When people decide to open up a merchant account in order to conduct business, or are faced with a chargeback claim, they should be aware of the fact that some mistake scan be made. These mistakes are usually due to the fact that not everyone knows how to research information and how to deal with certain situations. This is why it is important for merchants to do some serious research before signing up for anything or even to have specialized help from other people that have dealt with these problems before.
What Mistakes Can Be Avoided When Dealing with Chargeback?
From time to time merchants might find themselves in a quite delicate situation. That of a client asking for his money back on a transaction, or wanting to cancel it before it even went through. This usually happens when the product or service provided by the merchant isn’t what the customer expected or when other reasons make the customer change his mind about doing business with a certain merchant. That doesn’t mean that the merchant has done something wrong or that he has to rethink his entire business model. Granted, something like this does imply some revenue loses, and even the merchants’ image can be affected, but the idea is that the merchant can avoid these situations and even counter them if necessary. But he should always be aware of the fact that mistakes can be made if the steps he takes aren’t carefully thought out.
The biggest mistake a merchant can make when dealing with chargeback is to not try to defend against it. Accepting a chargeback without putting up any fight sends a very clear signal to your customers and partners. It says that you know you’ve done a wrong thing and don’t want to deal with it anymore. But that is a wrong attitude. Any merchant should stand by his product or service and defend it against any kind of “attack”. A lot of chargeback issues can be dealt with directly with the customer, without having to get the banks and credit card companies involved. It is all a matter of how much a merchant wants his customers to be happy and how much he believes in his business. Also, a merchant should always consider the possibility of a chargeback claim to be just a tactic from some other merchant trying to get a bigger piece of the market.
Another mistake merchants usually make when dealing with chargeback is not submitting the necessary documentation, in order to fight it, in time. Although chargeback claims are usually resolved in the clients’ favor, merchants can fight them if they can produce evidence that the claim is unsubstantiated and that the customer got exactly what he ordered. In order to do so, the merchant usually has to produce a number of documents attesting to his part of the truth, in a very precise timeframe. But the problem is that many merchants don’t even know how to get the documents they need to fight chargeback claims, let alone which is the timeframe they need to respect. This is why most of them just go along with the claim and accept whatever decision is passed. This mistake can be avoided by carefully researching how chargeback works and how you can defend against it. You can also get professional help. There are many companies that will defend your business when such a claim is filed.
What Are the Most Common Mistakes Associated with A Merchant Account?
Setting up a merchant account might sound pretty straight forward for somebody who is new to the business world, and it certainly doesn’t have to be complicated. But some people may still make some rookie mistakes when they want to set up their first accounts. The most common one of all might be choosing the right bank to do it with. Setting up a merchant account is fairly easy, especially nowadays when there are so many options available. But choosing the right bank to do it with can be quite difficult. This is because not all banks are merchant banks, and not all people know this. They might end up choosing the wrong kind of account for what they intend to do. Also, they might end up choosing the wrong kind of merchant account. Not all banks have the same fees and charges for their accounts. This is why merchants have to be very careful and do their research in order to make the right decision before signing up to anything. Banks offer specialized officers that can help merchants and guide them through the entire process, in order for them to make the right decision.
Another frequent mistake merchants make when wanting to open a merchant account is not checking the fine print when it comes to rates, fees charges and contract duration. Over the years a lot of merchants have had trouble getting out of contracts due to hidden clauses or because they didn’t pay attention when they signed. People have to understand that a merchant account is a business account and the fees and charges that apply to it are different than those that apply to a personal account. That is why they might see strange fee names or unfamiliar charges. Also, some charges might even apply to your customers. That means that they might even be forced to stop doing business with you which can translate to revenue loss and a very bad image in the community. But in order to avoid any unpleasant situations, the merchant should always analyze any offer very carefully and make sure that he is being told everything up front. The best way to make sure that you are not being charged anything more than what you have been promised is to check with a legal adviser before signing anything. Although this mistake can be mended, it might end up costing you thousands of dollars, not to mention time and stress.
