Chargebacks are a major headache for small businesses. These happen when a customer reports a transaction as fraudulent or otherwise disputed. The financial institution then, in turn, makes the small business cover the disputed amount. These can be common—one survey noted that about 25% of businesses had dealt with a chargeback at one point during the past year.
Apart from chargebacks, challenges can arise from nonpayment. The same survey found that about 10% of customers had to chase down a customer for payment for 181 days or longer. Regardless of the challenge, as a business owner, you have to meet potential issues with a healthy two-pronged approach a solid communication, and technological advancement. Using the best credit card processing company can help you; here are some more tips.
Taking steps to make sure everyone is on the same page as far as payments go is essential—as they say, an ounce of prevention always beats a pound of cure. How that happens precisely differs based on the service you offer. If yours is a business that uses contracts at the outset, think long and hard about your process. Make sure that it is clear, and if need be, go through it with your client, to highlight any points of particular interest. If you are mainly an eCommerce business, ensure that your terms and conditions are clear—particularly your returns policy, which is where a majority of issues might arise.
If you find yourself in a chargeback situation, it can seem that the most expedient solution will be to bite the bullet and cover the charge—and that may well be. For larger chargebacks, however, you may find yourself in a good position to fight back, presenting supporting documentation, signed agreements, and the relevant emails. Balance the time it takes to dispute a charge with the amount on the line, and be sure to document communications to make it easy to present them, if need be.
Another essential preventative measure for ensuring that payment issues don’t arise is accenting every method of payment you can. Whether for your eCommerce site, or at your physical location, accepting multiple payment options is a must for accommodating your customers’ preferences.
One of the most powerful options for both preventing payment hiccups, and dealing with them is to get connected with a payment processor that offers access to integrated solutions like customer relationship management, bookkeeping, and more. It allows you to have a bird’s-eye view of your business, while also giving the option to automate processes that take up time. These solutions are so powerful because they already exist inside something you’re using.
Facing payment challenges? Turn to the best credit card processing company for businesses like yours. Contact Moolah today.