In any business, the focus is on satisfying the buyer or customer. Customer experience aka CX is central to companies. Whether customers are seeking service in a hotel or airport, they require quality products and services. Anything that doesn’t meet their expectations or ruins their experience may trigger a chargeback claim or lead to abandonment.
According to the Chargeback Triangle, 63% of shoppers reduce their contact with a seller after a chargeback.
It shows that business owners should seek to resolve customer issues and do business in a friendly manner. The merchant should take some steps to address chargeback disputes without ruining customer experience.
How Chargebacks Affect the Retailer
The impact of chargeback to vendors and store owners is far-reaching because they take most of the liability of the reverse charge. In the event of a dispute, the business pays two-thirds of the chargeback fee.
Despite resources being spent daily to train workers on customer service, errors are inevitable when handling different customers. It can be a miscalculation error or an expired product or a long anticipated refund; yet it can impact your CX. These errors, if not carefully handled can lead to chargebacks and losses to the merchant since existing rules favor customers more.
Due to the ease of communication these days, it is easy to have dispute go viral and ruin the reputation of a business. Therefore, the merchant should resolve the dispute as fast as possible to prevent significant damage to the business.
How Chargebacks Affect Credit Card Issuers
Making sure that the customer is satisfied and still using his/her card is important for issuers even after a disagreement. The issuers must provide temporary credits as the retailer addresses the chargeback issue with a customer. This triggers the retailer to offer a chargeback in a bid to prove that the transaction was legit.
Shoppers have no issue in using the card after a dispute if they are refunded to their expectations. Research indicates the customers increase the use of the card after such a refund since they recognize that the issuers care about them.
Issuers are responsible for reversing the transaction and are often forced to base their decision on chargebacks on value and not on the reason of disagreement. They place simple security measures such as maximum amounts to prevent fraud cases. Additionally, they can set up the necessary resources to monitor these transactions, though it is expensive.
To avoid running customer experience due to unsolved chargeback disputes, business should focus on resolving the dispute peacefully and recording all info that can prove handy during the sales process.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about assisting businesses get chargeback insurance as he is with traveling and spending time with his dog Cooper.