One of the most common questions we get asked is around chargeback accounting. Admittedly, this is a fuzzy area. You’ve likely done a Google search and have come up with not much information about accounting and chargebacks.
The truth here is that it’s hard to provide definitive answers about chargeback accounting. This key component of business management is unique for each individual business and the software tools that are used. However, this doesn’t mean that we’re going to leave you stranded.
We’ll look at the challenges of chargeback accounting and provide a refresher on how you can prevent chargebacks. We do want you to know that you can always contact us with your questions – our team of experts is here to help you. We can provide you with better help once we know what accounting software and payment solution tools you’re using.
Challenges of Chargeback Accounting
Chargebacks can be confusing. This is a fact. However, we’re doing our best to eliminate the myths and confusion surrounding chargebacks. Knowledge is power and the more you know about chargebacks – the further ahead you are.
Chargeback accounting is different for each merchant. The answer: it depends – really does apply when it comes to chargeback accounting.
When getting ready to talk with a payment solutions expert about your chargeback accounting, remember these key points:
- Accounting software. The options in accounting software are deep, and finding the right solution can be a challenge.
- Our tip: Work with your payment solution team to find an accounting software solution that works well with your payment solution tools.
- Chargeback details. Each chargeback is different.
- Our tip: Have a solution in place that makes it easy to gain insight into your orders and prevent chargebacks.
- Accounting isn’t straight-forward. Managing the accounting for your business is confusing enough, and chargeback accounting only compounds this.
- Our tip: Don’t do your own accounting, get expert professional accounting help.
- Be prepared. The chargeback representment process can be lengthy, and this impacts how and when you can account for chargebacks.
- Our tip: Use proven payment solution technologies to make your chargeback representment dispute easier.
Overall, we want you to be as prepared as possible to manage chargebacks and ultimately prevent chargebacks from happening. Chargebacks may still happen – knowing how to react and account for these is key. Using proven payment solution tools such as Order Insight or Verifi’s Global Payment Gateway help make it much easier for you to prevent chargebacks.
Best Option Is Preventing Chargebacks
What sets Verifi apart from other companies is that we aren’t going to tell you that chargebacks are a headache or a nightmare. Yes, they are challenging – but they are preventable and can be managed. The key is in taking the right steps to prevent chargebacks and to detect chargeback fraud.
Keep in mind these key best business practices that can help prevent chargebacks:
- Eliminate customer confusion. Make sure your billing descriptors are clear and obvious.
- Simple return/refund policy. Keep this policy simple and easy-to-understand. Remember to make it readily available to your customers.
- Good customer service. A strong customer service team can prevent the confusion that typically results in transaction disputes.
- Know your customers. Use CRM and payment solutions that provide insight into your customers, allowing you to stop fraud before it happens.
- Be accessible. Make it easy for your customers to contact you with their concerns on purchases.
- Clear shipping terms. Require signatures for product deliveries. Ensure your shipping timeframes are manageable.
If you do receive a chargeback, don’t panic. Know that expert professional help is easily available – contact us with your questions. Remember, we won’t overwhelm you with any misconceptions about chargebacks – our goal is to give you the facts and support your need to prevent chargebacks and to stop chargeback fraud.
Learning More About Chargeback Accounting
As we highlighted above, chargeback accounting is different for each unique business. One of the best approaches is to learn all you can about chargebacks so you know which questions to ask when interviewing payment solution partners.
- What is a chargeback, and why do they get issued?
- Guide to Merchant Chargeback Rights
- How to Fight Chargebacks
- Order Insight for Merchants
- What do Chargebacks Really Cost?
- Safe, Secure Payment Processing