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