Aristotle famously said “We are what we repeatedly do. Excellence, then, is not an act but a habit”. What can we learn from this in the world of payments, fraud, and chargebacks? Can we develop safer payments through good habits? For starters, behaviours form habits and habits can make or break your day-to-day business life, for better or worse.
Research suggests that it takes as little as 66 days (and as many as 254) for a new learned behaviour to become a habit. This applies to both good and bad habits. Interestingly, building habits is not an all-or-nothing business; you can miss a day or two or mess up on your new habit without having to reset the clock and start the process all over again.
The habits that lead to success are good habits—those that are often championed and hailed from the rooftops. And then there are bad habits, those that you are afraid to admit to and wish you could change. What sort of habits are at work in your life right now? How about your business?
Chargebacks can be a laborious process at the best of times. Add bad habits into the mix and then inefficiencies and administrative costs almost certainly become unwelcome by-products.
With this in mind, we have identified four habits that we firmly believe will help you reap benefits once integrated into your chargeback processes. Much like your morning yoga, gym session, or daily meditation, these are positive habits. Building and developing better habits with these insights is beneficial for a number of reasons, but top of the list is preventing chargebacks before they happen!
Know Your Customer
Understanding your customer is half the battle to preventing chargebacks and managing the dispute resolution process. Clear communication with your customers, from making it easier to find information on your website to simplified billing with robust transaction details, provide just about all the information a customer needs to manage any dispute resolution they may be involved in.
As you might expect, this all starts with good customer service. The more you know your customer and they know you, the more comfortable both parties will feel. Making it easier for customers to contact you with a query or concern over an order means they are typically more positive about the whole process and their purchase.
3-D Secure Protocols
3-D Secure is an authenticated payment system that was developed to improve online transaction security, and as a direct result encourages the growth of e-commerce payments. When you utilize 3-D Secure to its full capability, it recreates the high level of security of a physical environment by requesting further payment authentication from the customer.
A safe and secure online payment environment, with passwords validated by the card issuer and all other parties involved, can lead to reduced e-commerce fraud. This ensures that chargebacks are prevented before they can begin by protecting cardholders against unauthorised use. It also shifts away the fraud liability from your business by applying a chargeback protection process on qualifying transactions.
Education Through Technology
The payments landscape continues to evolve, with the rise of Card Not Present (CNP) and contactless payments, and as a direct result so does fraudulent activity. To keep pace with these changes and understand best ways to protect your business and your customers from unwanted fraud, it’s worth considering working collaboratively with technology providers to ease the burden, educate, and ultimately reduce operational costs.
Chargebacks are preventable through the use of a combination of robust transactional data, collaboration between merchants and issuers, open lines of customer communication, and working with technology that takes the strain so you don’t have to.
Stay Ahead of the Pack
Ensuring that you are using the most up to date technology and working with established merchant-issuer collaboration will allow you to remain one step ahead of your competitors.
At Verifi, our approach is to move with the needs of our clients through the enhancement of existing solutions, and developing new products and solutions to help merchants manage the ever-changing payments landscape they face on a daily basis. Find out more about how we can help you prevent chargebacks.