Chargeback in e-commerce: 5 best practices to avoid canceling purchases after Black Friday

Chargeback in e-commerce is a process by which a customer disputes an online purchase transaction with the card issuer. The situation can occur for different reasons, such as allegations of fraud, processing errors and commercial disagreements and disagreements.

These and other occurrences can lead to the cancellation of purchases, thus harming company revenue. Furthermore, the issue may become more frequent on busy commercial dates, such as Black Friday and Christmas.

To avoid this type of problem, check out 5 best practices to prevent canceling purchases, especially on seasonal dates!

How to avoid canceling purchases after Black Friday? 5 good practices

To prevent the cancellation of post- Black Friday purchases and avoid inconvenience and financial problems for the business, it is essential to pay attention to some good practices.

Discover the top 5 below!

1. Adopt an efficient order approval process

Firstly, it is essential to ensure that the company has an order verification system that assesses the authenticity of the buyer and the validity of the transaction. This measure may include questions such as:

• identity and address verification;
• analysis of payment data;
• purchases historic.

2. Offer a good shopping experience

Another essential practice to avoid canceling purchases post-Black Friday is to ensure that the purchasing process is easy and intuitive for customers. This involves, for example:

• have a well-designed, fast, organized and complete website in terms of information;
• offer different payment methods , with clarity about the conditions offered;
• have a simplified checkout process.

3. Count on an efficient anti-fraud system

In addition to the previous points, it is essential to use reliable tools, technologies and services to identify and prevent fraudulent transactions. These mechanisms generally use AI (artificial intelligence) to cross-reference information and analyze:

• consumer registration data;
• purchasing patterns;
• user geolocation;
• behavior patterns.

Using this and other data, the system is able to classify the transaction ‘s risk level . As a consequence, he may or may not authorize the completion of the purchase.

4. Communicate clearly and transparently with the customer

Another extremely important practice to avoid canceling purchases after Black Friday is investing in good communication. It is essential to perform different tasks, such as:

• keep customers informed about the status of their orders, shipping and delivery;
• provide different contact options (phone, chat, email);
• be available to answer questions and resolve problems promptly.

If there is any delay or unforeseen event regarding the order, it is essential to speak to the consumer quickly, clearly and transparently. In fact, good communication must be part of the customer’s entire purchasing journey, from initial research to post-sales.

5. Implement transparent return and refund policies

The fifth top tip for preventing post-Black Friday purchase cancellations is to have clear and accessible return and refund policies on your company website .

This action demonstrates more transparency and helps build trust with customers, as they know what to expect if they are dissatisfied with the product or service. It is also essential that the company adheres to all of these policies consistently.

It’s worth keeping in mind that resolving the problem amicably is better than suffering a chargeback. Therefore, have well-defined return and refund policies and, if necessary, make a refund.

In addition to these 5 points, it is worth highlighting that the company must stay up to date with consumer protection regulations. If necessary, you should seek legal advice to protect your interests in cases of unfair or fraudulent chargebacks.

A proactive approach to preventing these occurrences is essential to maintaining the financial integrity of the business and ensuring customer satisfaction.

How to prove an improper chargeback?

By following the 5 previous good practices, it is possible to reduce the chances of canceling purchases post-Black Friday. The next step is to know how to act if this situation happens — and, worse, if it is an improper chargeback.

In this scenario, it is crucial to look for ways to prove this irregularity. To do so, you must follow some specific steps. Look!

Gather documentation

First, collect all information related to the transaction. For example, order records, proof of delivery, customer communications records , receipts, invoice and any other relevant documentation.

Analyze the reason for the chargeback

Then, evaluate why the customer disputed the transaction. In general, this information is provided by the card issuer. Understand the consumer’s claim to prepare a solid defense.

Prove product delivery

If the company sells physical products, provide evidence that the merchandise was delivered to the customer. This information can be obtained, for example, through tracking data or proof of delivery with the consumer’s signature.

Talk to the customer

It is also recommended to contact the customer and explain the situation in a friendly and professional manner. Sometimes, they may have disputed the charge in error and good communication can resolve the issue.

Prepare a letter of representation

If communication with the client does not resolve the situation, prepare a letter of representation. In it, you must explain in detail why the chargeback is improper and provide all the evidence you have collected to support your argument. Follow the card issuer’s guidelines for presenting it.

Send the documentation to the card administrator

After preparing the cover letter, send it to the card administrator within the established deadline. This question is essential to ensure that your request is valid.

Track progress

After submitting the documentation, follow the progress of the case with the card administrator . They will review your defense and make a decision after a specific deadline. In case of a positive result, the amount relating to the purchase will be posted back to the company’s receivables.