Chargeback Fee

Chargeback Fees Explained + 7 Tips for Prevention

Chargebacks are painful and expensive. Billions of dollars are lost in chargebacks by businesses every year, and in 2017, the average dollar in chargebacks cost merchants $2.40. That means for $500 in chargebacks, you could be paying up to $1,200 in fees! Now expand that number over every chargeback and multiple years in business, and it’s easy to see why this is a big issue for many businesses. Chargeback costs include: The immediate revenue of the lost sale. The possibility of forfeited merchandise. The non-refundable chargeback fee charged by your acquiring bank. Your bank charges these fees due to the administrative costs of reversing the transaction. You also risk your business reputation and ability to accept credit card payments when incurring chargebacks fees. If you rack of a high amount in a short period of time, credit card networks may temporarily block you or your bank may restrict certain financial…

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Signs of Credit Card Fraud

22 Signs of Credit Card Fraud & How to Protect Your Business From Harm

Even though you shouldn’t have to deal with it, credit card fraud is something that all business owners have to suffer from. And the bigger you get, the more you’ll have to deal with it. There are ways to reduce credit card fraud, but you’ll never be able to get rid of it completely. When fighting back against credit card fraud, your first plan should be to be able to recognize credit card red flags and have processes set in place for each. Your POS and/or online gateway should take care of most automatic flags, but it’s good to be aware of them so you can customize your responses if need be. Who does credit card fraud affect? Unfortunately, no one entirely escapes from credit card fraud, BUT there are some industries who are victimized much more frequently than other industries. If you have a business in or sell any…

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Gift Cards for Your Small Business

Gift Cards for Small Business: Why & How to Get Started

The blog below has everything you need to begin accepting and growing your business with gift cards. From choosing what type to various marketing ideas, you’ll walk away confident about how to best approach gift cards. Gift cards are useful for all businesses Gift cards are a win-win for both small businesses and customers. They provide a more thoughtful gift avenue than cash for consumers, and for businesses they help bring in new and repeat customers while fighting back against lull periods (I’m looking at you post-Christmas). Think about it. Every customer that walks into your shop or goes online searching for a gift card and doesn’t find one takes that business elsewhere and doesn’t spread the word about your business. You lose both short-term and long-term cash potential. This can really add up over time. Gift cards double as both a marketing and revenue tool simultaneously, so if you…

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Payment Reversal Explained

Payment Reversal Explained + 10 Ways to Avoid Them

If you’ve been in business longer than a month, you’ve probably experienced a payment reversal of some kind. Certain payment reversals (I’m looking at you, chargebacks), are so prevalent that business owners have to budget them into their expenses every month. The frequency of payment reversals is tied to an interesting intersection of technology, law, and product/market type. If your online store doesn’t do a good job with its descriptions, you may deal with more payment reversals. Or if your product is expensive and highly bespoke (think high-end mattresses or musical instruments), returns may be more common. Some payment reversals are just normal business. Others can be exploitations of fraudulent customers, but the burden of payment reversals is often placed on businesses. The major credit card networks (Mastercard, Visa, etc.) have more incentive to favor their customers, and it’s up to you to fight back when appropriate. The more systems…

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Chargeback Fraud: What it Is + How to Prevent It

Chargeback Fraud: What it Is + How to Prevent It

Chargebacks are often the bane of business owners existence — they’re tough to fight, expensive, and often frustrating. It’s often tough to discern between honest chargeback mistakes and actual chargeback fraud, and the burden falls on you to make the case for which transaction is which. This involves contacting both the bank and customer and providing accurate records of the transaction. Businesses have to deal with: Lost revenue Recovering or forfeiting sold products Eating transaction fees incurred during the fraud. And sometimes even more than that. And not only is it expensive to experience chargebacks, you also have to use hours of your and your employee’s time to fight them… sometimes it can feel like it isn’t even worth dealing with. Fortunately, there are ways to combat chargebacks efficiently, and with the right systems in place you can save yourself substantial amounts of money. But first, let’s define chargeback fraud:…

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