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Hi there! I’m going to give you some tips on how to prevent chargebacks, because nobody likes to get taken. Everybody thinks a credit card is just like cash. You swipe the card, you take it over the phone, it goes to your bank, everything’s hunky-dory, until all of a sudden it isn’t and somebody is taking advantage of you. You need to know that people have six months to charge something back on their card. So it’s not cash you are giving credit.
Here’s some tips to help you. I’m Gingergaye with Electronic Money Company. We’re going to talk about three different scenarios:
- Card present: if you’re selling little tickets you don’t want to maybe take the time to ask to see somebody’s driver’s license. but if you’re selling cameras, jewelry, furniture you might take that extra precaution and make sure the card has the same person’s name on it as as the driver’s license.
- Over the phone: more times often than not is where somebody can take advantage of you and charge their credit card back or they’re using a stolen card. You want to make sure that the address matches first, that the address on their credit card matches the address they tell you where they live or where you’re shipping it to, this is a verification for you. If you’re really concerned and you’re selling a lot of high ticket items you might want to have them sign an invoice. With today’s technology It’s very easy to email somebody an invoice ask them to sign it and scan it back even in a contract.
- Signed delivery receipt: make sure that the card holder is actually signing for the delivery. Don’t have the spouse sign, It’s not appropriate, don’t have the mother sign, an office worker that doesn’t work. It has to be the card holder signature. The third way you take cards is over the web you know and on an e-commerce site. So again, set up with your gateway that you can do address verification that way you can double check before you ship the item whether the address matches. If it doesn’t match that’s a flag… That’s a bell going off and you might want to call that person. Maybe they have a legitimate reason. They just moved and you want to accept it but maybe it sounds fishy and you don’t want to ship it to a different address. There’s advanced technology you can add behind the scenes on your website that verifies people’s IP addresses. Do they order things frequently from their computer do they have any history of chargebacks? That can be detected with advanced technology.
So those are some simple tips that i presented to you. If you have specific questions maybe It’s happening to you right now and you need some help, feel free to give us a call at Electronic Money Company 505-296-2847. We’re happy to answer all questions even if you’re not doing your processing with us we like to help small business owners grow their bottom line. We’re all entrepreneurs together.
Attention Merchants: Learn how to prevent fraudsters from stealing your money and your products or services with a chargeback.
This video will give you tips on how to prevent chargebacks for swiped, card-present transactions, for payments you take over the phone and then enter into your POS manually, and for E-commerce payments.
Accepting credit cards for payments is offering credit. It is not the same as accepting cash. Find out how you can prevent chargeback losses!
