Merchants being affected by EMV chargebacks
Customers are showing up to store checkout counters, in some cases, not even realizing that their new credit cards contain something called a “chip” in them. These “EMV” chips present more than just a surprise discovery for customers, they present a challenge for merchants as well. Merchants are faced with the need to come up with credit card payment solutions that allow them to stay up with technological advances that impact the retail world.
EMV stands for Europay/MasterCard/Visa and is the result of a joint venture that created an alternate technology to the credit card magnetic stripe–a “chip” that makes a credit card a “smart card.” The purpose of the EMV chip credit card is to reduce fraud from lost, stolen or counterfeit cards.
Companies like Vision Payments can offer merchant payment solutions that help them successfully grow their businesses by helping them keep up with the modern world’s rapidly-moving technology. One particular challenge merchants have to deal with is EMV chargebacks. The following explains 3 significant problems associated with chargebacks and how to most successfully deal with them.
First, Upgrade to Chip Technology
The best way to avoid dealing with the frustrations that chargebacks bring is to advance business payment solutions to include the ability to accept payment with credit cards that contain the EMV chip. With less chance of fraud and other problems that are reduced because of chip technology, chargebacks will occur less frequently. This also means that fewer sales will be lost.
Next, Act Promptly
Chargebacks, as well as retrievals (customer request for information about an unidentified charge) will require a merchant to respond immediately. It’s important to know how the processors will be contacting you as well as you needing to be aware of the individual card brand timelines for dealing with chargebacks in a timely manner to avoid unwanted fees and penalties. This will also help to prevent the bank from automatically processing the chargeback and risking the loss of a sale.
Customer Communication as Prevention
In the end, banks will make the final decisions on chargebacks, but knowing that processors will go to bat for merchants to prevent chargebacks helps. One way to prevent the need for a chargeback in the first place is to communicate store policies clearly to customers by posting return/refund rules online or with signs near checkout counters and other strategic locations. Chargebacks should be a last resort and can be avoided with clear and concise communication with customers.