Call them chargebacks or deductions, but refunding credit charges to customers can slow down business and cut into your profits. Many retailers and vendors find chargebacks hard to deal with, often finding that individual chargeback requests are too small to research and look into individually, but collectively added up to a significant portion of potential profits.

Sometimes it is hard to know how to address chargebacks, since many parties are involved and there are several things to consider when trying to reduce your chargebacks.

Work out how to deal with each type of different chargeback you regularly receive. Identify the key questions you ask to work out whether you will chargeback without question, research, accept or dispute. Record how long it takes for each customer to provide the information or action needed to advance the chargeback resolution process. Be sure to know how long you have to dispute a deduction.

But the real key to minimising and avoiding chargebacks is to stop fighting the daily fight, and concentrate instead of which element of your business is weak and in risk of having further chargebacks. Identify the key elements of your business, from products to service, setting to delivery, and spend time on reducing the chances of chargebacks occurring in the first place.

When you start to look at where your charge backs come from and what the issues are which affect them and how you can work to minimise their impact on your business.

Tags: Chargebacks, Retail