If you’re a retailer or you sell products or services that can be paid for using a credit card, you may become the victim of fraudulent chargebacks. What are fraudulent chargebacks? A fraudulent chargeback is a disclaimer of responsibility for a charge that is initiated by a customer after making a purchase that is not based on a return.

Another way of answering the question of “what are fraudulent chargebacks” is to think about things in terms of someone paying for a purchase, accepting the item and then turning around and requesting a refund. A chargeback is a customer’s way of telling the credit card company that they did not receive what they paid for, and therefore, they do not accept the charge.

This leaves retailers on the hook for the purchase. In most cases, the item has already been taken by the customer, but the refund is automatically deducted by the credit card company.

Talk to the Credit Card Company

One of the most straightforward ways of preventing false chargebacks is to work directly with the credit card company. Be prepared to present evidence that the charge was valid to support your case.

Ensure Your Ordering Process is Secure

You also need to make sure your ordering process makes sense and is secure. If your company accepts orders on the web without requiring customers to create accounts or log into said accounts, you may be setting yourself up for trouble. Anonymous ordering using credit cards can embolden individuals with ill intent, placing your company in the crosshairs of fraudulent chargeback situations.

Communicate With Customers

Aside from communicating with credit card companies, make sure you communicate with customers as well. In many cases, customers initiate chargebacks that may seem fraudulent but are actually based on misunderstandings or customer anger over customer service.

When you take the time to discuss misunderstandings or poor service with a customer, they are often less likely to follow through with a chargeback. In fact, you may even gain repeat business by showing that your company cares.

Author Resource:-

Emily Clarke writes about business softwares and SaaS solutions. You can find her thoughts at virtual kitchen blog.