Best Practices to Deal With Chargebacks

Small steps that can make a big difference!

• It is best practice to have your customer’s active agreement: a checkbox provides the easiest way for your customers to indicate their agreement to the Terms & Conditions. Easily found T&Cs help prevent future trouble.
• It is recommended that any product or service you sell that differs from the standard payment model is explained clearly in order to prevent disputes.
• If you charge customers on a recurring basis, it is critical to explain the payment schedule before the first payment and to send the customer a reminder with an option for subscription cancelation 7 days before each recurring transaction.
• If you provide a free trial after which the cardholder will automatically be charged, you must notify the cardholder that the trial period is ending – 7 days before the first payment.
• Having a clear and simple cancelation policy and refund policy reduces the number of consumers who resort to disputes. Verifying your customer’s email and mobile number are good ways of disproving false fraud claims.
• It is required by card scheme regulations to provide a preview of the purchase at the time of checkout.

The more proof you have that your customer received their purchase and is using it the better your chances are of winning a dispute.

For eCommerce, it is especially important to show proof of delivery signed by the customer.

It is important to provide the customer with a detailed receipt for their transaction that includes:

• Itemized breakdown of purchased items/services
• Breakdown of all fees and taxes
• Transaction timestamp
• Shipping address (eComm) or email address/account id/crypto wallet where purchased goods/services will be sent or made available to the cardholder
• Timeframe for delivery of goods/services
• Email address that the receipt is being sent to

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