How Can a Student Loan Doc Prep Company Stop Chargebacks?
Chargebacks, in general, are the cause of stress and headaches for any type of business. Your priority, as a high risk merchant, must be to stop chargebacks before they happen.
But when you’re running a student loan doc prep company, the risks of getting chargebacks is a lot higher because of the nature of your business and the type of clients that you’re dealing with.
Fortunately, there are several ways to prevent and stop chargebacks before they cause any irreparable damages to your company:
Implement Strong Preventive Measures
Like they say, prevention is always better than cure. With just a 1% chargeback rate threshold or one chargeback in every 100 transactions, you’re working on a really tight space to protect your company from being flagged by banks and merchant processors.
So the best thing that you should do first is to keep chargebacks as low as possible, if not completely eliminate them.
For starters, you need to be clear with your service description to avoid disappointments that easily lead to chargebacks. It’s also very important to explain to your clients your billing and refunds policy and have them sign a document stating that they understand and agree to your terms.
Invest In Good Customer Service
Taking care of your clients isn’t only important for your bottomline but overall, you may stop chargebacks before they happen. When you know that you handled transactions properly and were available to listen to queries and complaints, you can be confident that you can dispute any chargebacks from clients.
With the prevalence of “friendly fraud” these days, treating your customers right as well as having a complete record of all your transactions are your strongest weapons against clients who try to defraud you using their chargeback privileges.
Get To The Bottom Of The Problem
Every chargeback filed against you has a corresponding reason code depending on the bank involved. You need to understand that not all chargebacks are the same, so you have to learn about chargeback reason codes to identify the most common reasons clients file a chargeback against your student loan doc prep business. This way, it’s easier for you to target the source and prepare your defense against these chargebacks.
The most common reasons you’ll find are merchant error or a procedural misstep in a transaction that causes a client to file a chargeback after he doesn’t see your return or refund policy or can’t reach your business, criminal fraud or the common act of transactions made by stolen credit cards and friendly fraud, which constitutes 70% of all fraud cases.
Work With The Right Merchant Processor
Finally, there’s nothing like having a reliable partner to help you deal with chargebacks when they haunt your business. Merchant processors have different ways in dealing with chargebacks, so it’s very important to find a partner that will work with you in solving the problem before it causes huge losses to your business and hurt your credibility in the long run.
Merchant processors can alert you of any suspicious transactions so you can inform clients right away and they can also help you come up with proper information on transactions that will serve as the proof of the legitimacy of your transactions.
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