Tobacco Chargeback Prevention Experts

Online businesses are frequently destructed by chargebacks, especially in the tobacco industry. Over the years, we’ve worked with some of the largest tobacco and vape companies on the market, helping them stifle their chargebacks, ultimately increasing their bottom line.

Key Takeaways

  • The tobacco industry is plagued by chargebacks due to online subscriptions
  • Ethoca and Verifi chargeback alerts can significantly help you fight chargebacks.
  • Chargebacks destroy your bottom line.
  • Too many chargebacks can result in the termination of your account.
  • All tobacco merchants can benefit from fraud prevention tools such as CB-ALERT.

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What Are Tobacco Chargebacks

Tobacco chargebacks occur when customers dispute their transactions with their bank rather than dealing with you, the merchant. They result in additional fees and can even lead to higher payment processing fees.

Why Do They Occur?

They can occur for various reasons. Sometimes, the retailer can file chargebacks against the distributor if the products are damaged or are not quality. In other cases, the customer can file the chargeback on the merchant if they’re unhappy with the purchase or if it was simply fraud.

Why CB-Alert?

Using CB-Alert enhances your ability to proactively manage chargebacks in your tobacco retail business. We provide real-time alerts when potential issues arise, allowing you to address them promptly and prevent chargebacks before they occur.

By monitoring transactions and flagging any anomalies, CB-Alert helps you identify and resolve disputes early on, saving you time and money in the long run. 

What Makes Tobacco Chargebacks Expensive?

The complex regulatory environment surrounding tobacco products often results in fines and penalties for non-compliance, which increases the overall cost.

Additionally, the intricate nature of tobacco chargeback processes requires specialized knowledge and expertise to handle effectively, which can incur high operational expenses.

Chargebacks are also time-consuming for the merchant and can lead to higher payment processing feeds down the road.

Preventing Tobacco Chargebacks

Below are our top tips for preventing tobacco shop chargebacks:

  • 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. 
  • 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: Swiftly address customer questions and concerns for happier customers and fewer chargebacks.
  • Extend a Helping Hand with Refunds: Refunds are always better than chargebacks.
  • 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. 

Choose CB-Alert For Your Tobacco Chargeback Prevention

Tobacco chargebacks can ruin a company’s finances quickly. At CB-ALERT, our mission is to help you free up your time and take care of the heavy lifting that chargebacks are.

With over two decades of experience , we can help grow your business and be a vital piece of the puzzle. Below are some of the things we bring at CB-ALERT:

  • Alerts in real-time Ethoca and Verifi
  • 24/7 customer service
  • Transparent pricing
  • RDR
  • Gateway/CRM agnostic
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