These days, without a merchant account for credit card processing, one cannot even imagine of managing an on line business, be it of a service provider or sales. Hence one usually does not hesitate even a bit to apply for a merchant account. But, it is to be kept in mind that this account does not come to you free of charge and hence there are quite a few charges such as mid-qualified and non-qualified surcharge, chargeback fees, transaction fees and minimal monthly maintenance fees. But the maximum revenue loss in an online business accepting credit card transactions is generally attributed to chargebacks or chargeback fees. Hence one should be completely armed with the tools as to how it should be avoided.

Since knowing the negative impacts of chargebacks, you should be sure about finding the ways to keep down your chargebacks. Besides your loyalty towards the customer, you must first be ensured to get saved from the deceptive ones. When researched over, you can find some sure-to-work tips which will help you preventing credit card chargebacks. As a basic start, you should use AVS and CVV system for every online orders dealt. AVS is the address verification system, whereas the CVV is the credit card id verification which ensures you to be safe from counterfeit transactions. When you are demanded to deliver overnight delivery for huge orders, ensure that you make a clean verification prior before shipped. Do not ship the goods, until or otherwise you get verified notes with respect to credit card info, personal details and address too.

What exactly is a chargeback and how it can be done:

In the common terms, a chargeback is a kind of a nightmare for the merchants. It is the simple reversal of the transaction amount back to the customer. It usually takes place after the delivery of the product has been done and there are some disputes with the product or the delivery. The customer simply charges back the amount to you via the credit card issuing bank which in turn channels the request towards your merchant account credit card processing company. After that generally a mutual agreement is sought for, which if does not take place will deduct the specified amount from your account.

What are the situations when you face a chargeback?

The situations when you face a chargeback to your merchant account can be any of the following:

• The item delivered is not as promised and the customer wants to get back the amount paid and does not want an exchange. Sometimes, this may so happen after the mutual agreement phase.

• The delivery of the item does not take place on time and hence the customer raises a dispute.

• Recurring billing which by chance takes the attention of the customer. These kinds of chargebacks are generally seen in membership websites, health insurance, subscription websites, etc. Some health products also have these kinds of recurring billing which when seen by the customer in their monthly credit card statement, lures a chargeback.

Insecurity within the customer as to who has charged the specific amount. This may so happen when there is not a proper DBA (Doing Business As) issued from the side of the merchant. Merchant accounts thus should always include a proper billing address and name of the company.

• Non-fulfillment of copy requests and error in processing of the order. This may take place in case of server breakdown at the time of billing, which may deduct unnecessarily from the customer account.

• Transaction taking place with stolen cards also invite a chargeback after sometime. It is thus very important to verify the identity of the credit card.

Whatever be the case of a chargeback, it is suggested that it is better to prevent a chargeback rather than pay for it later on after you face it. Some of the steps include issuing proper DBA, proper billing information and maintaining proper communication with the customers.