When Credit Cards Are Disputed
When you set up shop and allow for payments via debit and credit cards, there are numerous advantages- including spontaneous shoppers, and people who will buy more when they can put it on a credit card, but there are also a few disadvantages as well. One issue many retailers discover when they first start accepting credit cards is not only will they be responsible for paying the various fees associated with accepting credit or debit cards as payment, but accepting credit cards means you also have to deal with the occasional credit card dispute.
One common dispute will result in what's called a charge back. Credit card charge backs happen when a customer disputes a charge made on their credit card, and your bank transfers the liability to you and requires that you pay the money back. There are two main reasons why a charge back occurs-
Fraud
Poor Customer Service
If a cardholder decides to dispute a transaction they find on their credit card statement because they say the card has been stolen or someone used the card without their permission, then the retailer is responsible to recover that money. The cardholder's credit card will be refunded and the retailer is out the money from that sale.
If your company is not providing quality customer service, a customer may not receive their ordered items or they might receive defective items- in which case they're going to dispute the purchase and you will be required to pay that money back when the bank submits the charge back to your business bank account.
There are many levels of protection provided to retailers who accept credit cards as payment. Technology provides us with a secure online environment that encrypts the credit card details and personal information of the cardholder as it's transmitted over the internet. Technology also provides various card verification methods that ensure that the person submitting the order has the card in hand- and hopefully, they're the owner of the credit card account.
Unfortunately though, there is no fool proof protection to avoid all types of credit card fraud, and a customer can submit a charge back up to six months after the date of purchase.
To minimize the number of charge backs you get hit with, be sure your online shopping cart or website takes the necessary steps to verify the identity of the person placing the order. There are many different ways to try and avoid fraudulent activity online, including address verification, security code checking and for internet transactions- you can use Verified by Visa and MasterCard's SecureCode.
Another step you can take to minimize the number of charge backs you receive is to ensure that you are providing high levels of customer service. Make sure each customer is getting the items they order, and use processes that ensure that only quality items are being shipped. Take time to make sure items are shipped in proper packaging as well, to minimize damages that could occur during transit of orders.
For in person transactions, you can help minimize the charge backs by requiring that customers sign their receipt and having your cashiers actually take the time to compare the signature with the signature on the back of the card. You may be surprised at the number of retailers that skip this step! If the signatures match, the customer will not be able to submit a dispute that results in a charge back at a later date, so it's well worth the extra thirty seconds or so to compare the signatures. If the cashier doesn't believe the signature's match, he or she can require that the customer use another form of payment.
Related Tags: credit card, credit, interest, debit card, ipr, debit, charges, bank statements
This article has been provided by Creditor Web. Creditor Web has the articles and other credit card processing resources to help you choose the right provider. Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are