How You Can Prevent Chargeback

Written by Small Business Magazine on April 13th, 2016. Posted in Chargeback protection ecommerce, Online payment systems

chargebackA chargeback is a form of customer protection by the bank in case of fraud. This allows account and cardholders to file a complaint about fraudulent transactions, potentially receiving a refund. As a merchant, if you cannot or do not prove that the transaction was legitimate, the bank will take back the entire amount plus a fee. The fee can be as high as $100.
Reasons Chargeback Occurs

Fraud: Fraudulent transactions are the most common cause for chargebacks. This occurs when a credit card is used without the consent of the cardholder, often by means of theft or identity fraud. In this case, the merchant is held responsible.

Item Not Received: A chargeback can occur when a customer does not receive an item she paid for by credit card.

Technical Issues: Technical problems can occur with the credit card payment system. Miscommunication between the bank and the merchant can cause cardholders to be charged twice for one transaction. If there is a problem during the authorization process, the account may be charged even if the transaction is declined.
Tips for Preventing Chargebacks

  1. Make your refund policy clear: Your refund policy should be transparent to all customers. You may even make reading the policy a requirement for customers to complete a purchase. Also, be sure to process refunds in a timely manner and inform the customer about how long it will be before the credit is added to their account.
  2. Make your contact information visible: Customers need to be able to contact you in case they have a question about billing or delivery. If they do not know how to contact you, they are more likely to cancel and you will receive a chargeback. If you use another business name for billing, make it clear to customers so they are not confused when they see an unknown name on their statement.
  3. Contact suspicious orders: Call or email orders that seem odd or particularly large.
  4. Get proof of delivery: Provide a shipping log that says when the customer received the goods.
  5. Look at billing and shipping addresses: Orders often turn out to be fraudulent when they have a domestic billing address and a foreign shipping address.

Credit card fraud costs the U.S. over $8 billion each year, and the projected amount of worldwide fraud loss in 2020 is estimated to be as high as $35.45 billion. In 12% of card fraud cases, a website is the point of contact, so as a merchant it is essential to make sure your site is secure.

B2B Credit Card Processing With Arrow

Written by Small Business Magazine on January 25th, 2013. Posted in B2b credit card processing, Online payment systems, Payment processing companies

Internet merchant accounts

If you are looking for an easy B2B credit card processing provider, Arrow Payments is one of the premier venues in the field. The number of payment processing companies out there right now is quite large, but Arrow prides itself on offering a feature rich and easy to use system that can easily handle B2B payments, processing credit cards, invoicing, and more. Level 2 and level 3 processing is also a snap with Arrow, making this processor one of the few that are particularly well geared towards the needs of business customers and their unique needs. ERP vendors, billing and collections agencies, outsourcing firms, and more are just some of these providers that happily and effectively use B2B credit card processing with Arrow on a regular basis to keep things moving along.

Internet merchant accounts are another B2B credit card processing opportunity for Arrow, especially when it comes to mobile web purchases. With 42 percent of those making mobile device purchases being in the coveted 25 to 44 year old demographic, the reliable and flexible platform that characterizes the cloud based payment processing software used by Arrow is especially important when it comes to ensuring a smooth, painless transaction for all involved.

Beyond mobile device purchases and B2B credit card processing, it should be noted that Arrow Payments can help with bill collection issues as well. If you run a service that sends out regular bills, make sure that you offer an electronic payment option in order to keep up with the times. Electronic payments surpassed physical check payments back in 2007, so failing to keep pace with this development can spell trouble for your company in short order.

If you have any questions or concerns about the various products and services offered by Arrow Payments and what the company may be able to do for you, contact them as soon as possible for more information. Hopefully, your questions will be answered in short order!