While chargebacks can happen, it is possible to take some steps to help prevent them and encourage a positive merchant-customer experience. The top ways to prevent chargebacks are:
  1. Sale authentication and verification for in-store purchasing
  2. Requiring proof of ID for large purchases
  3. Enforcing cardholder verification methods such as signature, entering a pin code, and chip verification
If you are ever in doubt as a merchant, always remember there is an option to call the bank for verification purposes.

More Tips for Preventing Chargebacks

Read the below tips to get a better understanding of avoiding chargebacks.

Helpful Customer Service

When it comes to customer satisfaction, efficient communication between merchant and customer is crucial. Being easily accessible and resolving issues quickly creates trust and therefore prevents chargebacks. Whether you're responding through email communication or via social media, it is always important for customers to know you are available to answer their concerns in a timely manner.

Terms & Conditions and Policies

Being transparent with providing your Terms & Conditions to customers is another important aspect in establishing trust. Additionally, providing clear and easily findable cancellation and refund policies on your website and booking pages allows guests to know what to expect at all times.

Refunds

It can be beneficial as a merchant to be forgiving when it comes to giving refunds to customers. Refunds are less of a hassle and less expensive than chargebacks.

Effective Email Communication

Emailing customers order confirmations for their purchases is a great way to remain transparent and showcase all the information they need shall an issue arise. Furthermore, confirmation emails protect you as the merchant if a chargeback does indeed happen because there is a clear record of sale.

Clear Payment Processes

Sometimes customers don't recognize the merchant name associated with the billing used and confusion can ensue because of it. Make sure to use a clear billing name that does not differ too much from your branding name so your guest can be sure to know the charge is legit.

Limiting Unexpected Fees and Charges

Chargebacks related to unexpected fees that were not clearly communicated to the client are generally closed in the client's favor. Hidden or unexpected fees can negatively affect the customer's experience and create resentment. If there are additional fees that can arise for certain situations, be sure to clearly communicate this to customers.

Credit Card Verification Policies (3D Secure)

Guesty supports 3D Secure technology for all sources of reservations when payments are handled through Guesty with any payment processor. This includes direct bookings and integrated channels. Click here to learn more.
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