Do you have a dispute and fraud prevention strategy at your business? Creating a strategy and using some best practices can help you prevent fraud from occurring and reduce chargebacks and potential customer losses.
Clear and Timely Customer Service
Contacting your customers in a timely manner with clear communication can help prevent many of the reasons for disputes. If your customer has an issue and a refund or replacement is needed, acting fast will help reduce the likelihood that the customer will opt to dispute the payment. Customer Support information should be easy to find. Using tools such as PaidShipping's email notifications for pick-ups and deliveries will keep your customers informed of their order status.
Don't forget to include clear policies for cancellation and refund in your terms of service. If you can set up your orders so that your customer is required to agree to terms of service, this will increase the likelihood that an issue will not develop into a card dispute.
Check the shipping/billing addresses
It is always safest to ship to addresses that have passed postal code and street address checks.
Ensure that you have a verifiable billing address and check carefully when a shipping address is different from the billing address.
Look out for indicators that could indicate suspicious activity:
- The order is for your most expensive products or the order is much larger than normal
- Changes were made to the shipping address after the order was placed
- The order includes products with a high resale value
- The billing and shipping address are in different countries.
Taking time to closely review the order and shipping address information can help you decide if there is a risk that needs to be investigated.
Received a chargeback? Learn best practices on how to respond to a dispute. Click here