In this article, we will be helping you to protect your business from chargebacks in QuickBooks Desktop.
A chargeback basically happens when a sale is returned to your business. There can be multiple reasons behind a chargeback and can be a waste of your time and money. You need to follow the tips given in this article to reduce chances of chargebacks on your business.
When in doubt
If you find something suspicious or odd about a transaction, contact your customer. This can be done in many ways. You can call them or send an email and ask questions regarding thee order. Re-verify the billing and shipping address.
Be EMV (Europay MasterCard Visa) compliant
Being an EMV compliant is considered as the best protection against any possible chargeback.
Don’t swipe the card if it has chip. EMV cards comes with chips that gives additional security features. A unique code is generated every time you use it for a payment and the code can only be used once.
Magnetic stripe cards come with fixed assigned data and whenever you swipe it for a payment, the payment processor matches it to the bank account. This can be useful to create counterfeit swipe cards.
Request identification with a credit card
Always check your customer’s ID for face-to-face sales. Verify the name and signature match.
Shipping and proof of delivery
Use online tracking for shipping orders. Use the delivery agency that asks for signature to complete the delivery process. If the delivery is done and the package has been picked up, get your customer’s signature for proof.
Be clear about refund and return policies
The Card Associations shows complete disclosure of a return or cancelation policy like:
By signing or initialing in close proximity of the policy, your customer will acknowledge and agree to the policy. A retail merchant needs to have the policy printed on the sales draft and it should at least have ¼ inch of size.
If you are an e-commerce merchant, you need to show your policy on your website. The customer has to accept or agree with the terms and conditions while completing the payment process. A page of terms and conditions that takes customer away from the cart is not a disclosure. This is a kind of proof that the customer has read and agreed to your terms and conditions.
Watch out for orders from foreign countries
Give special attention to large amounts or expensive items including those who asks for next day or same day shipping. Most of the fraud orders comes from places such as the Middle East, Asia, Africa, and South America.
Use Address Verification System (AVS)
Address Verification System checks to ensure that the address provided for an order is similar to the one mentioned on card holder’s billing statements. This service is only available for US addresses.
Frauds who use stolen card addresses don’t enter the original billing address of cardholder. Be careful about the orders where billing and shipping addresses are not same.
Let customers know what name will appear on their statements
Inform your customer about what name will be shown on their statements to make them recognize the transaction. This can avoid a lot of confusion.
Respond to retrieval request and chargeback letters as soon as possible
Make sure you revert back to all retrieval requests and chargebacks. Share all your documents to resolve issues as per the date mentioned. Even if the issue is from customer’s side and you don’t reply, you will be held liable for the funds.
Collect CVC2 and CVV2 verification numbers
Majority of credit cards contains three-digit security code behind the credit card number.
Only the American Express cards contains four-digit security code available on the front of the card and above cardholder’s account number.
As per Visa, having CVC2 and CVV2 verification number can reduce chances of chargebacks and any other pass-through fee that can be charged while a credit card order is processed.
Most of the online payment processors allows providing security codes while processing credit card orders. This additional security measure allows you to prevent again frauds.
Watch out for orders when customers use free email addresses
The orders from customers using free email addresses while ordering needs to be looked carefully. Such as Hotmail, Yahoo, and many others.
Free email users can be almost impossible to track, so fraudulent orders are typically made using them.
Reach Us For More Information
Hopefully, you find this article helpful for you in protecting your business from possible chargebacks. However, QuickBooks Desktop ensures security to the best limit, but you need to be a bit more careful as well. In case, you require any kind of assistance, dial our toll-free QuickBooks Support Phone Number +1855-565-6250 and get your issues resolved.