11 Ways to Reduce Small Business Chargebacks
Spotting the potential warning signs of an impending chargeback is the first step in protecting your business and your bottom line. The second is to stop those same chargebacks before they can occur.
Slow the Sale Down
One of the oldest con artist tricks in the book is to use sleight of hand to distract an unsuspecting “mark” in order to pull the wool over their eyes. Fraudulent buyers will do this in person by attempting to speed up the checkout process, talking about non-related topics or offering unnecessary commentary – anything to keep the cashier’s mind off the transaction at hand.
Educating your staff to watch for these signs and slowing the sale down can stop fraud before it happens. If your cashiers suspect anything, they should ask for photo IDs or another form of identification before proceeding with the sale.
Be Wary of Multiple Declined Cards
It’s not common for a valid credit card to be denied – no matter how much of a protest the cardholder puts up. This should be a red flag warning and immediately put your employees on heightened alert. If the customer attempts to pay with another card, your cashiers should proceed with caution by walking through every verification step your business has in place before handing over any merchandise.
Know Your Cardholders
Certain types of businesses will undoubtedly have a few “regulars” that make multiple purchases during the day. But if your staff notices individuals they don’t recognize making multiple purchases of any size on the same day, they should immediately begin to question the individual’s motives.
One of the most popular tactics that fraudsters when it comes to credit card abuse use is known as “making the rounds.” They’ll take stolen credits cards around town and make small to medium purchases at multiple stores, often circling back to the same stores they’ve already hit up multiple times. Each of these purchases will likely wind up as a chargeback on your account, so be careful when approving additional transactions.
Category: Savings and Tools