In today’s world of e-commerce, few things are as annoying to businesses as chargebacks. On top of creating lost revenue, chargebacks consume valuable time and can easily damage a company’s reputation. High chargeback ratios can also lead to higher processing fees and, in some cases, prevent you from accepting credit cards altogether.

The best way to protect your business from chargebacks is to adopt a proactive approach. Here are four things that will help you avoid and control chargebacks in 2024.

1. Use Tokenization and Encryption

Tokenization and encryption should be your first line of defense against a variety of credit card disputes, including chargebacks. Implementing them will allow you to shore up your defenses, protect cardholder data, and simplify your PCI compliance processes.

As the name implies, tokenization replaces cardholder data with tokens, dramatically reducing the risk of data breaches. End-to-end encryption, meanwhile, protects that data from the point of purchase to its eventual destination. Without the right encryption key, it’s impossible for third parties to decrypt cardholder data as it’s transferred from one endpoint to another.

2. Set Accurate Expectations

Another way to avoid chargebacks is to clearly communicate to your customers what to expect after making a purchase. Advertise your products or services honestly and use real photos and videos wherever possible. Make sure the product details are completely accurate.

You should also provide estimated shipping and delivery dates before a customer completes their purchase. This allows you to base these dates on their shipping address, giving them a decent estimation of what they can expect. Very few merchants can keep up with Amazon’s lightning-quick logistics, and your customers should be aware of that.

3. Have Responsive Customer Support

When a customer encounters an issue, they may first try to file a complaint or request a refund. However, if they can’t get in contact with you, they’ll likely try to file a chargeback. The best way to get in front of this issue is to create a dedicated “Contact Us” page on your site.

When a customer reaches out, do everything you can to let them know you’re ready to help. For example, automated email responses for each support ticket can help set expectations for a response time. Make sure your support team hits these deadlines consistently. Studies show that the average response time for email support is about 12 hours.

4. Save Transaction Data

No matter what you do as a business, some chargeback requests will slip through the cracks. In these situations, it’s important to be able to verify the legitimacy of that transaction and your service. The evidence you’ll need depends on the chargeback reason and can include:

• Proof of using fraud prevention tools
• Customer transaction records
• Shipping address information
• Copy of your transaction agreement
• Copies of transactional emails
• Refund receipts

If you’ve been grappling with an uptick in chargebacks lately, you’re not alone. These disputes can be costly and time-consuming, potentially impacting your bottom line. But there’s good news: MONA is here to help. Our team of experts specializes in chargeback prevention and mitigation strategies tailored to your industry.

We offer cutting-edge tools and personalized support to help you reduce chargebacks, protect your revenue, and maintain strong customer relationships. Don’t let chargebacks derail your business growth. Reach out to MONA today, and let’s work together to safeguard your hard-earned profits. Your success is our priority, and we’re ready to tackle this challenge head-on with you.