Payment chargebacks happen when a customer disputes an item that appears on their credit or debit card’s transaction reports. In most cases, customers may initiate the chargeback process because they believe there was fraud involved. In other cases, a customer might do so because they’re confused about a business’s payment terms or because they deliberately want to avoid paying for an item. In any case, as trends in e-commerce and card adoption converge, online payment portal disputes like chargebacks will become a fact of life for online businesses.
Excessive chargebacks on debit, credit, and virtual payment cards can cause a lot of issues for growing small-to-medium enterprises (SMEs). Left unchecked, they can reduce cash flow and cause losses of income from chargeback processing fees and inventory losses. At worst, high chargeback rates can also damage an SME’s reputation among customers and card providers, potentially limiting its growth.
But while chargebacks are inevitable, they also offer opportunities to delight buyers and convert them into advocates for your business. In this quick guide, we’ll look at several best practices for turning chargebacks and other payment disputes into positive experiences:
1) Familiarize Yourself with Your Online Payment Processing Service
To effectively handle payment disputes, it helps to understand the policies and processes followed by your online payment processing company. Different online payment platforms and providers have their own dispute procedures, and their respective protocols can be quite different for a given situation.
In the Philippines, SMEs have come to rely on Maya Business to offer both the best online payment processing solutions and the speediest resolutions on payment disputes. Maya Checkout, our flagship online payments gateway, is supported by a knowledgeable team who is also familiar with the workings of popular e-commerce platforms and website builders. Maya Checkout’s easy integration and in-depth support have made it the third-party payment gateway Shopify and WooCommerce storefronts depend on for seamless payments and speedy dispute resolution.
2) Respond ASAP
Customers with a legitimate dispute may become anxious when they see an unfamiliar online payment processed on their transaction report. Consequently, delays in responding to disputes can result in a highly negative experience. Responding within the day can be instrumental in keeping the customer calm and avoiding an escalation.
Importantly, your payment processor may also require you to respond within a certain window. Prompt responses are, therefore, necessary not just for meeting customer expectations but also to protect your rights as a merchant.
3) Do Not Antagonize Customers
Chargebacks can be frustrating to deal with, especially if your SME is operating within a tight margin. However, it’s critical to maintain a diplomatic tone and avoid making accusations to contain the situation. Always show a willingness to work with the customer and find a win-win resolution.
4) Listen Closely to Your Customer’s Concerns
Nothing will frustrate your customers more than having them constantly repeat information that they already shared with you. Practicing active listening and implementing a support ticketing system will not only help you get to the bottom of the dispute, but it will also show that you are committed to finding a solution.
5) Communicate Concisely
Overwhelming your customers with jargons or unnecessary information will leave them with a negative impression of your business. Keep your responses to the point and provide straightforward explanations of your plan to resolve the dispute.
6) Show Empathy
Make sure to acknowledge the customer's dissatisfaction and express empathy. Offering a simple statement like, "I understand how this situation can be frustrating," can go a long way in diffusing tension and building trust.
7) Take Ownership of the Issue
Always do your best to take ownership of the issue. This will help keep your communications focused on the business at hand and speed up the resolution of the dispute.
8) Quickly Follow Up on Dispute Tickets
Once you've responded to a dispute, follow up within the day to assure your customer that their case is on the way to being resolved. Afterward, inform them of any updates regarding their case. Timely, proactive communication can help set your customer at ease and help turn an otherwise unpleasant situation into a positive experience.
Seamlessly Navigate Chargebacks and Disputes with Maya Internet Payment Solutions
Through Maya Checkout, Maya Business offers hassle-free online payment processing for Philippine-based e-commerce businesses. With years of experience developing finance products and online payment solutions for emerging startups and SMEs, our payments ecosystem choice for fast dispute resolutions in a booming e-commerce landscape. Create a Maya Business Manager account today to enjoy Maya Business products and top-tier customer support.
After making your Maya Business Manager account, you’ll be able to unlock the benefits of Maya 1-2-3 Grow. The Maya 1-2-3 Grow business growth bundle entitles you to a 1% MDR discount on all QR Ph transactions for 3 months after signing. You‘ll save PHP 14,600 in fees for every PHP 1 million in QR Ph sales, freeing up more cash to improve your site’s customer service experience. As part of this bundle, you can also assign a Maya Business Deposit account as your settlement account. You’ll earn a 2.5% per annum interest on your deposit account, which translates to PHP 25,000 in interest per year on a PHP 1 million deposit. Finally, signing up for this promo also qualifies you for a Maya Flexi Loan offer of up to PHP 2 million in 3 months, giving you extra funding to grow your online business. Complete your Maya Business Manager account application today to enjoy seamless online payment resolutions and extraordinary offers like Maya 1-2-3 Grow.
