Every dispute initiated by a consumer hits merchant's reputation. The best way to minimize chargebacks is preventing fraudulent charges.
There are some steps merchant should take to control fraud activity and chargebacks:
- Valid refund policy.
Creating of the list of strict rules indicating which charges must be refunded as soon as possible to avoid further chargebacks;
- Black lists base.
Setting up synchronization with bank black lists. In case of receiving transaction decline with fraud reason or chargeback do not try to switch customer on another bank;
- Blocking of high-risk locations.
It is more secure for merchant's business to block charges from locations where service \ product is not provided;
3D-secure is an extra level of security for Visa and MasterCard payments, which protects from the unauthorized usage of a credit card. It allows customers to create and assign a password to their card that is then verified whenever a transaction is processed through a site that supports the use of the scheme.
- Fraud velocity filters.
Adding limits for transactions per day / week / by email / IP / credit card will help to reduce the possibility of fraudulent transactions;
Customers must be aware of all the terms your web site propose to agree before making payments and use the service;
- Proper Customer Support 24/7.
If a merchant provides prompt and attentive customer service, offering high quality product and timely resolving issues, there's a small chance that a customer will have a valid reason to file a chargeback;
- Smart anti-fraud solution.
As an additional tool to prevent fraud Maxpay launched anti-fraud solution to protect merchants' online business.
Covery brings together event chain analysis, feature engineering, rule management and machine learning to obtain the most accurate results. The solution is fully customizable and suitable for any industry, merchant business model or traffic source.