By Rich McIver, founder of Merchant Guide LLC
Chargebacks are unavoidable in a retail business, but preventing them could be easier than you think.
As an independent retail business, affordable credit card processing can sometimes be difficult to find. It is even more unlikely to find competitive credit card processing rates if your business has a chargeback ratio in excess of 0.5%. Not only do chargebacks mean higher processing rates with your credit card processor, you also have additional costs in a variety of forms, for example the likelihood of returned merchandise, purchase errors, and the most common chargeback — fraud. In extreme cases independent retail businesses can accumulate chargeback rates over 1% which can push them to the category of high-risk merchants, which makes finding cheap credit card processing solutions nearly impossible.
As a consequence, acknowledging the risk of chargebacks and initiating chargeback prevention strategies can help lower your disputed transaction count, and may reflect to credit card processors that you are taking steps to decrease your chargebacks, leading to cheaper rates. In this article we will discuss three chargeback prevention tips your retail business may implement immediately to help successfully open and maintain a merchant account.
Please log in or register below to read the full article.
|
|
|
|
|
|
|
|
|
