5 Tips to Prevent Chargeback Fraud

Posted on March 3, 2014 by popadmin

There are many laws and regulations to help consumers. Sometimes it seems like merchants are left defenseless. There are ways that a merchant can protect themselves against chargeback fraud. Chargeback is when the customer pays for a good such as over the internet and claims that it was never delivered. The customer wants their money back. To protect themselves, credit card processing merchants must take step so they do not get hit with fraudulent charges.

The order size can put a merchant on the lookout for chargeback fraud. If a customer orders a much larger quantity of the product then normal order this can be a sign. If many customers order ten items and then the merchant gets an order for one hundred items this may be a sign of fraud. They need to verify the order information before shipping anything out.

If the billing address and the shipping address of the customers order do match up this can be a sign for possible chargeback fraud. While this is not true are all cases the business should take some time to verify the information before sending out the order.

There are many shipping companies that require the customer to sign for the package when they are delivered. This service may cost a couple of dollars more per delivery but the customer cannot dispute they go their package if they signed for it. This could save the company a lot of time and trouble in the long run.

Customers may not recognize the name of the company when they get their credit call bill. The name, address, phone, number, and other relevant information the business should have put on the credit card statement. This will help the customer remembered what they ordered and where they ordered it from.

When in doubt the business needs to verify the address they are shipping to. This can be done through an address verification service. The zip code should at least match the one provided by the customer. They should also verify the zip code on the credit card used with the issuing bank. These are just some of the things a business can do to protect itself against chargeback fraud.

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