Refunds don’t appear out of thin air. Most of the time reasons come down to the wrong size, colour or entirely different product sent. If a buyer receives a defective order, that can also trigger a refund. In that case, a seller should return money partially or fully, depending on the issue.
Business owners are recommended to nail down their refund policy to stay away from returns. That’s the best line of defence. Make sure your clients know about return cost (if any), receipt policy, damaged item policy, product condition requirements, replacements, exchange and processing time. Just for the record: 95% of shoppers say that they’ll buy again if the return process is satisfied.
Merchants who don’t give the client’s money back are likely to be exposed to a chargeback. The process looks like this:
- a customer contacts their issuing bank to file a chargeback;
- the bank informs a card network and an acquirer to address the issue;
- then the charge data is forwarded to the merchant through the payment gateway, saying that they have to cover the demanded sum coupled with chargeback fees.
How is a chargeback different from a refund? A seller is obliged to pay back no matter what. Actually, a bank itself can debit the required sum from the merchant’s account. Read more about all the nitty-gritty details of the chargeback procedure in our article.
Sure thing, merchants can dispute chargebacks. And they should do it if they see the friendly fraud is taking place. It’s when buyers report fraudulent transactions to batten on sellers. To stave off the worst and minimise chances to be taken to the cleaners, you need a reliable payment provider like Tranzzo by your side.
First off, we comply with the 1 level of the PCI DSS security standard. That enables us to safely process over 6 mln transactions a year. Tranzzo also leverages a broad spectrum of anti-fraud tools. By using 3DS, KYC verification and our own anti-fraud system, we eliminate the risk of any suspicious operations. Learn more about our security solutions by the link.