How to Fight Credit Card Chargebacks

Article Written by : Merchant Capital Inc

Here is a situation which you may be able to relate with. Jack is the owner of a small floral delivery company in the heart of his downtown neighborhood. He recently subscribed for a merchant account so he could take credit cards as payment. He soon found it was a great decision since his sales went up by 33% in just two weeks. But soon after, jack noticed several credit card chargebacks.

The chargebacks all seemed to be for various reasons. One customer claimed they never received their delivery so they disputed the transaction with their credit card company. Another customer said the flowers were delivered but in rough shape by the time they got to her and still another disputed the charge because the flowers were not what they ordered.

The sad part is that all these claims were frivolous. Jack had a reputation of having high quality floral arrangements as well as a trusted courier for his deliveries. Jack was a victim of customers who wanted something for nothing. If you find yourself in this situation, there are some things you can do to fight credit card chargebacks.

One important step to take is to get a signature for all deliveries made. Be sure the courier is aware of this when he sets out on his deliveries. For customers who claim they never received their delivery, all you need to do is show a copy of the signed delivery receipt. For those who state their delivery was in poor condition upon arrival, showing the part of the receipt stating the customer can receive a refund as long as their return their purchase in a certain amount of time.

You don’t have to let dishonest customers take advantage of you. Stand up for your reputation by proving them wrong!

Typical Features for a Payment Terminal

In today’s retail world, the cash-only business is a fast fading fixture of the past. These businesses represent significant security risks to their owners, and owners are also finding that customers aren’t carrying cash on hand like they used to. The world has largely shifted to electronic transactions, and the POS terminal has become a fixture for these businesses that they cannot afford to do without.

The modern POS terminal has features that can accommodate nearly any aspect of a transaction.

Multiple Methods of Entry

Customers who use debit or credit cards don’t always have a card with a working magnetic strip. In these situations, it’s helpful to have a keypad to enter information on the customer’s behalf. In order to accept debit card payments, the customer also has to input his PIN into the keypad.

Different Functions

Most modern businesses have a developed refund or exchange policy, and the POS terminal needs functionality to support those actions. Loyalty programs are also becoming popular, and gift cards never truly fell out of style. POS terminals also make it easier for restaurants to accept tips and gratuities from customers.

Support and Security

All of this functionality requires a solid support system, including the ability to remotely update terminals and patch out vulnerabilities. In addition, businesses also benefit from easier setups because so many of these terminals allow for remote initialization.

Aside from security patches, there is also secured PIN pad authorization, which is crucial for keeping terminals locked down.

Bio: As former CEO of AlertPay Inc., Firoz Patel represents a unique combination of experience and leadership skills. Read an article about Payza here to learn more

How Merchant Accounts Work

If you have a business today, you need to have a merchant account. A merchant account will allow you to accept credit cards from customers. Traditionally, people use to pay for goods and services with cash but nowadays, people hardly use cash anymore since it is more convenient for them to just swipe a credit card. In addition, credit cards are more secure than cash. People can track all their purchases with credit cards unlike cash.

There are several companies that offer merchant accounts which you can set up. You want to be sure to pick the best account for your particular needs. Your needs will depend on what kind of transactions you will be accepting and how many transactions you think you will handle.

Another consideration for you to think about is the kind of terminal you will require. The credit card terminal is the device that will allow you to accept the credit cards and will also allow communication between you and the credit card company. Basically the way that it works is that the customer will swipe their credit card through the terminal. The terminal “checks” with the credit card company of the customer to be sure the funds are available or more specifically, that the card is active and the transaction is approved. You then get a message stating the transaction was approved or not approved. A number will be made available for the customer to call if their transaction was not approved.