Six key steps to reducing chargebacks
Here are some helpful reminders that can help minimize your risk of chargebacks:
- Make sure the credit card presented is valid. Check the standard identification and security features, which can be found in the merchant section of the Visa and MasterCard websites.
- Check the customer’s signature. For face-to-face transactions, ensure the customer signs the sales draft and that the signature matches the signature on the back of the card. Never accept an unsigned card.
- Follow these procedures if you have an electronic terminal and cannot swipe the magnetic stripe card, or if you cannot insert the chip card through the terminal because of an issue with the card or terminal.
- Ensure proper authorization procedures are followed and always obtain an authorization number, when required, before processing a transaction.
- Stay on top of recurring payments. Keep a file of your signed agreements with your customers and submit your transactions on a timely basis. If you process a recurring transaction after a customer cancels or changes the arrangement, it may be charged back.
- Respond promptly to all copy requests. If TD Merchant Solutions a copy of a transaction receipt, respond by the due date specified and check that your copies are legible and clearly show the following: account number, transaction date and amount, card expiry date, your company name and location and, for in-person transactions, the customer’s signature.