving broker, always provide the best service possible. Setting proper expectations and good customer service can go a long way. Be transparent with your services. Lastly, deliver what is expected from you.

Educate your staff and customers on your terms and conditions. Use simple terms so the customer can clearly understand the rules. Even if these are published on your business page or website, do not assume customers have gone through the page.  It is still best to discuss the Ts &Cs over the phone or have it printed with the customer’s affixed signature; he/she understood and accepted the ground rules.

Put everything in writing and furnish the customer with a copy. Details such as your name or the brokerage firm’s name, contact or phone number, website/URL must be reflected on the contract and receipts. With these details available, customers can get in touch with you without delay which prevents further issues and disputes.

Avoid manual key entry of card details is possible. As always let the terminal read the card details. If transaction is done online, advised the customer to double-check the expiry date. By accepting an expired card, your business is at risk of an authorization error chargeback.

Make sure the billing descriptor reflects accurate business information such as name, contact number, and website.

Learn how to detect early warning signs of fraud.

Lastly, get the services of a high risk merchant account provider. These companies are experienced and knowledgeable of the process on how to contest and lessen chargebacks percentage.

Asking the experts will not only help you save money but saves you from the trouble of fighting back chargebacks.

Learn more about consumer rights related to chargebacks.

( Merchant Account Specialist )

Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.

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