Print on Demand companies struggle with chargebacks. But they aren’t alone. With $876 billion in worldwide sales, eCommerce fraud also rises. Fraud has surged by 70% during the past two years.
A chargeback occurs when a client asks their bank or credit card issuer for a return to undo a transaction. If a customer does not recognize the transaction or cannot reach an agreement with the merchant, they will initiate refunds through their bank rather than a company.
Card-not-present transactions have a higher risk of eCommerce fraud. Therefore, these merchants deal with chargebacks more frequently and with greater difficulty.
The best way for print on demand companies to prevent chargebacks is prevention. When they do occur, companies should initiate the chargeback representment process and attempt to get them reversed.
How Can Print on Demand Companies Identify Fraud and Chargebacks?
A slight error can potentially lead to a significant financial loss, reputational damage, chargeback costs, the loss of the ability to process credit card payments, and more. The identification and prevention of eCommerce fraud must be understood by merchants.
- Keep an eye on new customers and what they do in your online business.
- Transactions with large gaps between the billing, shipping addresses, and IP should be handled with greater caution.
- Another prominent indication of credit card fraud is several transactions in a short amount of time. Before the account is canceled, the fraudster is attempting to use the whole amount on the card. Verify any orders that were placed from the same account repeatedly and quickly.
Timely identification can help you take effective action and prevent your print-on-demand business from any kind of loss or backlash!
Tips for print on demand companies to prevent chargebacks
Any business taking online payments must be familiar with the best practices for fraud and chargeback prevention.
A wide range of tools and techniques are available to help retailers stop online payment chargebacks. We’ve listed a few here for your convenience.
Use CVV and AVS
Many credit card issuers provide Address Verification Service (AVS) to enable retailers to match the provided address with the one that banks have on file.
A security code called a CVV is placed on the back of a credit card, and is very useful for avoiding card theft-related transactions. Merchants can decide whether to accept, alert, or refuse a particular transaction for possible fraud by utilizing CVV and AVS.
Use payment processing protocols
The procedures for managing card-not-present transactions vary depending on the card network. In the case of a chargeback dispute, failing to comply with them might result in the card network instantly deciding against you.
To follow the proper standards, you might be needed to gather data like the customer’s IP address, perform AVS and CVV verification, or collect proof of delivery.
Understand payment card industry standards
The Payment Card Industry (PCI) security guidelines are intended to assure security and a secure environment for all businesses that accept, process, or transmit credit card information. The PCI compliance of the payment processors used by merchants is a requirement.
These requirements aid in preventing fraud in addition to being necessary for taking credit card payments. Keep abreast with standards and pick a trustworthy third-party payment processor.
Don’t neglect customer support
Customer support for online stores is essential for preventing and detecting fraud. Online subscription businesses are particularly vulnerable to chargebacks caused by friendly fraud. Many clients neglect to renew their subscriptions before the end of their free trial.
Moreover, during the holiday or busy seasons, take into account adding more help. Or employ a human fraud prevention analyst to evaluate current security precautions and instruct customer service representatives.
Use merchant descriptiors
When a client doesn’t recognize a purchase on their credit card account and promptly reports it to their bank, it can be a typical reason for chargebacks.
Ensure that your merchant description will be easy for customers to recognize. If you operate your business under many names, then you need to check that the firm name shown on the merchant description corresponds to the name of your online storefront.
Regular security checks and site audits
Regular security audits can assist businesses in identifying holes in their defenses, such as magecart attacks, before con artists can do too much damage. For all important accounts, use strong passwords, and encrypt all conversations with clients, customers, and suppliers.
Be honest with customers
Balancing customer experience and fraud prevention is critical. It’s never useful to oversell yourself to the degree where your clients are disappointed. If you make promises you can’t keep, your customers can feel misled, and if you break their trust, they’ll probably file a chargeback with their bank.
Confusion and frustration among your consumers may be avoided by being upfront and honest about your policies.
Keep meticulous records of online orders
Keep a record of all the information you obtain throughout the shipping, delivery, and placement of online orders. This information will be crucial in proving that the transaction was valid and handled correctly if you end up challenging a chargeback.
There will always be someone wanting to use stolen credit cards, commit identity theft, or take advantage of buyer-friendly sales rules to benefit from illicit purchases.
To battle these fraudsters, it is crucial to put into practice well-thought-out procedures and tactics. The risk of fraud shouldn’t keep you from doing business online.
Sell on Etsy, earn a profit, achieve your business goals, but most importantly, be well-prepared to prevent and tackle the sort of setbacks and scams that may hinder your success.