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eCommerce

Why Your Business Needs an Optimized Checkout Process

When it comes to online shopping and retailing websites, customers want a streamlined, hassle-free experience. What this means is that they want the least amount of steps possible from opening the website to checking out their orders. If you are a webpage owner, it might be the right time to have a look at whether or not your customers are getting the best shopping experience. 

Studies have found that badly optimized websites, and eCommerce websites that have too many steps to fulfill have seen an increase in cart abandonment. This is because people want a hassle-free experience, which you should be providing to get the best conversion rates. 

Every eCommerce checkout process includes the same basic elements for a successful transaction, which are the following: personal details, delivery options, and payment information. While this is mostly successful, not all buyers pull through with their purchases. Some customers could have had doubts about the integrity of the merchant, or because the checkout process was too complicated and they gave up. These are the reasons why you need to optimize your checkout procedure for online retailing, which will be discussed below:

What Is Checkout Optimization?

In eCommerce, checkout optimization means keeping customers excited about their purchase even while filling out the boring albeit necessary forms, making sure nothing stops completion. The trick to the whole process is layouts and perhaps even using a payment page builder. 

Streamlining The Layout Of Your Checkout Area

The first tip is to create a one-page checkout page. While a trend in eCommerce is to utilize multi-page checkouts (e.g. page 1 has personal information, page 2 will be shipping methods, etc.), studies found that they aren’t all that great. If customers have any inclination to exit, whether it stems from tiredness, anxieties, feeling rushed, this is when customers will take the way out. 

By utilizing apps like Stripe checkout, you can cut down the steps needed per page by making everything into one whole checkout form that looks secure and clean. 

The second tip is to limit options for things like shipping to two of the most sought after–cheap or fast. Additionally, don’t require customers to create an account to purchase a product, and guide them through checkout making the choices obvious and providing easy instructions. 

Another tip is to remember that not all customers take the time to read everything on your website, so make sure that the purchase buttons stand out to ensure the correct ones are clicked and redirected to the checkout page. Also, note that after the purchase is completed customers know when they can exit the page or if there are any next steps they have to take. If not, redirect them to a thank you page and email them the necessary tracking information and numbers for contact. 

Reduce Checkout Page Distractions

While your site may look awesome, you do not need to make the payment page look just as awesome. By using a payment page builder, you can add only the necessary tools and information needed for the customer to complete their order. This is because the chances are that they are already persuaded that your product is good once they reach the checkout page. 

Some tips to consider when building the checkout page are to hide navigation options that lead them off the page accidentally, remove ads and banners, and remove visual clutter around it. Your end goal is to get them to buy, so make sure that they are staying on task towards paying for your product and finally buying it. 

Conclusion

Using apps like Stripe checkout are good ways to streamline your eCommerce checkout process because of its modularity and versatile design. Remember that customers are often impatient and easily irritable, especially when it comes to bad web design and shady websites. Make your website stand out not just with good web design, but with trouble-free and easier ways of checking out to  anyone who aims to purchase your products. 

If you are looking for the best payment page builder integrated with Stripe checkout, Payment Page can help you with growing your business through the final parts of a sale. With the ability to accept payments from all over the world with different payment methods, your eCommerce website will easily grow into an international retailing powerhouse with our help. Contact us today if you are an entrepreneur or small enterprise owner looking for ways to streamline your sales processes. We will be happy to help.

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eCommerce

Payment Processing Mistakes You Might be Making and How to Avoid Them

How you design your payment page can dictate whether or not you achieve a conversion. Though your payment options may be plentiful, an inefficient processing system may result in unnecessary expenditures or unprotected data. If you’re making any of the following processing mistakes, it may be time to reevaluate your partnership with your provider or outsource solutions if you haven’t already incorporated them.

1. You Lack Payment Options 

Though a fairly elementary concept, it can be easy to settle for a basic credit card and cash on delivery payment option for your consumers. After all, you want to start  selling as soon as possible. However, if you’re targeting clients who prefer to make purchases using mobile wallets, for example, foregoing the option entirely can hurt your prospects in the long run. 

