How to Prevent Chargebacks?

While chargebacks can’t be completely prevented, you can take steps to minimise the risk of them occurring.

One of the most effective tools is using 3D Secure (3DS). This adds an additional layer of authentication during online payments, making it much harder for a cardholder to later claim that the transaction was unauthorised.

Other best practices for reducing chargebacks include:

1. Clear Descriptions: Ensure product descriptions and service terms are accurate and transparent to avoid misunderstandings.
2. Customer Service: Respond promptly to inquiries and resolve issues quickly. Satisfied customers are less likely to initiate chargebacks.
3. Secure Payments: Use reputable payment systems to reduce fraud risk.
4. Authentication: Implement strong methods like two-factor authentication to verify transactions.
5. Delivery Confirmation: Use shipment tracking and require delivery signatures for physical goods.
6. Return Policies: Clearly state your return and refund policies on your website and at checkout.
7. Record Keeping: Maintain detailed records of transactions and communications to support disputes.
8. Billing Descriptors: Ensure your business name on statements is recognisable to prevent confusion.
9. Honour Refunds: Process valid refund requests promptly to avoid chargebacks.
10. Communication: Keep customers informed about their orders, delays, and changes to prevent misunderstandings.