Keeping chargebacks to a minimum is a key factor in creating and running a successful online store. Some of the risks associated with a high chargeback rate include rejections from online payments companies, loss of revenue and waste of time and resources, but the biggest negative arising from chargebacks is often the very reason that they are initiated in the first place: unhappy customers.

Thankfully, there are several simple measures that can be taken in order to reduce your chargeback rate. The underlying themes that are consistent are that merchants should be as open and honest with customers as possible, to manage consumer expectations and increase the visibility of the ecommerce process for the customer.

Product descriptions and promotional content

Ensure that product descriptions and marketing materials are accurate, and that goods or services do not make false claims that may result ‘goods not as described’.

Delivery times and charges

Ensure that delivery times are clearly stated on websites, invoices and order confirmations. Shipping costs should be made clear throughout the checkout and payment process.

Packaging and shipping

Make sure your shipping provider is reliable and trustworthy. Packaging should also be adequate for protecting the contents, helping you to avoid ‘damaged merchandise’ claims.

Returns and refunds policy

A clear, easy-to-find refund and return policy should be on the merchant’s website and on the confirmation email. Make it easy for consumers to return goods if they are not satisfied.

Customer support

Consumers will often want support out of normal working hours. The cardholder’s issuing bank will have the capacity to receive chargeback requests 24/7, so the merchant should also be available to resolve issues at the consumer’s convenience.

Reply promptly to inquiries and requests

Customers expect a timely response to inquiries whether sending an email, leaving a voicemail or messaging a business on social media. All channels should be monitored, and requests and inquiries dealt with quickly.

Merchant descriptors on bank statements

Ensure that consumers recognise a transaction by ensuring the merchant descriptor used by the card scheme is clear. Recognisable names such as the brand name for an online store or trading name result in fewer chargebacks than parent company and holding company names.

Contact information

One of the key reasons that consumers take their problems to their credit card suppliers and issuing banks is because they are unable to find out the best way to get in touch with the merchant. Make sure that details such as contact numbers and relevant email addresses are given.

Fraud protection

You also need to design your ecommerce site to be preventative of fraud. The best way to do this when designing your online shop is to partner with payments companies with experience in fraud prevention. has a clear mandate to help merchants avoid chargebacks. After all, we are here to ensure that all components of the payments process benefit from the transaction: the PSP, the merchant and the customer. Chargebacks are one of the major upsets that can disrupt the payments ecosystem and make all parties involved lose out.

To find out more about how’s bespoke fraud prevention systems can help to reduce the risk of upheld chargebacks for your online business, get in touch with our team of payments experts today.