Having a membership or subscription model business has been a trend in the way that businesses structure how products and services are sold. It is a great way to ensure future income and know how much labor will be needed.
However, this business model does come with the likelihood of an increased risk of chargebacks. Customers will forget that they sign up for a service or decide they really don’t want the service any longer. Instead of contacting the business for a refund, customers just contact their bank and file a dispute.
Unfortunately, in many cases the customer is victorious and the business will incur a loss.
Here are some tips for Reducing and Preventing Chargebacks in Reoccurring Transactions
- Be explicit in making sure that customers are aware of reoccurring transactions
- Send billing reminders a few days before the transaction will be debited from customer account
- Send an initial opt-in email *Make sure customer have your phone number and url
- Update your information and descriptor with your credit card processor with the correct customer service phone number, email, and URL.
Prevention is the key to stopping chargebacks. Making sure your customers are properly informed is the best prevention.
Using a Certified Payments Professional (ETA CPP) when setting up your merchant account is a way for you to know that you are working with an expert in the Payments Industry. These individuals are certified through the Electronic Transaction Association (ETA). They are familiar with PCI Compliance and what it means to your business.
The ETA CPP program sets the standard for professional performance in the payments industry and is a symbol of excellence. It signifies that an individual has demonstrated the knowledge and skills required to perform competently in today’s complex electronic payments environment.
Discovering whether or not your sales agent is certified is as simple as vising ETA CPP Registry and inserting the sales agent’s name (I did find that some names needed to be entered in all caps).
Electronic Merchant Services is structured so that all accounts are managed by a Certified Payments Professional. If you are looking for a new merchant account or would like to have someone help you navigate the complexities of what you currently have in place you can reach us at email@example.com or 208-273-5575.