A chargeback penalty fee is incurred to the merchant for each incoming chargeback even if a chargeback is decided in favor of the merchant. Excessive incoming chargebacks also count against your threshold which in turn can become a deciding factor to all credit processing providers to service your business.
We offer merchants the ETHOCA service, a chargeback reduction program as an alternative to help merchants actively keep track of chargebacks. Through this program, you are notified of chargebacks prior to them being officially submitted and in thus providing the merchant an opportunity to resolve the issue in real time without it counting against the merchant’s chargeback threshold.
- We suggest merchants to keep track of all sales receipts and any terms and conditions they may require their customers/clients to sign at the time of purchase up to a year.
- For individual sales over $1,000, obtain an imprint of credit card used.
- For delivered goods, we recommend shipments be made to billing address used in transaction. We also suggest including a signature receipt when received.
- In the event of suspicious activity, verify with the cardholder’s issuing bank of any fraudulent activities on the card prior to servicing or provide goods to customer. If cardholder cannot be verified and transaction has already processed, issue refund right away.