Complete Guide To Chargeback Prevention

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Frequent chargebacks are something your business can’t afford without losses. If you want to avoid the consequences, you have to lower down or cut chargebacks for good. Luckily for you, chargeback prevention is something that can be learned even by a complete newbie. Read this article to lower down the chargeback risks for your business. 

A Few Words On Chargeback 

A chargeback is the procedure of money return started with the dispute opened by the customer. The chargeback option allows the cardholder to successfully return a transaction that was sent to you as a payment for the products you provide. It can be done with Mastercard and Visa accounts, as well as AMEX and others. 

The Process Of Chargeback 

The card owner receives a chargeback only in case of a successful dispute. This procedure can be started for multiple reasons, and in most cases, the business owner is the one who suffers. The major points of the chargeback process are: 

• Cardholders may send the letter complaining that there was no transaction or the goods they received were of low quality. They send the letter to the card issuer; 

• Card issuer notifies the business owner of the request for a chargeback. A business owner may ask for supporting documentation from the cardholder; 

• If the information is valid, the business is charged with a disputed amount of money. 

Preventing A Chargeback 

Although a chargeback is something that can’t be predicted, you still can lower down the chances. You can easily reduce the numbers, increase the quality of the services you provide, and protect yourself from fraud. 

Secure The Process 

Many customers ask for the simplicity of the ordering and paying processes. And it may sound like a great idea that attracts a bigger audience. Nevertheless, by-passing the card security by the entry of card details manually leads to the weakening of security. If you suspect that there may be fraudulent transactions that can be made via the store, don’t hand the key entry to the client. You will never prove that you were right during the dispute if there is a manual key entry procedure. 

Advanced Delivery 

Don’t trust an unknown delivery company to ship your goods. Always ask for the tracking number so that you can find out the goods, especially if they are shipped internationally. Make sure that the package is reliable and will not be damaged on the road. There are lots of chargebacks asked after the postponed delivery or damaged products. 

Check Transactions 

There are scammers and frauds online that can easily use other customers’ identities. This is why it is crucial to check all the huge, unusual, or weird requests. In the rules, you can also mention that you send refunds only to the original card the transaction came from. 

Protect Yourself From Fraud 

Download a specific app that allows you to track the suspicious behavior of your customers. You can make the ordering procedure more advanced. Ask your customers for CVV and phone confirmation, for example. Make sure you have a reliable security system that protects your business online. 


Always keep records of the transactions made in your online store. You may need receipts to prove your point. Besides, don’t forget to send receipts to the customers’ emails. 

The Best Protection 

It is easier to protect your reputation and business if you know what caused a chargeback. Before you enter the dispute, find out the reason. If the problem was caused by your negligence, learn from your mistakes and improve your business. To avoid chargebacks, you have to act quickly and smart, always keep in mind the security of your business, and never forget about records that may prove your part of the story. Never underestimate essential security against frauds.

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