Control chargeback risk

One of the risk credit card processing involves is chargeback. Chargeback is occurred when customer is not satisfied with, does not admitted the transaction or the card has been stolen and used. Although chargeback reason varies, the situation for the chargeback can be included all different cases. All in all, the chargeback is a loss for the merchant.

In order to prevent the chargeback, merchant can take several measurements. Before the transaction get charged, the merchant can sign a contract or statement for authorization of the charge and acceptance of the product or service. The file is a proof that the transaction is requested by the card holder himself. But still the chargeback may arise later. As there are uncertain factors: 1. If merchant provided the product or service just as the file described. 2. Customer change his mind after the transaction 3. Customer maliciously charge back 4. Merchant and customer have not been able to achieve a negotiation when the customer has dispute for the transaction. 5. Fraudulent chargeback

For control the chargeback risks in merchant credit card processing, the merchant must build anti-fraud risk control system technically and manually. Use anti-fraud verification appliance set in the system to block suspicious transaction, abnormal transaction. And manually contact the customer for verification to avoid fraudulent use of the cards. Setup  professional customer service team to tack care the complaints and questions from the customer.


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