What is a chargeback and how can I prevent them?

A chargeback is a reversal of a credit card payment, typically initiated by the cardholder through their bank or card issuer.

Chargebacks occur when a customer disputes a charge, claiming it was unauthorised or that the product or service was not delivered as promised. If the bank sides with the customer, the merchant loses both the funds and the product or service provided.

This is why it is important to take a pro-active approach to reducing fraud and chargebacks and we can support you with this.

How can I prevent chargebacks?

• Provide clear descriptions: Ensure your product or service descriptions are accurate and detailed and that shipping information is clear.
• Communicate effectively: Stay in touch with customers, respond to inquiries promptly and resolve any issues before they escalate.
• Use tracking and delivery confirmation: Always ship with tracking numbers and require delivery confirmation to prove items were received.
• Offer good customer service: Encourage customers to contact you directly before disputing charges with their bank.
• Secure payment processes: Use fraud prevention tools (such as AVS, CVV, 3D Secure) to ensure transactions are legitimate.
• Refund policy clarity: Clearly state your refund and return policies on your website to avoid misunderstandings.