Reducing Chargebacks

Best Practices to Prevent Chargebacks

When customers are charged automatically with our auto-charge or auto-pay features, and do not manually pay the invoice themselves, there is an increased risk of bank-initiated and customer-initiated chargebacks occurring. In order to mitigate ACH chargebacks when utilizing auto-charge and auto-pay, we have outlined our recommended guidelines.

1. Do not attempt to re-charge a customer after a failed ACH transaction. First, notify your customer to confirm that their bank account information is correct and that they have sufficient funds in the account.

2. Ensure you are charging your customer’s preferred payment method, and they have denoted this in their dashboard accordingly.

3. Confirm customers are aware they are being auto-charged or set up on auto-pay

4. Clearly communicate your refund policies to customers, and make it easy for them to request a refund if they are unhappy with their purchase

If ACH chargebacks persist with any given customer, our team will help you develop a strategy for capturing payment without any issues.

---

Reducing Fees from Chargebacks and Disputes

If a chargeback occurs, prompt action can help resolve it and avoid future disputes. Here’s how to handle them and prevent repeated issues.

• Standard ACH Chargebacks: If a chargeback occurs, contact your customer to ensure the payment is successful upon retry.

• Unauthorized ACH Chargebacks: Ask your customers to whitelist Originator ID 8263863381 before initiating a payment.

• Credit Card Disputes: Make sure your company name is clear on statements and invoices are detailed.

• Credit Card Transaction Fees: Pass them through to your customers.

• Debit Card Fees: Encourage ACH payments when possible.

Love our platform? Rate us on Channel Program and check out our Referral Program page!