| More than anything else, its fraud that affects online | | | | AVS is the best technological tool. AVS stands for |
| business. If your online business suffers likewise, its | | | | Address Verification System; it does not have a 100% |
| time to make a few changes! | | | | guarantee for fraud prevention but is definitely the best |
| First, lets understand why do chargebacks happen? A | | | | that is available today. AVS matches the billing |
| chargeback occurs when a cardholder disputes a | | | | address provided by the customer at the time of |
| credit card purchase, for any one or more of the | | | | purchase with that provided at the time of applying for |
| following reasons: - | | | | a credit card. Getting a match for an address and zip |
| - The item ordered by the customer was not delivered | | | | code is a good sign. However, if only one of the two |
| to him. | | | | matches, it is the merchants' discretion whether the |
| - The item delivered to him is damaged or in poor | | | | sale must be authorized or not. If there is no match, |
| condition. | | | | then it is in the best interest of the merchant to |
| - The customer feels he hasn't received what he | | | | apologize to the customer and reject the order. |
| thought he was buying, or, the customer feels he has | | | | Here is how excessive chargebacks can cause |
| been cheating into buying a product that was | | | | irreparable damage. With every chargeback, not only |
| advertised differently. | | | | does a merchant lose the actual inventory and the |
| - In case the purchase was made on a card lost or | | | | purchase price, but there are also chargeback fees |
| stolen from the card holder. | | | | assessed to the merchant each and every time. |
| - Sometimes certain customers just use chargebacks | | | | Consult your merchant account provider if you do not |
| to their advantage in order to get out of paying for a | | | | know what fees you can be hit with. That is not all. |
| product. | | | | Merchants, who have excessive chargebacks, can |
| So, if the customer is not happy and has initiated a | | | | lose their merchant account without warning. |
| chargeback, the card issuer bank will proceed with the | | | | Moreover, they could end up on the MasterCard |
| chargeback process on behalf of the card-holder. | | | | Match List, a.k.a. Terminated Merchant File, which is |
| Sometimes banks do not even inform the merchants | | | | looked at by other providers and if you show up on it, |
| about chargebacks, unless it is a clause of their | | | | this means you will not get a merchant account. You |
| agreement or contract. With the bank being under no | | | | can expect to stay on the list for 5 years too. |
| obligation to notify the merchant of the chargeback, | | | | Use caution and good judgment while accepting |
| the bottom-line of the business can get seriously | | | | orders. Do not sell to any customer who is unable to |
| affected, pretty fast! | | | | complete the verification process. Lesser the |
| Chargebacks must be avoided! And to do that, the | | | | chargebacks, better will be your Internet business and |
| authenticity and credibility of the cardholder has to be | | | | merchant account! |
| verified. To do that effectively over an online platform, | | | | |