2. Forgetting to Ask Important Questions 

Though some queries on your laundry list of questions may seem trivial, it’s important that you ask any potential credit card provider every single one. Glossing over something you feel is unimportant can, in fact, cause trouble down the lane. The relationship you’ll have with your provider is a long-term one, thus encouraging transparency will help them better meet your needs. 

3. Completely Overlooking Chargebacks

Every eCommerce business knows the horrors of a chargeback. Whether a customer has filed a fraud claim due to a forgotten purchase or failed to recognize a purchase made by another family member, most chargebacks are caused by innocuous oversights. However, others may be driven by more malicious reasons such as dissatisfaction with your product or feeling misled. 

To avoid unnecessary chargebacks, ensure that the overall shopping experience you provide is intuitive, streamlined, and descriptive. Don’t make any promises your product can’t surely deliver and avoid vague product descriptions. Ensure that your payment form is user-friendly that your terms and conditions, along with your shipping and returns policies, are clearly communicated and easy to access. 

4. Overpaying Processing Providers 

If there’s one thing business owners adhere to most, it’s that every dollar counts. If you’re spending far more than you should on credit card processing for a fairly mediocre job, you’ll need to zero in on discrepancies you may not have noticed in the first place. As a general rule, doing your research on a credit card provider can help you avoid unmerited charges. Consider whether a provider is capable of meeting your needs at competitive rates without hidden charges. 

Make sure to review your statements every month and consider whether or not you’re spending far more than you can account for. Similarly, if you have a little bit of financial wiggle room and aren’t satisfied with the service you’re getting, you might consider a more capable provider. 

Conclusion

Accepting payments isn’t as simple as opening a bank account for your business. You’ll need to develop an understanding of various payment methods and how best to process these. A responsible payment processor will not only take on the job for you but will also help you make more informed decisions regarding your payment schemes. 

By signing up with Payment Page, you can fully customize your payment forms using a versatile payment page builder. We can help you accommodate all types of payment methods and create beautiful designs that get you converting in no time.

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eCommerce

Tips for Protecting Your Business From Remote Payments Fraud

As business owners step away from in-store purchases and focus primarily on online options during the pandemic, it’s important to review the implications of remote payment fraud. Especially for businesses that don’t primarily function as an eCommerce enterprise, remote payment options can appear intimidating. As online alternatives continue to keep businesses afloat, protecting your operations from fraud is a must. Here’s how you can get started. 

1. Arm Your Payment Page With the Address Verification System (AVS)

A hosted payment page removes the security provided by a physical credit card, ID, and being able to interface with a customer in person. Thus, some remote credit card terminals will charge higher rates on transactions that require additional information regarding a customer’s billing address, zip code, and contact information. 

These additional requests manifest as AVS prompts and can result in fraud if they are dismissed. Responding to AVS prompts can take time away from your hands but can help reduce the risks of fraud and keep your rates low. 

2. Sell Only to Known Customers

New prospects are what make a business flourish but if you aren’t well-versed in accepting remote payments, can also lead to potential fraud. This is particularly true when it comes to accepting subscriptions, as customers sometimes receive products before their credit card is charged.

Incorporating an anti-fraud system takes time, so prioritizing known and trustworthy customers, meanwhile, can protect your business from losing money. Nowadays, lifelong customers tend to patronize their favorite businesses on a regular basis, which you can easily take advantage of while you consider your options. 

3. Trust Your Gut

While it may seem counterintuitive, trusting your instincts when it comes to evaluating a sale that seems too good to be true can keep fraudulent transactions at bay. Perhaps you’ve come across a customer whose billing and shipping addresses don’t match or whose credit card information simply won’t go through. If so, you may be better off foregoing the sale or even choosing to temporarily suspend international or out-of-state orders. 

4. Create an Electronic Defense System for Sensitive Data

Not only does a robust security system protect your customers’ data—but it also protects your business. By adhering to PCI security standards and assessing any third-party provider’s cybersecurity risk, you can build an impenetrable payment system that allows clients to trust you and you to trust your clients. When outsourcing a payment processor, review their disaster recovery strategy and consider whether their protocols align with yours. 

