Tips to Prevent Chargebacks on Your Ecommerce Site

Chargebacks can be pretty annoying for an ecommerce business and there are many ways to help reduce the number that you receive. Most of these solutions are based off of communication. You must communicate with your customers; they need to know exactly what they are purchasing and how they will receive it. Although, there is a few cases where an order may be fraudulent and I’ll show you how to reduce these later on.


One simple way of lowering the amount of chargebacks is to display your return policy on many, if not all, of your website pages. Have links that will redirect them to the return policy. You should even have the return policy sent in the order confirmation email.


Provide descriptive product details while keeping them simple but very concise. As I said earlier, the customer needs to know exactly what they are receiving so that they have no reason to return / dispute the product. If you have drop down boxes for products, make sure they are clearly stating the options for the product.  


Make sure you have a Contact Us page. This will provide confidence to your shoppers in knowing that they can contact you easily by phone (preferred) or email if they have questions. You may even want to have a link on your home page pointing to this. This will lower chargeback complaints.


Let the customers know when they will be billed and charged. A great spot to explain this would be in the confirmation email. Again, put your phone number in this email just in case they have a question concerning the order.


Let the customers know the status of their orders. For instance, you can send another email after the confirmation email letting them know their product has been shipped. In this email, let them know what the average time it usually takes to arrive. Also, you can provide tracking numbers; this is a great tool for customers. Cart32 easily allows the use of a “Status Email” to update your customer on their order.


Lastly, how can you, as an online business, keep the fraudulent transactions away?  Well, first, you can monitor the IP addresses. If the location of the IP address doesn’t match the billing address or shipping address then there is a greater chance of it being fraudulent. Cart32 automatically collects the IP address of an order. Another solution is to use the CVV2 or CVC2 option. The Cart32 Gateway also allows you to help prevent fraud by using both the CVV2 and AVS verifications together.

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