What are the risks of Chargebacks and how do I reduce them?

What are the consequences of high Chargebacks?

High chargebacks pose significant risks to businesses including financial losses, increased processing fees, damage to reputation and potential loss of payment processing privileges and features. 

A high chargeback ratio can also lead to a business being classified as high-risk, resulting in more enhanced scrutiny and potentially higher costs from payment processors and acquirers. 

So, how do I lower my quantity of Chargebacks?

To reduce your quantity of chargebacks, focus on clear communication on your website, have a strong security policy and provide excellent customer service. This includes providing detailed product descriptions, transparent return policies and accessible customer support channels. 

Implementing robust fraud prevention measures and ensuring accurate billing information can also significantly lower chargeback rates. This can entitle you to lower processing fees and longevity of MIDs.

At Qashpay, we offer best in class fraud and chargeback prevention and monitoring tools via our chargeback management service. This includes automatically preventing chargebacks using MasterCard Ethoca Alerts and VISA Verifi RDR alerts, while recovering lost revenue through automated representment of chargebacks.

You can view more information here.