Conclusion

No business owner wants to lose a sale but while some of these practices may seem unnecessary or over-the-top, they’re also useful in preventing scams and chargebacks. Over time, you may choose to relax some of these measures but should prioritize AVS for over-the-phone transactions. 

With Payments Page, you can incorporate branded elements into your payment portals such as unique payment buttons and a stunning design that reflects your business. Better yet, you can ensure that your transactions are fully protected and that your payment gateway displays comprehensive business information to clients. Ready to accept payments? Sign up today with a 30% discount!

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eCommerce

Recurring Revenue: What Is It and What Are Its Benefits

Online businesses benefit from having recurring revenue. This business model centers on a product or service that people purchase regularly. An example of this is subscription-based services that customers pay for on a monthly, semi-annually, or annual basis. 

Recurring payments allow a business to compute more accurately the return on their investments, and it helps reduce the time they spend on related tasks like marketing to new audiences. Here are some things you can expect if you adopt this model for your business.

Steady and scalable monthly income

It is easier to sell to existing customers than finding new people to opt into your service or product. People who are already making monthly payments are likely to keep paying. Furthermore, if you have a recurring revenue business, you do not need to trade your time directly for money. You can grow your business faster since you have a cushion for your efforts.

Increased lifetime value for customers

Recurring revenue lets you increase the lifetime value for your customers. If they pay for something regularly, it is an incentive for you to keep improving your product and adding bonuses that they would find engaging. It means more purchases, which leads to a higher ROI on the money you spend. When you increase your number of subscriptions, you can focus on customer acquisition and retention and make a bigger impact.

Time for your business to strategize better

Companies built around one-time purchases have to market and promote their products every month. With recurring payments, you can keep selling to the same group of people and not worry as much about being unable to meet your sales goals. This business model also allows you to optimize your business and make it more suitable for recurring revenue. You can start by looking out for these three things.

1. Know why you want subscription-based services

Do you want more revenue, more customers, or to reach another goal? Identify your goals at the start to lock in the best pricing scheme for your product. If you are tying your revenue to a pricing strategy, you need to be strategic—you cannot change your fee schedules on a whim, or you will alienate customers. Being able to justify your pricing model will help you find the best price points, differentiate the tiers, and bring in appropriate bonuses or add-ons.

2. Concentrate on customer satisfaction 

Your business relies on how happy your customers are about your products. When people sign up for subscriptions, they need to have as great an experience as possible. If you focus on their journey, you will surely see an improvement in your acquisition numbers. Furthermore, a great onboarding process will lead to people being more willing to pay for your products.

3. Make it easy for them to make payments

There are plenty of complex processes involved in billing, and you have to know what these are for you to succeed in implementing this business model. One way to make things easy for you is by teaming up with a hosted payment page provider, or a company that creates plugins for websites. This way, you can build on structures that other companies use, taking one thing out of your to-do list.

Conclusion

This is the best time to start a recurring revenue business. Membership websites and SaaS providers are all over the internet—people are used to the idea of paying a monthly fee. What you need to do is concentrate on delivering a product or service that they love.

Make the collection of recurring payments a breeze by using our services at Payment Page. After you create a hosted payment page with us, you can concentrate on giving customers the best product or service! Get in touch with us today for more details.

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eCommerce

What Are the Benefits of Having Diverse Payment Choices?

The age of the internet has taken the world by storm. And as the world continues to progress, it continues to make ripples and trickle-down today, especially in the world of eCommerce. Small businesses, merchants, and huge companies from all over the world make use of various payment methods, all of which have been made possible thanks to digitalization. 

Cash has now become a rather unnecessary form of payment method—in the world of online shopping, credit cards, and digital wallets, such as PayPal and Apple Wallet, reign supreme. While the blueprint for business success still features marketing and traditional aspects, businesses all over the world are now urged to accept payments, regardless of location. 

By offering diverse payment options, businesses can extend their horizons, now reaching customers that have otherwise been inaccessible in the past.  

