By Monica Eaton-Cardone, Special for USDR.
The word “chargeback” is enough to have many online merchants cowering in fear. Chargebacks, which occur when consumers dispute purchases made with their credit cards, are now a detrimental aspect of e‑commerce and the cause of imbalance in the industry (1). Limiting chargebacks is becoming an essential part of ensuring a resilient online business, and many retailers have tried a variety of methods to counteract them. Unfortunately for many merchants, some of their own processes are encouraging chargebacks, rather than 
preventing them. Chargebacks911 (www.chargebacks911.com), a company established by a former online retailer, explains how merchants are inadvertently causing more chargebacks for their online businesses.
Excessive chargebacks (www.chargebacks911.com)can result in many negative consequences for merchants, including loss of time, money and potential business. Many merchants are unknowingly employing practices that are liable to induce chargebacks, and actually encourage the problem instead of curbing it.
Chargebacks911 clarifies why the following five methods are hidden sources for increasing retailers’ chargeback rates (www.chargebacks911.com):
1. Automated answering services: Depending upon their use, this type of system can bring tremendous value to customer service. But if you are interested in curbing your chargebacks, a much better policy is to provide immediate human interaction.
2. Shipping an additional, “free” item: Shipping another bottle of the same product for “free” in hopes to improve customer loyalty often backfires because —customers may assume they are getting double-charged and initiate a chargeback.
3. “Automated” rebate offers: Some companies exercise a rebate offer to provide incentive, avoid giving refunds, or reward customer loyalty. Anytime something is advertised as “automated”, but requires the customer to complete a form, wait a long period of time, or receive a company check, you will end up with more chargebacks.
4. “No refund” policies: Instituting a “No Refund Policy” in the hope of eliminating chargebacks will only drive more customers to their bank for resolution. Even if you fight each chargeback and win 100% of the resultant cases (due to your ironclad policy), you didn’t do yourself any favors. The real harm with chargebacks is the negative statistic you cannot reverse. The best policy is to avoid them altogether.
5. Automated chat support: Generally speaking, it’s a great idea to employ 24‑hour support options for your customers, especially if you operate an Internet business. However, if your option for customer support involves automated response systems, your efforts to avoid upset customers—and curb chargebacks as a result—may end up creating more than you bargained for, because they can actually breed more frustration and drive your customers to call their banks for a resolution.
The founder of Chargebacks911, Monica Eaton-Cardone, says that because chargebacks are an inescapable facet of online sales, merchants must be proactive in limiting chargebacks in order to keep their businesses thriving.
“Merchants have to reject the popular stance of ‘ignoring’ chargebacks,” Eaton-Cardone said. “The only way to reduce chargeback cases is to maintain a position of offense and tackle them head‑on.”
Although Internet businesses can never completely eliminate chargebacks, a safeguard is available—a solutions expert can assess the risk, handle costly chargeback disputes, and resolve cases without unfavorable consequences.
Chargebacks911 provides fast and reliable solutions that not only help recoup the loss of funds as a result of increasing chargebacks, but also curb future chargebacks so that merchants can retain processing abilities.
Chargebacks911 specializes in servicing merchants, consumers and the majority of banking institutions.
Co-founder Monica Eaton-Cardone established Chargebacks911 in September, 2012 out of necessity, after many years as a merchant struggling to find a solution to chargeback issues. Chargebacks911 was developed specifically for merchants to offer immediate aid through proprietary technology, and provides the necessary function that gives merchants the freedom to focus on their core competency and optimize their in-house skill set. Chargebacks911 specializes in servicing Internet merchants, and offers both response and resolution services for chargebacks and cardholder disputes. The company works with merchant clients to help them keep their dispute rates down and retain their ability to accept credit cards. Chargebacks911 provides a unique exception to standard dispute processing for dissatisfied consumers who wish to remedy transactional disputes without the requirement of additional intermediaries or lengthy correspondence requirements. For more information, visit http://chargebacks911.com/.
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