Tuesday, July 15, 2008

Keys To Reduce Refunds and Chargebacks

A chargeback occurs when a customer contacts a credit card-issuing bank to initiate a refund for a purchase they made on their credit card. The reasons why chargebacks arise can vary greatly but generally, they are the result of a customer being dissatisfied with their purchase from sellers. This is one sure-fire way to loosing out big time on your business profitsIf the number is high in any period you could risk loosing your third party merchant account altogether.

The best way to deal with any chargeback is to prevent it happening in the first place. The following suggestions are very generic and can be used by most businesses to decrease their chargeback potentia

1. Clearly State the Billing Name

First and foremost state the name of your third party credit card processor on your sales pages and include them in your terms and follow up email receipts so that customers are fully aware of what company name will appear on their billing statements. This will reduce the number of customers who do not recognize the billing name on their statements from contacting their credit card issuers for a chargeback. This one factor can lead to an unprecedented number of chargebacks claims.

2. Provide Your Customer Support Details

Provide your email address so that customers can contact you regarding any queries about their order. Make sure that you answer them in a timely manner to avoid unnecessary delays. If a customer is not responded to promptly they are very likely to make a refund request.

3. Offer Lifetime Updates

Offering your customers lifetime updates to your product and services to add value and will encourage them to remain customers in the knowledge that they will always receive your most current edition of your goods.

4. Reward Loyal Customers With Exclusive Privileges

Offer your customers a product that can be used freely as long as they are fully paid members, as part of a membership site. Or use a tool which is only available to customers and cannot be accessed after a refund request is made. As long as your offer is valuable to your customers and members you are will substantially reduce the number of refund requests.

5. Provide The Best Guarantee
Your guarantee could become a thorn in your side if you have a very short time span before customers can test out and use your product. But studies show that the longer the guarantee period the less refund requests are made because customers are more comfortable with their rights to cancel if the product or service does not meet their needs.

This is at your discretion as a merchant so testing is important to work out what is best for you. Remember to take into account that some third party processors have a limit on the maximum refund time their merchants can issue to customers.

6. Accurate Product Descriptions

Avoid making bold claims that are "too good to be true" if you cannot deliver the results. You could be setting yourself up for a big fall and your customers will request refunds if your product description does not fulfill their needs. You could also be breaking the law and be liable to charges if a law suit is brought against your company. Make sure your sale letter accurately reflects your goods for sale and highlight the TRUE benefits of owning the goods.

7. Surprise Bonuses

It is a great surprise when you buy something and receive additional unadvertised bonuses. This can warm your customers to your company and can only please them. It also demonstrates that you do not need to publicize your bonuses because you believe in your product so much that it will sell on its own merit.

I suggested you to get Chargeback Ebook - The Official Global Chargeback Guide to further safeguard against refunds and expensive chargeback costs. Improve your chances of winning that next chargeback from the leaders in chargeback protection. For only $19.95, merchants are able to download this Chargeback tutorial which will guide them in the fight against all types of credit card fraud and help them win any future chargebacks. You will discover that consumers bank decides the outcome of the chargeback, not your Merchant Service Provider, not your bank and not you. The customer may or may not have contacted the merchant about remedying this situation ahead of time. They may even be completely wrong. However, responsibility falls to the seller to ensure that the transaction goes smoothly and the customer is satisfied. A failure somewhere within the fulfillment process, including at the customer service level, can lead to a chargeback. Always respond to a chargeback as quickly as possible. A limited amount of time is available to resolve a chargeback. If you miss the window of opportunity to respond, you forfeit your ability to fight the chargeback. If your processing bank has any more questions or requests, your quick response will ensure that they have enough time to get the relevant information from you.

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