There are only so many parts of running a business that you can prepare for. Like many aspects of life, it’s difficult to truly understand what it takes to be a successful business owner until you’re in the thick of it.
For example, one thing that no one tells you about starting a business is just how problematic chargebacks can be to an owner’s bottom line. Individually, these fees may not add up to much, but when underestimated and mismanaged, they can end up costing you big time.
When searching for the right payment processing solutions for your business, consider the importance of chargeback defense.
What Are Chargeback Fees?
In the simplest of terms, a chargeback is a forced transaction reversal initiated by a cardholder’s bank. If a customer feels dissatisfied with a product or service, or that a charge was fraudulent in some way, they are able to contact their bank and essentially request a refund.
Upon doing so, this will set into motion action taken by the cardholder’s bank to verify their claims before removing funds from a merchant’s account to put back in the customer’s.
Chargebacks were put in place as a sort of checkpoint, protecting consumers from fraudulent situations. However, nowadays it’s a “friendly fraud” practice that has been abused and overused for all the wrong reasons, such as buyer’s remorse, wanting to make a return after a businesses’ policy has expired and more.
Depending on the bank issuing the chargeback, fees associated with the transferring of money can vary from $20 to $100. Added up over time, these added costs chip away at your profits and make it much more difficult for you to focus on other aspects of building a business that will prove crucial for long term success.
How to Reduce Chargeback Fees
Reducing chargeback fees and requests starts with having proper chargeback defense solutions working in conjunction with your payment processing system. The following are tools to consider for helping your business mitigate fraud.
Easily Manage Disputes
One of the issues with chargebacks is how often they fly under the radar. Often times, many business owners won’t know they’ve been hit with one until after the fact, which can be incredibly frustrating.
BAMS offers peace of mind with chargeback defense tools like Instant Dispute Alerts and Online Dispute Management. Not only will you be made knowledgeable of chargeback disputes as they’re filed, but you’ll also have the opportunity to fight back from one convenient location. All of which certainly beats having to rely on postal mail and customer support lines.
Go on the Chargeback Defense with Fraud Protection
In partnership with services like Verif and Signifyd, BAMS helps stop chargebacks before they happen. The less time you have to spend reviewing and flagging every dispute that comes your way, the more time you can dedicate to your business’s developing reputation and growth.
Final Thoughts: Why Chargeback Defense is Important
Every sale matters. Protect your business with chargeback defense solutions you can trust. Contact BAMS today for a free price comparison and quote!