Whether you have a well-established Internet business or are just considering the possibility of going online, the chances are high that you have heard a lot about chargeback and therefore we need chargeback prevention.

This is not to say that brick-and-mortar stores are unfamiliar with this risk. While most widely discussed (and feared) in the context of online shopping, it has become ubiquitous enough to be perceived as haunting. Fortunately, chargeback prevention is there to relieve your burden as a merchant.

What Is Chargeback?

What Is Chargeback

If you look at the definition of “chargeback,” you’ll probably find it very innocent. Indeed, the term is used to describe situations where funds are repaid to the customer after a transaction has been effected. The reverse payment is ordered by the client’s bank. The primary purpose of this mechanism is to give customers a sense of security and deter merchants from selling goods and/or services of inadequate quality. Finally, it might prevent credit card fraud.

With this in mind, why are chargebacks something to minimize, if not avoid altogether? Here are the key reasons:

  • High chargeback rates mean little trust on the part of banks and other financial institutions and, therefore, unfavorable terms and conditions for your business
  • Chargeback claim processing is associated with costs to be born by the merchant
  • Customers can inadvertently abuse the opportunity if they forget about a purchase they made or get confused about the delivery schedule and claim a chargeback
  • Fraudsters sometimes request chargebacks for successful purchases to get goods for free that’s why chargeback prevention is essential.

How Chargeback Prevention Work

How Chargeback Alerts Work

If you look at the market of payment security products today, you’ll probably notice that some products showcase anti-chargeback features, often referred to as chargeback prevention. The term can be defined as notifications sent to the vendor whenever a customer initiates a chargeback.

According to the basic procedure, the next step is for the customer’s financial institution, i. e. bank, to process the claim and probably order chargeback. While it is not legally possible to break the cycle and take away the lawful opportunity (remember, it was meant to ensure merchant transparency in the first place), getting notified enables the vendor to respond.

Solutions such as Ethoca enable you to become involved in the dispute before it becomes official and costly. Within this valuable window, you can offer a solution that will satisfy both you and the customer, such as a return or refund, without increasing your chargeback ratio and risking your reputation with banks, payment processors, and Visa/Mastercard. The costs of processing a claim are thus eliminated in case of success and your payment processing fees remain minimal.

An Investment in Trust and Sense of Control

The return on investment (ROI) is impressive

Chargeback prevention directly minimizes costs and prevents unfavorable treatment of your business by financial institutions. And there’s more: chargeback alerts not only save your valuable funds but also have the potential to improve customer trust dramatically. Most users (excluding fraudsters) will appreciate your involvement and determination to resolve any issues through negotiations and active participation. After all, what they want is not losses on your part but satisfaction.

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7 Subtle Ways to Give Your Business The Desired Popularity

A successful business is about convincing consumers that your product or service has value and that it needs to be purchased to obtain that value. That success in turn provides the means to keep operating, pay expenses and make a profit.

Attention and awareness are gold for a business trying to grow and penetrate a new market. However, many chalk up awareness as something that happens after one does enough marketing or advertising.

And that’s where the importance of building popularity gets lost. Instead, awareness has to be cultivated. And there are seven clear ways a business can do this in merchandise management and focused marketing:

1. Awareness should be automatic

When people hear a loud noise, an unexpected yell, a bright light or similar they react and turn towards it. What’s going on? Where did that come from? What is it? People don’t think under this condition; they automatically react. Ideally, a business wants consumers to react automatically or close to it. The awareness and following reaction should just be mechanical versus a long, thought-out process.

2. The product or service is part of the consumer’s paradigm

The trick to entering a paradigm is to get the consumer to become familiar and then accepting the regular presence of a product or service. For example, everyone is familiar with Intel and computers. Why? Because the brand has become part of the desktop paradigm.

3. Disrupt the normal conditions with a positive change

People pay attention to changes that don’t fit the norm. Where the change is negative, they steer away. However, where the change is positive, it creates an opportunity for people to become very interested. For example, a new product or service that makes a regular chore or function considerably easier is a disruption. People notice it and want to tell others.

4. Create a reward for being interested

Dopamine is the chemical in the brain that gets released when we receive a reward. And our brain wants more of it all the time. So we quickly align rewards with those things that trigger and repeatedly create more dopamine. This biological driver should not be ignored; it’s often a primal driver that gets people to want or buy something even if logically they should do something else.

5. Reputation matters

Popularity can be generated quickly by a new, immediate change or huge sensation, but it doesn’t sustain when the “newness” dies down. Instead, it’s a business reputation that sustains popularity and keeps it going. Referrals, good opinions, recommendation all build and continue to spread awareness of a reputation. That continued cycle solidifies a market and customer retention over time.

6. Curiosity killed the cat

People frequently stop to look at something interesting and new. Curiosity is one of the key aspects of humanity that makes us different animals which typically run away from the unknown, not towards it. Ignoring people’s natural habit of being curious about the new is literally leaving money on the table.

7. Keeping up with the Joneses

We seek validation from our peers. And that feeling comes in the form of acknowledgment from others when we appear to achieve a level of success or accomplishment. Products and services are one way that quick acknowledgment is achieved from peers. A business using this theme frequently sees its popularity steadily go up.

Businesses can use other methods for successful merchandise management, but the seven areas above have proven to be the ones that have consistent returns. Understanding the science behind these areas gives a business far more ammunition in sales, and it’s a lot better than just building mousetraps.

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