How to prevent Chargebacks

Charge-backs. Something every business owner is familiar with, but no one wants to deal with. They are a frustrating part of business and are often the result of clients simply forgetting they frequented your business. Most customers don’t know that charge-backs result in the business being fined. They don’t know about the fees merchants are hit with, or the fines if a monthly charge-back rate exceeds the threshold. It is easier for customers to call their banks and dispute charges rather than having an uncomfortable conversation with a manager because their policy is unclear. The best way to combat these disputed charges is to have a great store policy. The better your store policy, the less money you will lose through charge-backs. Here is a list of 5 things your store policy should include to prevent charge-backs and successfully refute them:

  1. Keep it simple.
    1. You want your customers to feel comfortable bringing any issues to your attention. You don’t have to include intimidating legal jargon to reach your customers. Try to write your policy in an easy style that reflects your business’ brand. Make your policy approachable. You want your customers to remember the brevity and ease of the policy without a formidable stand.
  2. Be 100% clear about your expectations.
    1. Be clear about the types of situation that constitutes a credit and refund. This also gives you a chance to make your customers aware of the steps that will be taken if they are unsatisfied. Clarity will keep customers returning.
  3. Help your customers
    1. Customers want an easy, stress-free experience. This means from setting up the appointment, to finding your location, to enjoying your services, and paying. If any part of the process requires too much effort, they might not return to your place of business.
  4. Offer Alternatives to refunds
    1. You don’t have to automatically give a full refund if a customer is unsatisfied with their service. There are more cost-efficient alternatives that can keep your customers happy. Think about offering a gift card, a discount the next time they come in, or even re-doing the service. This gives them a nice incentive to come back and keeps their money locked in your store.
  5. Place it somewhere easy for clients to find
    1. Put your policy up in the open so your clients don’t have to look for it. Try the register, on a wall near your pedicure chairs, bathroom, or waiting area. You might think it’s boring material, but it helps make the customer comfortable.

A great refund policy is a vital to keeping your business protected, preventing disputes and refuting charge-backs. Take some time to go through your policy to see if there are places where you can make it easier for your customers to understand what steps to take if they are unsatisfied with the service they received.