A chargeback is a process through which a customer disputes a payment for a product or service, claiming that the transaction was made by mistake or without their consent. Chargebacks are not just a delay in receiving funds for the company; they can also lead to serious legal and financial consequences. When the number of chargebacks exceeds a certain threshold, it can result in fines or even the suspension of the merchant’s account with payment systems.
Chargeback systems may be used by customers if they feel that the product does not match the description, was received damaged, or was not delivered at all. In some cases, chargebacks can occur due to fraud or other violations. The chargeback rate is an important indicator for online businesses as it reflects the level of risk and trust from both customers and payment systems.
Reducing this rate is crucial for maintaining business stability, minimizing losses, and improving the company’s reputation. Therefore, a strategy for reducing chargebacks should be part of a comprehensive risk management approach.
Avitar provides comprehensive services aimed at reducing the number of chargebacks and managing this process:
In the first stage, we gather information about your transactions and analyze the reasons that led to chargebacks. We determine whether there are systemic issues or isolated cases.
Based on the analysis, we form a strategy for reducing chargebacks. This may include adjusting payment processing policies, improving product and service descriptions, and making changes in customer interaction processes.
We assist in implementing new policies and procedures for your business. These could include technical changes in the order processing system or improving customer communication, enhancing guarantees, and return policies.
After the strategy is implemented, we continue monitoring the effectiveness of the changes and provide regular reports on the reduction of chargeback rates. If necessary, we adjust the strategy based on new data.
If a chargeback has already occurred, we help resolve the issue through consultations with payment systems, document preparation, and legal protection.
Avitar is chosen for the following advantages:
We carefully analyze each case to identify the causes of chargebacks and offer personalized solutions for your business.
From cause analysis to strategy development, implementation of changes, and ongoing support — we cover all stages of managing chargebacks.
We have experience working with all major payment systems, allowing us to quickly respond to requirements and adjust strategies as needed.
We provide legal support in case of disputes, helping to minimize your losses and protect your business’s reputation.
By reducing chargebacks, you can improve your financial results and ensure business stability.
Case: Online Electronics Store
Problem: An online electronics store faced a high chargeback rate due to delivery issues and incorrect product descriptions. This led to significant financial losses and the risk of account suspension.
Solution: We analyzed the main causes of chargebacks, optimized the return policy, and improved the product descriptions on the website. Additionally, a tracking system was implemented to reduce delivery errors.
Result: After implementing the changes, the chargeback rate decreased by 40%, and customer loyalty significantly increased, ensuring stability and boosting sales.
Contact us for consultations on reducing chargebacks and building a strategy for your business that will ensure stable growth and development!
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