Fashion merchants deal with chargebacks more than industries, especially when starting out. Being aware of this and creating a prevention strategy is key when growing your brand.
In this page, we will explore why chargebacks in the fashion industry are so common and explain why we believe we can help your business prevent chargebacks.
- The fashion industry experiences some of the highest chargeback ratios out of any industry.
- High return rates in the fashion industry contribute to the common occurrence of chargebacks.
- Each chargeback can significantly cost a fashion business, including refunded transactions and operational expenses.
- Implementing preventive measures such as detailed product descriptions and excellent customer service can significantly reduce the occurrence of chargebacks in the fashion industry.
- Hiring CB-ALERT for your chargeback management can significantly reduce your chargebacks, saving you time and money.
Applying For Chargeback Services
At CB-ALERT, we make applying for your chargeback management services a breeze. We will need the following information to expedite the application process:
- Company name
- Registered business address
- Merchant account descriptor
- Merchant account number issued by your payment processor
- Access to your sales system to provide refunds/resolve alerts for you
What Are Fashion Chargebacks?
Fashion industry chargebacks occur when a customer calls their bank to dispute the transaction rather than dealing with the merchant.
Due to industry giants such as Amazon, many fraudsters think they can get away with returning items after wearing them, even though they had no intention of paying for the items.
Why Are They Costly?
Branding and reputation are everything when it comes to the fashion industry. Every chargeback damages a merchant’s reputation and trust with their customers.
The merchant is also responsible for shipping costs and chargeback fees.
Why Do Fraudsters Target Fashion Merchants?
Fashion chargebacks occur for several reasons, from sizing issues to wrong products delivered to quality issues.
The fashion industry experiences more chargebacks than other industries because many fraudsters know they can get away with it.
To prevent this, merchants must clearly state their return policies multiple times during checkout.
Many fraudsters will also purchase a product, wear it, and return or dispute the charge.
How To Prevent Fashion Chargebacks?
To mitigate the substantial costs associated with property management chargebacks, as discussed previously, we recommend the following:
- Deploy Advanced Fraud Prevention Tools: Incorporate robust tools such as 3DS2 authentication, RDR, and Ethoca/Verifi alerts.
- Ensure Recognizable Merchant Descriptor: Guarantee that your company’s descriptor name aligns with your online storefront name, facilitating easy customer recognition.
- Collaborate with CB-ALERT: Partner with CB-ALERT to proactively identify and prevent potential fraudsters before chargebacks occur, enhancing your overall risk management strategy.
- Clearly Communicate Transaction Details: To enhance customer understanding ensure transparent communication of transaction details, including the purchase price and associated fees.
- Consider Refunds as a Preventive Measure: Refunding is often a cost-effective alternative to navigating the complexities of chargebacks. It also increases the likelihood of retaining the customer.
- Provide 24/7 Customer Service: Offering round-the-clock customer support is pivotal in countering chargebacks. This accessibility allows for timely issue resolution, refunds, or dispute resolution before customers involve their banks.
- Utilize Clear and Concise Billing Descriptors: Guarantee that the billing descriptor on customers’ credit card statements is clear and easy to comprehend, minimizing the risk of chargebacks stemming from confusion.
- Maintain Accurate Records: Keep meticulous records of all transactions.
- Monitor and Promptly Address Chargebacks: Leverage chargeback alert systems to stay alert regarding disputes and address them promptly, preventing further escalation.
- Scrutinize Irregular Orders: Questioning irregular orders is crucial when preventing chargebacks.
Choose CB-ALERT For Your Chargeback Management
Now that you understand how to prevent chargebacks for your fashion business, choosing the right solution for chargeback management is essential.
That’s where CB-ALERT comes in. With CB-ALERT, you can effectively manage and dispute chargebacks, minimizing the impact on your business.
Our comprehensive chargeback management platform provides real-time alerts, allowing you to take immediate action when a chargeback is filed. CB-ALERT also offers robust reporting and analytics, giving you valuable insights into chargeback trends and patterns.
Using CB-ALERT, you can streamline your chargeback management process, increase your win rate, and reduce revenue loss.
When chargebacks hurt, call CB-ALERT.