Are you a small business owner wanting to learn more about chargebacks? Whether you own a small or large business, chargebacks can have a big impact on your operations and bottom line.
Retail chargeback costs for businesses reached $40 billion in a single year! The sheer volume and dollar amount of these payment disputes can cause issues for your company as you calculate cash flow and revenues.
Read on to learn chargeback meaning and why one is important for your business!
What Is a Chargeback?
You should think of chargebacks as payment disputes by a customer against your business. The most common form of a chargeback is when someone pays you with a credit card and then attempts to dispute the charge later.
While some chargebacks are honest, there are others that are not quite as forthright. Your company should know who you are doing business with and accept reputable forms of payment.
Disputing a Chargeback
Disputing a chargeback is an important part of running your business . It’s important that as a business owner, you are willing to stand your ground when a customer makes a dishonest chargeback.
This often means spending time to keep your emails well-written and punctual. Another way to protect yourself is to have strong record-keeping in response to payment disputes. Another way to protect your business when responding to payment disputes is by having a strong record-keeping system in your office.
You should have copies of documents reflecting delivery of goods to your customer. Invoices must break down the items or services sold, the amount due for these items, and payment date. Some of the best documents to have on file invoices signed by your customer.
Without a good paper trail, you may find yourself in a dispute about what one party said to another. This will make it harder for a credit card company to make the right decision.
You should vet your clients to ensure that you are working with reputable individuals and companies. Learn a lot about your customer and establish a strong professional relationship. This will help you decrease the chance you will fall victim to a chargeback thief.
Don’t forget that it’s also not unusual for a customer to request a chargeback with no fraud. Sometimes, a chargeback is proper based on someone’s experience with your business.
The Importance of Knowing Chargeback Meaning
Knowing the chargeback meaning is an important part of running your business. In today’s fast-paced business world, most employers want employees to sell a product or service as soon as possible.
Time is of the essence in many deals. You may consider foregoing your own record keeping processes to close a deal. Don’t overlook the importance of ensuring you about what a chargeback is. Then understanding how a chargeback can impact your business.
You want to avoid doing free work or giving away products without getting back some revenue in return. An aggressive chargeback awareness program can help you control these operating costs.
Are you interested in learning more about how business trends impact you? Check out our blog section for posts with tips and tricks to begin using in your office today!