When it comes to paying for products and services, most people don’t think twice about entering their credit card number in an online form or swiping it in a payment terminal. From big ticket purchases to everyday buys, payment cards are the de facto choice.
The problem is that this constant swiping means that consumers sometimes forget how and when they’ve used their credit cards. Frequently, this oversight is an honest mistake, but a problem for merchants occurs when customers realise they can beat the ineffective payments monitoring system and easily commit chargeback fraud.
By claiming that they don’t recognise the charge or remember making the purchase, customers often “game the system” and defraud merchants of their revenue. The best way to beat these defrauding customers at their own game is by compiling extensive purchase details that shine a light on these consumer missteps.
By following our five tips on how to eliminate chargebacks through data sharing, merchants can put an end to consumer oversight and chargeback fraud. It simply comes down to this: equip customer service teams and card-issuing banks with the information they need to prevent chargeback fraud.
- Provide Clear Merchant Details
Merchants should ensure their business name is displayed on the payment card billing statement, as it would be easily recognised by the customer. Merchants often use the name of a holding company or their business number, which only adds to consumer confusion.
Merchants should use a payment solution that includes the merchant name, address, customer service contact details, and links or access to refund/return policies in the customer’s billing information.
- Have Accessible Merchant Contact Information
Using an informative billing descriptor that includes as much detail as possible about the merchant and the purchase gives the issuer an advantage when dealing with a confused customer, or one who is attempting to commit chargeback fraud. Sharing this information to be accessed at the time of a dispute allows the issuer to be better informed on the purchase, helping to eliminate purchase confusion.
- Know Cardholder History and Details
Knowing cardholder details, including the date and time of the purchase, how often the cardholder makes purchases from this merchant, and how long the cardholder has been a client are all important data points.
Access to this information allows the issuer to ask questions that can help determine if the disputed charge is valid or should be identified as fraud.
- Understand and Identify Buyer’s Remorse
Quite often, a customer may regret making a purchase. Viewing their credit card statement is when the reality of the purchase sets in. To avoid paying for the purchase the customer will make such claims as “I don’t remember buying it”, “it doesn’t fit”, or they’ll simply say, “I regret buying it”.
By having detailed order information available at the initiation of a dispute, the issuer and the merchant can address these invalid claims and avoid the chargeback representment process.
- Easily Accessible Purchase Data
When the customer disputes a purchase, Verifi’s Order Insight immediately shares the merchant and transaction details with the issuer and cardholder through the issuer-hosted mobile app or online banking portal. When the details on the purchase are made available in near real-time to the merchant, issuer and cardholder, it’s much more difficult for a friendly fraud or chargeback fraud claim to move forward.
Cardholder and Purchase Insight Prevent Chargeback Fraud
The chargeback process is inefficient, providing little or no connection merchant and cardholder or merchant and the issuer. This results in error upon error, confusion, and ultimately a drain on resources for both merchant and issuer.
Knowledge is power. Sharing merchant and transaction information over a robust and secure solution such as Order Insight can optimise this power.