Chargebacks are quite rare if you're not engaged in any fraudulent activity. However, there are instances where you may be unlucky and a customer disputes a payment because the product has been damaged during transportation or someone paid you with a stolen credit card. Here are a few things for you to be aware of to make sure you're always in good standing and can minimise disputes and chargebacks.
A common dispute is when a customer receives a product which has been damaged during transportation. First and foremost, try to make sure there's little chance the product would be damaged by packing well and using proper transportation. In the majority of instances, the customer will reach out to you first in order to request a refund or a replacement. In this case, ask your customer to take a picture, showing the damage done to the product. If it's a quick fix you can offer to pay shipping back to fix the product, or if it's easier to replace, ask the customer if they'd like a refund or a new product.
Even if you take a financial hit by sending out two items, dealing with these instances in a professional and swift manner will defend your reputation to this customer and more broadly. They will keep coming back to you for good service/ goods and most likely refer friends. If you refuse to accommodate the customer, they can open a dispute and by documenting the damaged goods, you will, without doubt, incur a chargeback. Thus, by being open to solving the issue with the customer you have nothing to lose and everything to gain.
These instances are rare, but you sometimes have a customer who tries to get the product and their money back. This is why it's so important you ask them to send you a picture of the damaged goods. If they refuse to send a picture, chances are the product isn't damaged, and if it's not damaged they likely won't open a dispute. If they still open a dispute and refuse to show their evidence then make sure you submit all your evidence of the transaction and purchase on time and chances are you won't have to incur a chargeback.
For any jobs and services performed which have results you can document with before/after pictures, we highly recommend you and your team do this in order to combat potential disputes. You could be unlucky and having repaired a boiler one day, have someone adjusting on their own once you have left and within a week you receive a dispute because the customer is trying to get a second fix for free. This documentation will also be most helpful if a dispute were to be opened.
Whether you or a member of your team has had an off day or perhaps a time crunch which unfortunately left a job performed below the customer's expectations you'll likely hear from them. As with the example above, more often than not, the customer will reach out to you before reaching out to their bank to open a dispute. Be open to solve the issue, schedule a new time to come sort out the problem. Most costumers will be happier with this than a refund.
Be accommodating to the customer and you'll see most customers are happy and understanding.
Check your customer's ID when accepting credit- or debit cards
The last thing you want to do is accept a card payment from a customer who's using a stolen card to pay for your product or service. This will be reported as fraud and you will undoubtedly lose the dispute. Not to mention this will affect your credit record as a merchant. Too many situations like these and you may be forced to keep a rolling reserve.
Thankfully, these situations are fairly easy to avoid. On all credit and debit cards, there will be a name printed on the card. Simply check the ID of the person paying and match the name to the card. If it's a company card, just make sure to check the person's affiliation with the company name printed on the card.
If you're in any doubt of whether or not the card a customer wants you to pay with is legitimate, please call our support team and they'll be happy to help you go through checks to find the rightful owner of the card.
Use the Pay by Bank app functionality
To avoid any potential card fraud you can use the Pay by Bank app as this will open on a customer's mobile banking app linked to their bank account.