How to avoid chargebacks to your website and bank account

How to avoid chargebacks to your website and bank account

I want to say this first off, there's no way to absolutely negate all chargebacks from happening. People who do chargebacks with either use their card and report it stolen in order to get their money back or they will actually steal someones card and hope they payment goes through without the card holder noticing prior to receiving the items.

I've dealt with my fair share of fraudulent purchases resulting in chargebacks and I can tell you that they are not fun. The little $10 chargebacks are pretty annoying, but the main ones you'll see are for the larger packages or items you sell.


Now then, here are some ways to deter people who plan on purchasing from you with a stolen credit card or use their own but intend to report it as stolen so they get their money back.

• Registration - Make it so that your users have to register on your website prior to purchasing. This won't guarantee that people willa avoid your website, but it will deter a few scammers from trying to purchase and file a charge back after they recieve your items.
  
• Captchas - Again, this won't guarantee anything but it will deter the dumb people who can't get past the security test lol
  
• Check the buyer and shipping locations - Usually if the two are very different, it's because there is fraud involved. Now I have had a few orders that spring some red flags for me because the addresses are very far apart, but some people buy for their kids, grand kids, etc. If you're worried about a sale like this just call the person and ask why the addresses are different. They aren't expecting you to call them, so when you do, they usually don't have a solid story of why they're different. You have to judge their response on your own and figure out if it's a genuine response.
  
• Third party fraud detection - These services will integrate with almost any website. You can pay a monthly fee for these fraud monitoring services and just put a script on your website which will block certain IPs from purchasing from you. The IPs are usually tied into fraudulent purchases. If you use Shopify, they have a good fraud monitoring system built right into their dashboard.
  

Does anyone have anything else they'd like to add?



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