With the market cap of kratom rising to 1.5B in 2024, the Kratom industry is set to continue to expand. If you’re a kratom merchant and you’re frustrated with chargebacks or looking to protect yourself from them in the future, you’ve come to the right place.
This page breaks down everything you need to know about chargebacks related to the Kratom industry and explains as to why you should choose CB-ALERT to reduce your chargebacks.
- Kratom chargebacks occur when customers dispute a charge for kratom on their credit card statement.
- Secure and transparent payment processes, clear product descriptions, and easy-to-understand return policies are crucial in minimizing chargebacks.
- Customer disputes, legal status issues, and fraudulent activities can cause Kratom chargebacks.
- CB-ALERT specializes in significantly reducing our kratom clients’ chargebacks via chargeback alerts and management.
What Are Kratom Chargebacks?
Often, you’ll encounter kratom chargebacks when a customer disputes a charge for kratom on their credit card statement. It’s a process initiated after a customer questions the transaction’s legitimacy. As a merchant, you’re then faced with the task of providing compelling evidence that the transaction was legitimate and authorized.
Starting your application for CB-ALERT today can significantly enhance your kratom business’ chargeback prevention strategies. At CB-ALERT, we make applying for your merchant account seamless and quick.
Below, you’ll find the details we need to kickstart the process with CB-ALERT:
- Company name
- Official business address
- Descriptor for your merchant account
- Merchant account number issued by your payment processor
- Access to your sales system for refunds/alert resolutions on your behalf
The more comprehensive the information you provide, the sooner we can get you up and running to tackle those chargebacks head-on.
Why Is The Kratom Industry Risky?
In spite of its popularity, the kratom industry is deemed risky due to a few prevailing factors that you should be aware of.
Primarily, kratom’s legal status is a significant concern. It’s legal in some U.S. states and banned in others, creating a complex regulatory landscape you must navigate. The FDA also still doesn’t approve it for medicinal use, leading to potential legal issues.
Additionally, the lack of quality control standards can produce products of varying purity and potency. This unpredictability can lead to customer dissatisfaction, product returns, and chargebacks.
Why Are Kratom Chargebacks Costly?
Chargebacks are expensive for several reasons:
1. Time/Resources: Managing chargebacks requires significant time and resources, which adds to the overall cost.
2. Potential for disputes: If disagreements arise about the validity of a chargeback, it can lead to expensive and time-consuming arbitration.
3. Lost revenue: When a chargeback occurs, the sale is reversed, and the product or service you provided and any associated future revenue are lost.
4. Damage to reputation: Chargebacks can negatively impact your company’s standing with credit card processors, potentially leading to higher processing fees or losing the ability to accept credit card payments altogether.
Kratom Chargeback Prevention
Navigating your business’s chargeback prevention in the kratom industry requires clearly understanding the unique challenges and risks involved. You must be aware that the nature of kratom and its legal status poses a high risk for chargebacks.
Here’s a quick checklist for chargeback prevention:
- Fraud Prevention Tools Stay sharp and ahead of the curve using tools like 3DS2 authentication, RDR, and chargeback alerts to outsmart fraudsters.
- Billing Descriptors: Ensure that your business name on financial statements is clear and unmistakable, like putting a bold sign on your shop for easy recognition.
- Partner with CB-ALERT: Team up with CB-ALERT, the experts dedicated to keeping fraudsters at bay. It’s like having a trusted ally by your side.
- Add an Extra Layer of Security: Prioritize customer authentication to shield against chargebacks and ensure each transaction is rock-solid, like adding an extra lock to your door.
- Deliver Exceptional Customer Care: Treat your customers like royalty. Swiftly address their questions and concerns for happier customers and fewer chargebacks.
- Extend a Helping Hand with Refunds: Offering a refund can be like extending an olive branch.
- Verify Customer Readiness: Before diving in, ensure your customers are financially prepared for your coaching services, like ensuring your team is ready for a big game.
- Keep Detailed Records: Think of your records as a keepsake of your coaching journey. Document every interaction – names, orders, and conversations. They’re your safety net in case of disputes.
- Scrutinize Every Transaction: Like checking IDs at the door, be cautious of orders from unfamiliar places or significantly higher amounts. Verify each one to keep chargebacks at bay.
.Now that you understand what you need to do to defend against chargebacks, please fill out the application below to find out what CB-ALERT can do for you.
When Chargebacks hurt, call CB-ALERT.