If you wish to learn more about the importance of accepting alternate forms of payment, here are some benefits you must take into consideration:

1 – It reduces the chances of cart abandonment

Shopping cart abandonment rates are high across the globe, and it’s an occurrence that has been hurting most businesses. If you’re one of the few suffering from abandoned carts, something as simple as allowing your customers the freedom to choose payment methods may be the answer. 

Experts postulate that most customers end up abandoning their carts due to the lack of payment method. In a world where customer behaviors and patterns dictate the name of the game, it’s important to always put your customers first—especially when it comes to payments. When you keep customers happy, they’ll keep coming back.

2 – It creates a better image

By offering diverse payment choices, you present yourself as a forward-thinking business. It raises your credibility and reputation, subtly letting your customers know that you’re here to stay—and therefore, worth knowing and engaging with. 

Staying on top of the digital game also lets people know that you take your work seriously, always ready to help a customer in need. It also helps you attract customers, especially the technically-savvy market pools. 

3 – It serves as a competitive advantage for businesses

Given the rapidly growing world of eCommerce and increasing competition, online businesses now compete for customers. Most online stores compete in terms of deals and prices, but payment options have now become prime competition grounds—the more convenient your payment methods are, the more attractive your brand becomes. 

Stripe checkouts, for instance, are the preferred method for many, which allows users to use cards more securely and conveniently. By offering your customers more options for payment, you not only address the issues of cart abandonment—you also create a better image for your brand, one that makes it even more attractive. 

Your Hosted Payment Page—Making Businesses For You

The payment industry has grown tremendously—from checks and cash payments, people now regard digital transactions heavily, especially since these methods make convenience and comfort possible. With online shopping rampant these days, it’s important now more than ever to heed consumer wants and needs, ever ready to exceed expectations. 

If you’re on the hunt for more payment methods to offer, we’re ready to assist! We make it easy for businesses to accept payments, especially through our special WordPress plugin that allows you to create a hosted payment page. Integrated with Stripe, we guarantee you safe and reliable options, one that will enable you to reach new heights. Reach out to us today to learn more!

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eCommerce

A Guide to Setting up an Online Payment Form Using an Outsourced Solution

North America spends over $25 billion in check processing costs each year. Every single check a company writes costs an additional $10. Switching to electronic payments helps reduce the paper, printing, mailing, and processing costs for these checks.

Making the shift, though, is easier said than done. It can be challenging to convert in-house processing systems, and not all vendors and contractors are willing to let go of physical check payments. A happy medium would be to set up an online payment processing option.

The benefits of having an online payment form

Online payment helps you save money. Employees who process checks can work on other tasks. What’s more, outsourcing means doing away with having to update payment processing systems onsite.

Moreover, securing financial data requires stringent protocols, and it makes your financial department responsible for managing incredible amounts of risk. Outsourcing takes the worry for cyber theft off your hands and gives it to a team specializing in it.

In addition to theft, check fraud is another thing that sellers and retailers should monitor. This type of fraud can come from inside the company or from people posing as vendors. An adequately certified external team will have the resources to prevent fraud.

What options are available for my company?

Online modes of payment have evolved beyond bank transfers and credit card purchases. Here are some of the most common payment methods you can access online in 2020.

Via debit and credit cards

This method is the most basic way you can accept payments through the internet. You should choose between enabling a dedicated merchant account or using an intermediary holding account, and these have different business processes and funding times. 

A dedicated merchant account is like an internet-based account expressly for receiving payments for your online offerings. Meanwhile, an intermediary account acts as a clearinghouse for cash, mainly from transactions involving foreign currency.

Electronic checks through ACH Processing

You could also include payments through electronic checks, which are direct debits of bank accounts. With ACH or automated clearing house processing, the customer inputs their information on an online check interface. After this, the software processes the payment and sends it through the ACH network for clearing.

Payments through mobile apps

If you have a combination of physical and online stores, you can set up a mobile app system that allows you to receive payments by dipping a chip card, swiping a credit card, or keying in a number. Paying through mobile apps is convenient for many people, since they do not need to bother with physical notes, coins, and sometimes even cards.

