A BRIEF GUIDE ON CREATING A CHARGEBACK POLICY
When it comes to managing chargebacks properly, a merchant must really focus on developing an effective chargeback policy. For a merchant, a chargeback policy is a very important aspect, as it has the ability to impact the chargeback either negatively or positively.
What is a Chargeback policy?
A chargeback policy is simply a set of merchant’s management standards and philosophy for disputing and preventing chargebacks. Usually, the approach to the chargeback policies differ from one merchant to another, as some prefers to be aggressive, while some likes to make their chargeback policy in a conservative way.
Many merchants accept and consider a chargeback as part and parcel of the game. But in the long run, such approach will only prove to be costly and probably disastrous as well.
Here’s a look at some of the steps that you should follow to create an effective Chargeback policy:
- Make sure that your chargeback is precise and clear to the point. If you don’t do so, you don’t really have the awareness of what exactly to proceed with while handling a chargeback. Merchants should definitely ask themselves several questions about their chargeback rates and other factors surrounding it.
- One more thing to consider seriously while creating a chargeback policy for your business is none other than the KPI. If you’re wondering what KPI is, know that KPI stands for Key Performance Indicators, which allows you analyze and asses the performance of your business.
- While developing a chargeback policy, make sure that it doesn’t interfere with your business activities such as customer retention and acquisition.
- The most important and best thing to do while creating your chargeback policy could be simply consulting professionals who have the expertise and experience in this aspect.