Card issuers today have chargeback policies which in most cases favour card holders. If your business is receiving payment from customers via plastic cards including credit and debit cards, it is essential that you plot means of avoiding chargeback resulting from the activities of credit card fraudsters. Many credit card thieves are away that credit card issuers have chargeback policies which favor card users. Thus, many of them have devised means of taking advantage of these policies in cheating the merchant. As it stands, it is not a good strategy not to receive payment via credit cards because consumers find them more comfortably.
Apart from unauthorized debit, there are a number of reasons why cardholders can file for chargeback. A disgruntle customer can make a chargeback claim if for example the merchant make false marketing promise or misleading claims. Long and unnecessary delay in delivery of items is also enough reason for a customer to file for chargeback. If a customer has already received the products before filing for chargeback, there is nothing a merchant can do except to accept their fate and bear the loss if the judgment was in the favour of the client.
Chargeback scammers aim at purchasing items without making any payment for them. If they are successful with their tricks, your business will lose not just the products but also the purchase price of the products while the fraudsters will go home with the goods and their purchase price. According to statistic such illegal and deceitful ways of purchasing items is on the increase on daily basis. It calls for caution on the part of the merchants. Thus, as a business, you should know how to avoid and fight chargeback. The basic starting point is to know that chargeback fraud is real, how the crime is committed and then work out means of avoiding it. If you have an effective plan of fighting a chargeback, your business is about 90% protected.
Verification of the card being used for transaction before validating transaction
One of the effective means of fighting and avoiding chargeback is to verify the card used by customers in making payment before validating transactions. A lot of credit card thieves steal other people’s card details and make purchase with them. When the real owners of the card discover that an unauthorized payment was made with their cards, they will simply contact the credit card issuer and file for chargeback. Your business will pay back and lose their product to a thief. So, to ensure that this does not happen, you have to take time to verify customers’ cards before authorizing their transaction.
There are various ways of verifying the legitimacy of card used for transactions. Some merchants use BIN checker service. Binchecker services will help you to decode some important information about a card such as the issuer, the brand, address of the issuers and others. If you match these pieces of information with what is provided by the customers and there is discrepancy, it is an indication that there is something wrong. There other card verification technologies used by some businesses. But it is more effective if you combine technologies.