Through online payment gateways

If you have an e-commerce store, adding a hosted payment page allows customers to pay directly on your website. You can even have returning browsers create accounts. It lets them save their delivery and payment information and speed through billing and ordering.

With online payment forms, you can offer various methods like credit, debit, or e-check. This method also integrates well with your social media marketing strategy, since you can link your page through email newsletters or social posts.

Using click-to-pay invoicing and recurring billing

Email invoicing allows people to pay bills without leaving their inbox. Instead of asking them to open your app or visit your website, you can send the invoice to your customers through e-mail and give them a receipt right after completing the transaction.

You can pair this with recurring billing, a popular way for customers to settle monthly dues for subscriptions. This is convenient for both the customer and the vendor; they do not forget to pay their bill, and you get your payments on time.

Conclusion

More and more payment options for your business are coming out online. While you should offer more than one payment method, you should not provide all of the options discussed. Study your core audience and learn what they use in their everyday life. Responding with two or three tailored solutions is better than offering five ill-fitting ones.

With Payment Page, you can customize your payment solutions for your audience. Our WordPress plugin allows you to integrate a Stripe checkout or other payment gateways into your website. Join us today or contact us for more information!

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eCommerce

How Does Multi-Currency Payment Processing Work?

Selling your products or services outside your own country helps create more opportunities for your business. However, global expansion means accounting for multiple currencies and securing payment processing solutions that accommodate these.

Find the best payment processing company

The first thing you need to open yourself to the international market is a multi-currency payment processor. This type of provider allows you to accept payments from other countries made through credit cards. This type of processor will display prices in the customer’s local currency, but their payouts will be in your own currency.

Payment processors have a list of currencies they support, as well as business models for which they can process payments. Check your provider’s website for this information and make sure you are compliant before you start the application process.

Check if they support the right currencies

Before you sign a contract with a processor, check if the contract stipulates all the currencies in which you plan to transact. You can also clarify what your payment processor uses as settlement currencies. This is to ensure that the funds that will register in your business’ bank account are the ones that reflect your desired currency.

Furthermore, clarify if there are administrative or transfer fees that you should pay for each transaction. If you enlist the services of a multi-currency provider, you will likely incur these additional fees. When a merchant accepts payments in a local currency, there is usually no extra charge. However, if it is in a foreign currency, there is usually a one percent fee for transferring. 

Ensure support for multiple languages

The checkout is arguably the most important page of the conversion process. The way your page is designed determines how likely people would be to follow through with a purchase. A checkout page should be free from friction—one way to ensure that is by translating it into various languages. 

Make sure that your hosted payment page offers translations for the commands and functions. Find a provider that automatically does this based on the location of the customer; this will ensure that you keep frustrations to a minimum.

Use local currencies for prices

Another way you can minimize friction is by accepting payments and displaying prices in local currency. This is convenient for your customers and minimizes chargebacks. When you list items, you should allow your customers to pay in the local currency. This means pounds for UK-based customers, dollars for American ones, and so on.

People always check the amount on the price tag, but they do not always look at the currency. As a result, they might fix a price in their head while they are paying for the item, and may get surprised when their bank statements do not reflect this, which might result in a chargeback. Assume that people do not convert when looking up your products and do this for them.

Conclusion

Offering various payment options can help you improve your conversion rate and boost your sales. However, selling in foreign markets means adapting to the payment methods that locals use. Here are the first things to remember when setting up multi-currency systems.

Set up a frictionless payment system with Payment Page. We help small and medium business owners create a hosted payment page for their online business, and start accepting online payments easily. Get in touch with us today for more information!

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Everything You Need to Know About Transaction Fees

As a business owner, accepting the cost of payment processing fees is akin to that of ditching a bad habit. Losing $50 off a $1,000 sale may feel like a blow, yet it is the necessary evil of doing business. As fewer shoppers prefer cash payments over the versatility of a credit card, you’ll have to come to terms with the exorbitant fees attached. Here’s everything you need to know. 

