Consumer Clarity

5 Ways Consumer Clarity Can Eliminate Chargebacks

Consumer clarity is the leading cause of chargeback management. The more information you can convey to your end-consumers, the less likely they will dispute a transaction. However, not all consumer-facing information can be used as padding for warranties and guarantees. There are various ways consumer clarity can eliminate credit card chargebacks.

1)     Make sure terms and conditions tell consumers how risk is passed on to them. When you contact customers with pre-purchase questions or requests, you should also find time to include some written statement regarding how risk transfers from the customer to the seller in the event of a purchase. This can significantly reduce consumer concerns and incorporate efforts to merchant fraud protection.

2)     Be transparent about any fees: Another way to reduce chargeback services headaches is by being transparent and upfront with all fees associated with the product or service in question. If consumers know what costs they will incur upfront, they are less likely to claim that something was not clear when it comes time to file their dispute. While you may think this type of information would be best placed after purchase, many online consumers will search for such terms and conditions before committing to adding an item to your shopping cart. This means you need to make it readily available.

3)     Explain all terms and conditions: This is one of the essential consumer-facing tips you can utilize to reduce your number of chargebacks and recover losses in general. Consumers that understand what they are buying and why they are buying it will be less likely to balk at a purchase when something goes wrong. If you don’t feel comfortable having your employees explain everything about your product or service, consider setting up a hotline where customers can get any question answered quickly and easily without involving anyone else in the transaction process.

4)     Let customers know when their payment is disputed: When transactions go south, expect businesses to do everything in their power to get them back on the right track. The same can be said about customers who use PayPal, Visa, or other forms of payment that allow disputed transactions to take place. If there is any perceived flaw in your practice, your customers will likely let you know within minutes of receiving their item if they are not happy with what they bought.

5)     Provide an easy way for consumers to request refunds: even when a business has taken all the steps listed above, sometimes things go wrong, and unhappy consumers need a way out. To avoid running into problems down the line when this happens, make sure your site includes an easy-to-find request form where consumers can ask for a refund without requiring their credit card information or going through a long process.

One of the best ways to avoid chargebacks is to have a clear policy on your website. If consumers know how, when, and why they will be charged, the chances of filing a chargeback go way down. Businesses should get in touch with their customers immediately if there has been an issue with their order. This way, they will find a lasting solution instead of resorting to a chargeback.