Reducing chargebacks can help eCommerce businesses protect revenue, merchandise, processing fees, and valuable time. These steps can help reduce eCommerce chargebacks caused by genuine fraud, unrecognized transactions, missing order updates, delivery concerns, or difficulty reaching the merchant.
These practical steps can help reduce eCommerce chargebacks while creating a clearer post-purchase experience for customers.
1. Use a Recognizable Billing Descriptor
A billing descriptor is the business name that appears beside a transaction on a customer’s card statement.
Make sure customers will recognize it. When your legal company name differs from your store name, ask your payment processor whether the descriptor can display the name or website customers know.
Including a recognizable business name and customer service number, when supported, may help prevent disputes caused by unfamiliar charges.
2. Send Detailed Order Confirmations
Send an order confirmation immediately after every purchase. It should clearly show:
- Your store name
- The products purchased
- The total charged
- The billing and shipping information
- The expected fulfillment timeline
- How to contact customer support
Detailed confirmations give customers something they can reference when reviewing their bank or credit card statements.
3. Provide Tracking and Delivery Updates
Customers are more likely to become concerned when they do not know where their order is.
Send tracking information as soon as it becomes available, including the carrier, tracking number, estimated delivery date, and a direct tracking link. Communicate proactively when a shipment is delayed.
Tracking and delivery confirmation may also provide valuable documentation when responding to a delivery-related dispute. Keep customers in the loop without chasing down orders. Explore Ordoro’s shipping and order management tools.
4. Keep Inventory Accurate
Selling an item that is no longer available can lead to fulfillment delays, canceled orders, and frustrated customers.
Keep inventory quantities synchronized across every marketplace and sales channel. When something sells out, update its availability promptly rather than accepting an order that cannot be fulfilled as promised.
Ordoro’s inventory management tools help multichannel merchants keep stock quantities organized and synchronized.
5. Make Return and Refund Policies Easy to Find
Clearly explain:
- How long customers have to request a return
- Which products are eligible
- Who pays return shipping
- When refunds are issued
- How customers should begin the process
Place this information where customers can find it before and after purchasing. A straightforward refund process gives an unhappy customer an easier option than contacting their bank.
6. Make Customer Support Easy to Reach
Customers may file a chargeback when they cannot find another way to resolve a problem.
Include support information in order confirmations, shipping emails, your website footer, and your returns page. Respond quickly to questions about unfamiliar charges, missing packages, damaged products, and refund requests.
A fast, helpful response can sometimes resolve an issue before it becomes a formal dispute.
7. Maintain Complete Order Records
Keep organized records for every transaction, including:
- Order confirmations
- Payment information
- Shipping and tracking details
- Delivery confirmation
- Customer communications
- Return and refund activity
- Product descriptions and policies shown at checkout
When a chargeback occurs, the merchant may be asked to provide supporting evidence such as receipts, shipping confirmations, or customer communications.
How Ordoro Helps Improve Order Visibility
Ordoro brings orders, shipping, inventory, and tracking information together across multiple sales channels.
Merchants can create shipping labels, monitor tracking information, keep inventory synchronized, and send shipment updates back to connected sales channels. Better operational visibility helps your team answer customer questions faster and maintain clearer order records.
Ordoro cannot prevent every chargeback, but smoother fulfillment and stronger customer communication can help address several common sources of confusion.
Frequently Asked Questions
What is an eCommerce chargeback?
An eCommerce chargeback occurs when a customer disputes a card transaction through their bank or card issuer. The payment may then be reversed, and the merchant may also face additional fees.
Why do customers file chargebacks?
Common reasons include unauthorized purchases, unrecognized billing descriptors, missing deliveries, product dissatisfaction, and unclear return or refund policies.
How can eCommerce businesses reduce chargebacks?
Businesses can use recognizable billing descriptors, clear product and refund policies, detailed order confirmations, shipment tracking, responsive customer support, and accurate transaction records.
Can shipment tracking help with chargebacks?
Yes. Tracking and delivery records can help customers understand an order’s status and may provide useful evidence when responding to delivery-related disputes.
Can inventory problems lead to chargebacks?
Yes. Overselling, delayed fulfillment, and canceled orders can frustrate customers and increase the chance of disputes. Accurate inventory helps reduce those problems.
Keep Customers Informed and Orders Easier to Track
Ordoro helps eCommerce businesses centralize orders, shipping, tracking, and inventory across multiple sales channels. Explore Ordoro’s shipping and order management tools.
