Ten Tips for Avoiding Chargebacks From Mail Order Customers

Merchants have always been concerned with undeserved chargebacks. Sometimes, a customer does not remember making a purchase, or does not recognize the name of a business on a charge card statement. Delivery problems or lost packages can also initiate a dispute of a charge on a consumer’s account. We have assembled a short list of the top ten ways mail order merchants can protect themselves form charge backs – by documenting and verifying all orders. Having records of each transaction’s details and the steps taken to validate customer orders will go a long way towards winning a dispute over a charge.

• Include card acceptance language on your invoice with space for the patient to write the account number, expiration date, and name on the card.
• Have the cardholder sign the invoice and mail it back.
• Call the authorization center for an authorization number. You will be asked for information written on the invoice, plus the amount and your merchant number. Keep the signed invoice in the customer’s file.
• Write the authorization number on the sales receipt.
• Write "Signature on File" to indicate a mail transaction.
• Send the client their "Customer Copy” with the package.
• Make sure the client knows who the billing will appear to be from with language on the sales order.
• Make sure customers have been given an accurate total, inclusive of shipping charges and applicable taxes.
• Send packages using a service that collects a signature on delivery.
• Verify addresses for shipping – make sure that you know that the address is correct. Look addresses up on online mapping services to make sure they exist.

By following these tips and retaining documentation, the risk of losing a dispute is decreased. In the case of most erroneous claims, a merchant should be able to use the stored documentation to clear things up quickly. Most claims occur within the first 90 days, so be sure to save any relevant information for at least that time. When a dispute does arise, you will be well prepared to address it.