Tired of doing the math and eating the cost of chargebacks? We had a feeling. There’s nothing that can ruin your day like a chargeback from a customer’s credit card. Invalid information, expired card or insufficient funds; these dreaded words can turn a profitable event into a time-sucking financial nightmare.
Losses are not only incurred by the loss of payment, but most banks will charge an administration fee of $25 to $100. Even with one chargeback a week, that can be a $400 monthly loss to bank fees and up to thousands of dollars lost to non-payment. Whether you are a small company or large organization, these losses can add up quickly!
Want to take a step towards eliminating chargebacks?
- Start by verifying all credit card information before accepting it as a form of payment.
- Have a strict policy on use of third party credit card authorization forms, paper or digital.
- Require the cardholder to fax a copy of their photo ID in addition to their card info.
Use an “address verification system” offered by most major credit card processors. Do not accept a card if you cannot verify the billing address.
