Avoid card chargebacks
Prevention is better than cure: three ways to avoid pesky card chargebacks in contact centres.
Banks and merchants can lose billions every year to fraud and chargebacks. It’s easy to see how the figures stack up: typically, the merchant who processed the original transaction has to pay between £10-£15 per chargeback and reimburse the card holder within 2-3 days. So, if the transaction was only £5 in the first place, the merchant could be £20 out of pocket for a single chargeback.
This represents a significant problem for the industry as a whole. Ultimately, it’s the consumer who bears the cost for this, since these losses eventually translate into higher prices as merchants and banks struggle to absorb these increasing costs. In fact, a 2015 report by Javelin Research indicated that the average organisation spent between 13% and 20% of their operational budget on fraud and chargeback management.
The importance of secure payments
1. Face-to-face Chip & Pin transactions
2. Online payments using 3D Secure Authentication
3. 3-digit security code commonly used for a mail order/telephone order (MOTO) transactions in the contact centre
Three ways to prevent expensive chargebacks
1. Switch to mobile and online payments using the right technology
Wherever possible, try and encourage customers to pay for your products and services digitally to mitigate the risks of security and increased charges. Then, deploy the latest automated payments solutions. These provide the highest levels of mobile and online security while creating an engaging customer experience at the same time.
It might sound obvious but make time for the basics. Taking the time and aforethought to explain to customers exactly what they should expect to see on their bank statement will go a long way to building customer confidence and loyalty.
3. Keep it clear and simple
Can customers trust you? When customers receive a bank statement, is it obvious that it is from your company and not from an unknown fraudster? Check what appears on bank statements reflects your brand and clearly states your website address and contact telephone number for customer services.
As they say, prevention is better than cure. Communicate clearly with customers, encourage them to pay online and tap into the latest digital engagement technology to nip those pesky chargebacks in the bud. Go on, what are you waiting for?