Transaction Fees Will Vary

If you’re at a loss for why a $1,000 sale may set you back $40 with one supplier and $50 with another, know that not every payment processing company will adhere to the same fee structure. For instance, PayPal will charge higher fees than other payment processors. Fortunately, business owners have total freedom to shop for a diverse range of fee structures. 

You Can Negotiate Fees

Not satisfied with your current fees? You’re at complete liberty to negotiate them with your processor. The more you rely on a principal processor, the more room you have to discuss a drop in rates and fees. 

Hardware Doesn’t Come Cheap

To process payments, most sellers will use a terminal. Hardware will almost always come with a hefty price tag and long-term contract. However, to find a solution amid today’s primarily digital landscape is as easy as using e-cash, digital wallets, or cryptocurrency instead. 

Different Types of Processing Come With Different Fees

For a hosted payment form to thrive, it must accept various methods of payment. That in mind, one bank may charge higher fees than another. A single transaction might also charge additional costs, such as terminal fees, annual fees, gateway fees, non-compliance fees, and the like. Don’t settle for a low flat rate—you never know what other charges you might incur! 

More People Are Involved Than You Think

Payment processing doesn’t just involve you and your provider. Credit card providers, issuing banks, and processors also play the game. To process business transactions, you’ll need a merchant account and payment gateway. Yes, that’s at least five different entities processing a single transaction!

Payment Processing is Changing

Contrary to where it used to be, the payment industry is continually evolving. Nowadays, you’ll have more than your fair share of processors to select from and various Stripe checkout methods such as smartphone apps or digital currencies. 

Are you catering mostly to Bitcoin users? No problem—there’s undoubtedly a gateway for it. Not to mention, online and mobile point of sale systems make accepting payments more accessible than ever before. 

As the payment industry undergoes rapid change, there’s no denying an inevitable shift in fees and rates as well. 

Conclusion

Unfortunately, there’s no sneaking by payment transaction fees when you run an eCommerce business. The good news is that there are a plethora of options that may best suit your business model. The more thoroughly you learn to navigate a myriad of portals and gateways, the more the fees will pay off in the long run. 

Coming soon, you can launch your eCommerce website with Payment Page’s intuitive payment page builder! Along with the ability to accept various payments, you can supplement your form with a stunning design that gets customers checking out without a second thought. 

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How Your Business Can Benefit From Subscription Pricing

If you’re a fan of Internet streaming, you’re most likely already subscribed to Netflix or Spotify. As subscription-based services grow in popularity, more businesses incorporate recurring billing models to sustain growth, achieve higher revenues, and customer lifetime values (CLVs). If your company hasn’t yet considered the upsides of subscriptions, here are the top advantages of subscription-based pricing. 

1. It Attracts More Customers

The pay-once, use-forever model is no longer as lucrative as it once was. Ask any customer, and they’d likely rather pay $25 monthly than $500 upfront for the same product. Higher prices are psychological barriers to entry for your products. 

While consumers might pay a more considerable amount in the long run, they get immediate access to your services without worrying about the next payment for 30 days. Lower price points also benefit businesses in that they can fly under budget threshold radars, increasing the growth of monthly recurring revenue (MRR)

2. It Provides Predictable Revenue

With a pay-once model, a poorly performing month can set you back tremendously, forcing you to recover investments by hunting for new customers. On the other hand, subscription-based business models allow decision-makers to predict monthly revenues more accurately. 

Foreseeable earnings ensure that you aren’t ordering more inventory than you need at any given time. Plus, billing automation can bridge gaps between billing cycles. 

3. It Increases Return on Acquisition Costs

Depending on your marketing strategy and conversion route, customer acquisition costs (CAC) will remain mostly similar to one-time payment schemes. However, CLV rises by reducing churn rates through positive ongoing client relationships. 

Instead of actively seeking new clients beyond what your resources can handle, you can leverage mounting assets for retention and customer management. 

4. It Helps You Earn More Through Cross-Selling

Having continuous contact with your client base opens up opportunities to market additional and complimentary services. Because customers have already engaged in a prior relationship with your business, they are more likely to be receptive to value-adding products. Allow customers to upgrade seamlessly through tiered or volume pricing. 

