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December 27th, 2018

Chargeback Prevention Tips: Exclusively For The Medium-Risk Businesses

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Be it any business, it is categorized either high-risk or low-risk. However, in the middle of these two categories is one more category, medium-risk business. Not everyone knows but explaining medium-risk is the most complex thing. Businesses that deal in card-not present payments do not come under the high-risk category. However, such businesses can turn high risk if they don’t manage the chargebacks the right way. Until then, they are termed as medium-risk.

Recognizing Medium-Risk Business

Well, there isn’t any scale that measures the risk level in a business. But there are certain signs that can help to identify whether the business carries low-risk or medium or high.
Business people must keep the chargeback number below 1% else they could be subjected to fine or penalty. The same thing is valid for medium-size business wherein the merchant must keep the chargeback under the threshold.
Exceeding the monthly chargeback repeatedly, makes the merchant susceptible not only to fine but also labels them as high-risk business owner.

Enhancing The Customer Service

In terms of chargeback, a lot of difference is possible through customer support. Good customer volume surely provides some relief from unwanted chargebacks. Below are given some useful tips that have the potential to improve the customer service like anything:

  • 24/7 Support: If this is not possible, providing chat and email support helps.
  • Attending and fixing customer’s problems at the earliest in the most convenient way.
  • Following up with the customers and asking their experience as feedback from them helps to the improve the services further.

There is no doubt that good customer service is the way towards lowering the possibilities if frauds. Moreover, it is also important to explain all the terms and conditions to the customers before they engage in any type of purchase.

Following The Card Network Rules

When a merchant files an application for the merchant account, they are helped with the needed instructions they would need to follow throughout the business. Not just this but the card network also has a number of methods that help to handle the fraud transactions.
Merchants who don’t obey the rules are at risk of facing troubles later. On that note, here are someways to stay at bay from medium-risk business chargeback:

  • Before continuing with credit card transaction, it is good to get complete authorization either from the bank or card network.
  • Goods and services should be delivered on time and customers should be informed if there’s any change in the delivery.
  • For various types of payments, fraud-proof transaction tools are important to use.

Though it is not possible for a merchant to eliminate the chargeback completely but yes, they can reduce it by using the chargeback prevention tips wisely.

Chargeback Management

Every business needs to realize the importance of chargeback management. Not maintaining it carefully can harm the revenue in the worst ways. One of the best ways to manage it is by hiring a chargeback management company. Other than this, creating own team to tackle the chargebacks is also one dependable way.
Small business can learn the chargeback reason codes of different card networks like Discover, Visa, American Express and MasterCard.
Last but not the least, getting in touch with a chargeback management company also helps big time.
So, this was it about managing chargebacks for medium-risk business. If you want to know anything more or have any concern, feel free to get in touch with us whenever you want. Until then, keep away from chargeback to keep the revenues and traffic volume coming.

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