Chargeback Monitoring For Small Businesses

Dealing with and disputing chargebacks as a small business owner can take a toll as the process takes time, research, and labor. As the owner of a small company, you may not have the resources or personnel to fight chargebacks as they arise.


Mishandling of customer payment disputes could result in hefty penalties and fines. There are companies that offer reliable chargeback monitoring services designed to help small businesses like yours monitor, prepare for, and prevent chargebacks.


In this blog, our experts at Salus Payments will cover:

  • Professional chargeback monitoring services

  • What chargebacks are

  • Common causes for chargebacks and preventive tips

  • How Salus Payments can help

  • Choosing the right chargeback monitoring company


Image of man hand holding credit card reader and woman hand holding credit card.
Chargeback Monitoring

Table of Contents:

  1. What Are Professional Chargeback Monitoring Services?

  2. What Is A Chargeback?

  3. Common Causes for Chargebacks & Preventive Tips

  4. Fraudulent Payments

  5. Pricing, Shipping, or Delivery Issues

  6. Credit Payment Not Processed

  7. Dissatisfaction With Service or Product

  8. Subscription Cancellation Failures

  9. How Salus Payments Helps Small Businesses Monitor Chargebacks

  10. Do Small Businesses Really Need Professional Chargeback Services?

  11. Conclusion

What Are Professional Chargeback Monitoring Services?


Monitoring chargebacks is a skill that's becoming more essential in today's fast-paced business world. Partnering with outsourced professionals who can handle payment disputes is something that even large corporations see as a necessity.


No matter the size of your business, hiring outsourced experts is more effective than trying to handle chargebacks in-house. At Salus Payments, our Chargeback monitoring services include managing chargeback ratios and thresholds.


Chargebacks, also known as payment disputes, are serious matters to any company. Business owners that fail to keep accurate records of all transactions can lose track of customer refund requests.


As service providers, Salus Payments helps merchants:

  • Recover lost revenue from chargebacks

  • Prepare for payment disputes

  • Prevent future chargebacks

Monitoring your chargeback ratio is important because letting it get too high can result in negative consequences for both banks and credit card networks.


What Is A Chargeback?


A chargeback, or payment dispute, happens when a cardholder (customer) questions a payment made and asks their bank to reverse it. Disputing a payment is meant to protect cardholders from unauthorized transactions, but it can mean major stresses for small businesses.


When a payment dispute occurs, the money is held from your business until the bank of the customer works things out. If their bank rules are in their favor, the funds are refunded to the customer. If the bank sides with you, they'll send the money back to you.


This process is often complex, time-consuming, and can involve a lot of documentation and paperwork. But it doesn't have to if you work with a service provider like Salus Payments!


Common Causes for Chargebacks & Preventive Tips


The causes behind payment disputes vary. While you can't stop all of them, there are things you can do to help prevent chargebacks.


Fraudulent Payments


When a cardholder notices an unauthorized charge from your business but didn't buy anything, it could mean credit fraud. They'll most likely file a dispute in order to get their money back and protect themselves against future charges like these on their account.


Preventive tips:

  • Use a secure point on sale (POS) system that accepts debit and credit card payments

  • Train your employees on card payment best practices

  • Require customers with chip cards to entire their cards instead of swiping them

  • Use cloud-based POS software to email receipts to your customers

Pricing, Shipping, or Delivery Issues


If a customer doesn't receive the items they ordered or is overcharged for a service or product, they'll most likely file a payment dispute.


Preventive tips:

  • Have tracking numbers for every order, heave them ready, and keep them accessible

  • Make sure your listed prices are updated and accurate

  • Use delivery services that require customer signatures on receipts

Credit Payment Not Processed


A customer returns an item expecting a refund or account credit and gets nothing. Why? The reason for the return varies - it could be buyer's remorse or user error when purchasing online.


Preventive tips:

  • Outline your company's refund, return, and cancellation terms on your receipts

  • Post your return and refund policy on your website and in your store

  • Make sure you have reliable systems for handling credits and returns

We suggest learning more about each credit card company’s refund policies:


Visa | Mastercard | Discover | American Express


Dissatisfaction With Service or Product


Customers may file for a refund if they're unhappy with a service or product you provide. With products, this is common due to the item not being the same as advertised or being defective. With services, the reason for a dispute is often due to the quality.


Preventive tips:

  • Set realistic expectations for your customers

  • Provide products and services as advertised

  • Respond to customer questions, issues, and concerns quickly and courteously

Subscription Cancellation Failures


Recurring subscription payments are often beneficial for your customers and your business. However, consumers can forget about subscription renewals, creating risks for payment cancellations and chargebacks.


Preventive tips:

  • Make sure your customers understand the recurring transaction agreement (RTA) before signing up.

  • If you can, provide a visible checkbox or signature to acknowledge their understanding

  • Explain the billing amount and frequency and your cancellation and refund policy

  • Alert customers before each charge, giving them time to prepare or cancel

How Salus Payments Helps Small Businesses Monitor Chargebacks


When you think about the true cost of chargebacks, it's a matter that could make your break your company. You must factor in all potential fees and penalties, and what that could mean for your business.


At Salus Payments, a significant part of our business includes chargeback monitoring and handling payment disputes. We know the nuances of chargebacks and how different card-issuing banks analyze them. Our team stays up-to-date on changing rules and regulations and will help you navigate complex matters related to payment disputes.


Working with our experts means you’ll have access to:

  • A dedicated team of professionals

  • Reliable software

  • Accurate reporting systems

  • Strategies for identifying the root causes of chargebacks

  • Effective handling of payment disputes

Do Small Businesses Really Need Professional Chargeback Services?


Every business is unique, but merchants who deal with payment disputes more frequently should consider hiring professionals.


Businesses with high-risk merchant accounts or are considered high-risk, often see significant benefits from professional monitoring chargeback services.


Conclusion


Payment disputes with customers are not fun. This is especially true when they result in chargebacks that can directly affect your small business revenue.


With the right professionals on your side, you can monitor your chargeback ratio and thresholds. This way, you can make sure you're protected and prepared when disputes arise.


Do you want to learn more about how Salus Payments can help?


Contact our experts today to get started!

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