Although you probably cannot avoid chargebacks completely, you can take steps to reduce or prevent them.

  • If a cardholder with a valid dispute contacts you directly, act promptly to resolve the situation. Issue a refund, as appropriate, and send a note to let the cardholder know about your decision. This will help to avoid possible chargeback and save the related costs of the chargeback.
  • If the issuer bank contacts you directly please consult with your bank regarding the response. Acquirer knows the rules and knows the best scenario on how to handle the information request to prevent the possible chargeback.
  • Always send your acquirer as much information as possible to help remedy the chargeback. With appropriate information, your bank may be able to resubmit (re-present) the item to the card issuer for payment. Timeliness is also essential as each step in a chargeback cycle has a defined time limit during which action can be taken.
  • Monitor your transactions and set rules to avoid accepting fraudulent payments.
  • If the transaction seems suspicious, try to contact the cardholder in order to be sure it is not a fraud. If you believe there is fraud don’t deliver the merchandise, void the authorisation or if the payment has been captured already, refund the transaction amount. That way you can be sure that you have protected yourself against a possible chargeback.
in Payment Management
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