Reducing Credit Card Chargebacks

Merchant's must remember it is always their burden of proof that a customer purchased 'goods and services' from their business and if a merchant cannot prove this by providing the appropriate documentation, then the credit card processor will refund that particular customer's money and charge the merchant a chargeback fee (usually around $35-50).

If you are ever unsure of a customer's purchase, the merchant has the right to ask for photo I.D. to back up the name on the credit card.

Warning: If someone places a larger then normal order in store and if you do not have a relationship with this customer then you should be checking all I.D. and making sure you cross all your "T's" and dot all your "I's".

Also, merchant's should make sure their staff are fully trained to verify signatures on credit card slips with the back of the customers credit card. If it does not match, or if there is any doubt of it matching, your staff should be trained to ask for the customer's photo I.D. for secondary verification.

Here are a few tips that will help you reduce your credit card chargebacks.

For MO/TO Orders:

1. Always verify the customer's billing address.

2. Provide a toll free number for support.

3. Clearly state your refund policy.

4. Shipping address should match the customers address.

5. Memberships should allow for cancellations.

6. Never process for someone else's business.

For Card Present Transactions:

7. Check that the signature matches the back of the credit card signature and if it does not ask for photo I.D. to verify the card ownership.