Employ payment processing best practices to reduce chargebacks
May 22, 2013

Nothing is worse for a merchant than a chargeback from a customer. While most transactions go smoothly, consumers who feel they were incorrectly charged for services or products may dispute the payment to their credit card provider. Visa recently launched enhanced policies for retailers that choose to accept credit card payments to ensure they are properly charged for their services or products. Most of the time, small- and medium-size enterprises can reduce chargebacks by implementing a few best practices that employees can utilize at the point of sale. 

1. Ensure cardholders sign 
Customers who reach for their plastic often forget they may be required to confirm payments with a signature. Many consumers who do sign may do so illegibility or simply put an X on the line. While merchants cannot prevent unreadable signatures, payments without a cardholder signature increase the chance of a chargeback. Visa recommends SMEs encourage employees to ask cardholders to sign at the point of sale, otherwise a no signature chargeback may occur. 

2. Avoid double-swiping 
Payment processing relies on multiple elements, such as connection with the provider and how often the equipment has already been used that day. SMEs should train all workers to avoid rushing through transactions and swiping cards many times, since doing so increases the likelihood of a technical malfunction and may result in multiple payments for one transaction.

While technological advancements have significantly reduced the risk of this occurring, not double-swiping cards continues to be a best practice for payment processing. SMEs may want to consider advising employees to take their time and request that cardholders wait to re-swipe a card until they can confirm the first swipe was not accepted. During busy times, checkout equipment, such as the payment processing device or the barcode scanner, may require a reboot. If this occurs in the middle of a transaction, employees should ensure that only one receipt is printed, which may confirm that there was a single payment rather than multiple. Otherwise SMEs may encounter a duplicate transaction chargeback.

3. Deposit receipt in a timely manner 
Visa advises SMEs to deposit sale and credit receipts within a few days of the transaction to prevent chargebacks. According to Visa, payment may be questioned for late presentment and a chargeback may occur. Failure to deposit receipts can result in sales losses and transaction cancelation. 

Nexus: G-WEBCD1