How to Reduce Black Friday & Christmas Chargebacks

Jennifer Blake Posted on October 26, 2020

It’s coming to that time of the year, Prime Day has just passed, and many are looking forward to Black Friday and the jewel of the shopping year: Christmas. The last quarter of the year is a great time for merchants, who wait with anticipation every year for the rise in sales.

More Sales, More Problems

Due to the pandemic, it is likely more purchases than ever are going to take place online. Because the coronavirus has had a widespread effect on jobs, and therefore incomes, there is a chance that many people won’t have as much disposable cash as usual.

The potential for increased sales makes it easier for merchants to ignore the likelihood of a significant rise in chargebacks requests. According to some sources, some businesses can experience an uptick of chargebacks to tune of 50%. However, for many companies, chargebacks are the painful truth they’d prefer not to consider. 

 

How Can Merchants Prevent Chargebacks?

  • WYSIWYG - What you see is what you get. The easiest way is to make sure it is clear precisely what you are selling. A lot of chargebacks are filed because the customer doesn’t receive what they thought they were going to. This is not always the merchant’s fault. Sometimes it is something as simple as a poor-quality photo that displays a slightly different colour. 
  • Customer feedback: Speak to customers or even former customers and ask them if anything about your product wasn’t like they thought it was going to be. 
  • Excellent Customer Service: This is the most straightforward chargeback prevention strategy. If a customer requests a refund, make sure to be prompt with your response and reasonable with your decision. A customer may charge a chargeback as a result of even a short delay. 
  • Delivery confirmation: Check that addresses are valid, a common reason for chargebacks is products being sent to incorrect addresses. Parcels should be tracked, with easy lines of communication for your customers to take if there is an issue or a holdup.

Companies like Payment Help can help you with chargeback management by allowing customers to identify unrecognised payments on their bank statements. This will go a long way to reduce the instances of ‘friendly fraud’ (i.e. accidental filing of chargebacks), which can impact your business and your bottom line even if eventually overturned.