How can I avoid chargebacks?

Chargeback Avoidance

For both “card present” and “card not present” transactions-

For Card-Present Transactions:

  • Verify that the card number and signature on the receipt matches the number and signature on the card.
  • If you manually key in a card number, get a manual imprint of the card.
  • Check the expiration date and do not accept expired cards.
  • Return policies must be printed on the sales receipt close to the signature line.
  • Do not accept a card that looks to have been altered.
  • Obtain authorization for the full amount of the sale.
  • If a card is declined, do not continue to try to obtain an authorization.

For Card-Not-Present Transactions:

  • Confirm the customer’s card number and obtain the customer’s signature on an order form.
  • Make the warranty and return policies clear on your Web site, in e-mail and other correspondence.
  • Use security features such as AVS to verify the billing address and ZIP code, and CVV2 to verify that the consumer is in possession of the card.
  • Ship goods only to the cardholder’s billing address and obtain a signed proof of delivery from the shipper for delivered goods.
  • Include a customer service telephone number in the billing name that appears on customer’s bank statement.
  • Never charge a cardholder’s card until the goods have been shipped.
  • Pay special attention to international purchases since they have a greater risk of credit card fraud.