5. It Offers Proof of Concept

One-time payment systems make it challenging to offer trial periods or taster sessions. By adopting subscription-based methods, you can more effectively provide free versions of your product in the hopes of an upgrade to the full package. 

Even when a customer doesn’t sign up immediately after expiration, you’ll already have their contact information in your—virtual—back pocket. You can convince them to sign up later. 

Because your subscription product is always up-to-date, you reduce time-to-value for updates and new features—even during the trial period. 

Conclusion

For consumers on a budget, recurring payments are a godsend. Subscription pricing allows businesses to offer greater-value products that improve over time, emphasizing nurturing longer customer relationships. An apparent win-win circumstance for both business and consumer, scaling your business on a subscription-based model, can happen as quickly as you’d anticipate. 

To begin accepting subscription payments, link up with our team at Payment Page! Upon launch, you can equip your beautifully designed payment portal with attractive payment buttons for subscriptions your clients can’t wait to get their hands on! 

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Chargebacks: What Are They and How Can My Business Handle Them?

Your business is running smoothly, sending out product after product. You finally begin reaping the benefits of years of hard work. All is well—until you receive yet another barrier to success: a chargeback. Chargebacks are one of the most detrimental occurrences to any business, and as an entrepreneur, you need to be wary about this especially in online platforms. 

When you allow chargebacks to get out of control, your business suffers huge losses not just in profit, but reputation. If you wish to operate in the most profitable way possible, you need to ensure that your chargeback history remains untarnished. 

To learn more about chargebacks and how to protect your business from their damaging effects, here is a quick guide to follow:

What are chargebacks?

Chargebacks are basically transactions that are disputed by the customers. Customers can dispute an item on their transaction reports or credit cards. When an item is successfully disputed, the seller can reverse the transaction and return the customer’s money.

Chargebacks are designed to protect customers from fraudulent transactions, but chargebacks can also be subject to abuse. Some customers relentlessly make use of chargebacks and cause losses to the company, which can especially hurt small businesses. Other times, clerical errors can also lead to chargebacks. These errors may seem inevitable, but there are ways for businesses to reduce the likelihood of having to deal with chargebacks.

How can I protect my business from chargebacks?

Given the detrimental costs associated with chargebacks, you need to ensure that your business remains protected from untoward chargebacks. Here’s what you can do:

1 – Ensure that your customer service remains topnotch

Your customers serve as your business’s source of life, so ensuring that they are satisfied with every aspect of your business is paramount to your survival. That said, ensure that they always have access to quality customer service. This includes making sure that return policies are clear during the transaction. Bear in mind that customers raising disputes are likely looking for solutions—most are prompted to initiate chargebacks due to unsatisfactory services. 

2 – Enlist the help of an Address Verification Service (AVS)

Address Verification Services (AVS) can work to reduce fraudulent transactions. An AVS can identify suspicious transactions by checking for discrepancies in a customer’s name and address used in the transaction. It compares the customer’s details with the given data at the credit card company. 

Should the AVS detect any discrepancy, it could be a sign for you to proceed with caution and ask for further information, or perhaps decline the transaction. If the information matches, however, it is likely that the transaction is valid. 

3 – Always ask for CVV/CVC codes

Chargebacks are heavily shrouded in fraud, so to ensure that your business does not fall victim to such practices, require your customers to input CVV/CVC codes. These pertain to the 3 digital security codes on the backside of credit cards, which is particularly important for online shopping. By doing so, you ensure that the person using the card is indeed the owner, and not someone who has stolen the account number. 

Keeping Your Business Secure

There’s no other way to place it—chargebacks can lead to major losses. If you own a relatively young business, this could lead to dire consequences, especially if you get caught in the chaos of fraudulent sellers. That said, you need to ensure that you protect not only revenue but your reputation. Make sure to keep this guide in mind when dealing with customers and remember that chargebacks are much better off prevented. 

If you wish to build a payment system that delivers and protects, Payment Page is the place to go. We offer you a WordPress plugin that creates a hosted payment page, integrated heavily with the ever-reliable Stripe. Build and protect your business by offering better payment options—reach out today.