Chargebacks: how to avoid refund requests
Chargebacks, or reverse transactions, were invented to protect shoppers from fraud and give them an easy way to dispute suspicious purchases. But for businesses, chargebacks often become a real headache, threatening the stability of income and even the very existence of the project.
High-risk categories like IT, finance, subscription services, tourism, gambling, nutra, retail, and others are particularly affected by chargebacks. Not only do they have more chargebacks — that’s why the categories are called high-risk — but also payment systems, banks and regulators tend to quickly block the high-risk merchant accounts and refuse to open new ones if the chargeback ratio becomes too high.
At the same time, contesting chargebacks, even if successful, does not reduce the coefficient, which means that it is much more important to successfully avoid chargebacks than to resolve the dispute in your favor. There are several approaches to solving this problem with different levels of efficiency.
The first approach, the least efficient but worth mentioning, is based on a counterintuitive fact: sometimes it is enough for consumers to know that it is easy to make a return in order not to do it. By making the return policy as simple and transparent as possible, you can achieve some reduction in the number of chargebacks.
The next trick is a must for every business, and that is fraud prevention. Make sure that payments are accepted using all modern security standards, and also invest in a good anti-fraud system that can recognize users who often dispute transactions.
Finally, there is one way to avoid chargebacks with 100% efficiency, and this is accepting payments in cryptocurrency. Transactions recorded in the blockchain cannot be edited or canceled, so the crypto completely eliminates the risk of chargebacks. At the same time, it is very easy to connect cryptocurrency acquiring for your project with the BT-Wallet service from BetaTransfer Kassa.
With BT Wallet, you can make transactions in Bitcoin and Ethereum with a zero acceptance fee, as well as in USDT (TRC/ERC20) with a commission of only 2%. For those who are worried about the volatility of the cryptocurrency rate, it is possible to fix it in USDT to avoid losses. Transaction processing only takes up to 15 minutes. And, of course, with crypto payments, the business is safe from chargebacks, аs this payment option does not allow a refund to be made.