Even as retail merchants, ecommerce merchants, and financial institutions have tried to rise to the occasion of providing services to their customers, fraudsters and criminals have been working overtime to take advantage of people who are already hurting because of the down economy.
Honestly, credit card statements and bank statements can be some of the biggest sources of chargebacks, and can be a real pain for both merchants and banks. When a consumer doesn’t recognize a charge on their bank statement, they immediately call the bank and dispute the charge.
If you’ve ever left the house without your wallet or purse, there’s a good chance you still had your mobile phone with you. Of course, you didn’t discover the problem until you arrived at the coffee shop or grocery store, reached for your credit card, and discovered that you had forgotten it.
Preventing and reducing chargebacks is always a problem for merchants. Keeping your chargeback-to-transaction ratio below 1% is an ongoing problem as well. And keeping up with the potential problems is enough to keep anyone up at night.
If anyone has ever told you that “chargebacks are the cost of doing business,” that’s nonsense. Complete and utter nonsense.
If you’re any kind of retailer, whether brick-and-mortar, full ecommerce, or even a click-and-mortar operation, you’re going to face a lot of chargebacks for as long as you accept credit cards. Chargebacks are a royal pain because it means you either have an unhappy customer, a problem with an item you sold, or even fraud.