Chargeback fraud causes multiple tedious issues. The list includes:

• Lost revenue.
  When a chargeback request is approved, the merchant is required to pay back the money received for the purchase. A single refund case might not affect your business; however, many chargebacks can cause more significant financial issues.
• Chargeback fees.
  Additionally, when chargebacks occur, the merchant is obligated to cover the extra chargeback fee. These fees intend to make companies prevent chargebacks in the future, but they might become a significant issue for the business.
• Increased fees from your payment processor.
  A significant number of credit card refunds might make the merchant unreliable in the eyes of the financial company. To ensure the safety of transactions, your payment processor might increase the fees required for the provided services.
• The decline of customer flow.
  The large number of chargebacks might significantly damage your reputation as a merchant. As a result, new clients will refer to visibly more trustworthy companies, and even frequent customers might opt for another merchant option.

These problems can significantly impact small and large companies, disrupt their development, or even eradicate them. Thus, to protect the business's reputation and prosperity, one of every merchant's priority tasks must be to prevent chargeback fraud.

• Find a reliable shipping partner
  Often, clients issue the chargeback even before they receive their package. This happens when delivery takes longer than stated, which can happen due to the shipment company's incompetence. Find reliable shipment partners to deliver the product on time, keeping your customers satisfied and your reputation and revenue secured.
• Improve your site template
  Sometimes, due to certain design choices companies make regarding their sites, customers might miss vital information about the purchase. Make sure your site presents the information appropriately. This will help customers avoid misunderstandings and prevent accidental and intentional chargeback fraud.
• State your policies clearly
  One of the common fraud excuses customers use when they issue a card transaction cancellation is that they weren't aware of the company's policies regarding credit card payments. Create a separate page with your establishment's terms. Make sure you use various ways to make the information easier to read: add bullet points, highlight crucial details, etc. Additionally, add a button with a hyperlink to your policies on the checkout page. You can also add a check-box button that states the client read and agreed with your policies. This way, winning the chargeback fraud case will be significantly easier.

Analyze your customer service data regularly and be open to suggestions. Identify areas where communication breakdowns might cause issues that can lead to friendly chargebacks and address these problems proactively.

Collect Evidence of Your Reliability

Winning chargeback fraud disputes is often challenging; however, you have significantly better chances of canceling a card payment refund if you have evidence of competence. Here is some advice on convincing issuing banks of your trustworthiness as a merchant.

• Provide banks with appropriate documentation.
  Gather evidence of the services being properly provided: add documents that include correct shipping information, package receiving confirmation, detailed transaction history, etc. This way, the issuing bank will be more convinced that a particular chargeback case is a fraud, which will secure your revenue and reputation.
• Record conversations with customers.
  Maintain a record of communication with your customer throughout the transaction. This includes phone call records, email texts, messenger chat transcripts, etc. If you have communication records demonstrating your effectiveness as a seller and/or prove the client's misconduct, the chances of winning the card transaction dispute rise.
• Collect positive reviews.
  Positive comments and testimonials of clients on your website can show your commitment to customer satisfaction. A considerable number of statements that show your competence as a merchant will help you build trust with the issuing bank. To obtain more reviews, you can ask clients to rate your service after their purchase and briefly describe their experience with your company. This will help you get a significant number of comments that prove your effectiveness, find weak spots in your service, and react appropriately.

There's always a chance that a chargeback won't occur, and the evidence of your reliability won't be needed. However, it's better to be safe than sorry. Gather proof of your competence before chargeback frauds occur, so if the bank issues a credit card refund in the future, you have a solid case to defend your interests.

Implement Chargeback Prevention Tools

Though monitoring chargeback activity is crucial for your business's stability, it can be tedious and extremely time-consuming. Fortunately, there's a simple solution to this issue. Chargeback prevention tools automatically handle refund cases, saving the team time and protecting the company's revenue.

There are a few more benefits chargeback prevention services can offer:

• Enhanced productivity.
  By saving time, chargeback prevention services help your team dedicate precious hours to more critical and urgent tasks, free from worries about your revenue security.
• Improved reputation.
  Chargeback fraud prevention services automize refund disputes, dealing with transaction cancelation cases faster and more efficiently. This results in faster chargeback resolution, which improves customers' experience and makes your company more trustworthy.
• Professional data expertise.
  Chargeback services resolve various refund cases automatically and provide merchants with data analysis that allows companies to detect fraud trends. Such insights also reveal valuable customer behavior patterns the company can leverage to optimize other business areas.
• Reduced operational costs.
  Chargeback prevention services significantly decrease credit card fraud, which helps companies avoid additional fees for refund transactions. Moreover, the low chargeback rate proves your reliability, which allows companies to maintain small processing fees. This way, merchants effectively secure their revenue and reduce operational costs.

Chargeback services are a paid solution; however, their fraud-prevention functions make them worth the investment. Analyze your company's chargeback data and consider partnering with a reliable chargeback prevention company to ensure the stable development of your business.

Ethoca

Ethoca is a perfect chargeback fraud protection tool for businesses that choose Mastercard transactions. This fraud-prevention application offers several practical features, including:

• Increased customer trust with Ethoca Consumer Clarity
  This feature fosters transparency by providing customers with clear and easy-to-understand descriptions of purchases on cardholder statements. This function significantly reduces confusion and prevents friendly frauds that arise from unclear transaction details
• Increased awareness with Fraud Insights
  Ethoca's Fraud Insight function provides merchants with well-organized data analysis regarding past chargebacks, decline rates, and emerging fraud trends. This feature helps companies identify possible fraud threats in the future before the situation escalates.
• Quick and efficient fraud prevention with Real-Time Alerts
  Ethoca's Real-Time Alerts keep merchants informed of potential disputes the moment they arise. This feature allows companies to resolve the problem with a customer before a chargeback is issued. This way, businesses get a chance to prevent various friendly frauds in situations with shipping issues or accidental policy violations.

Ethoca chargeback prevention features will aid your team in accessing tedious fraud cases, improving your customers’ experience and making your working environment stress-free. Try this fraud-prevention instrument today with Germius CRM.