The possible measures you can consider to reduce the chargeback loss are as follows:
- Use a shipment service which offers consignment tracking facility (for physical delivery)
- Use an Address Verification System
- Ensure CVC is mandatory on checkout page
- Ensure contact details are clear and easy to find on website and all documents (invoice, emails, etc.)
- Provide toll-free phone or local telephone numbers
- Work with cardholders to resolve disputes
- Do not complete a transaction if the authorization request is declined
- Do not accept expired cards
- Always issue refunds to the card which was used to make the transaction instead of other payment instruments. Also, refunds should be processed before a chargeback is notified and never after
- Notify cardholders before a recurring charge is debited
- All cancellation requests should be handled on priority. Cancel the transaction immediately and email the customer about the service termination along with the date when the cancellation of service was made
- Your Terms and Conditions, Refunds and Cancellation Policy, any bonus policy and any other contracts should be acknowledged by the customer. The Refund and cancellation policy should be in the form of a webpage which the customer had to accept before initiating a payment/creating an account (such as click to accept used by most e-commerce companies). This should never be behind a hyperlink
- Follow Scheme guidelines if you are accepting recurring payments
- Ensure promotions are in sync with the price you charge
- Notify cardholders of shipping delays or out of stock merchandise
- Perform fraud checks on cardholders before processing orders
- Be prompt in responding to customer queries