Online payment processing is necessary in order to conduct business online; however, it can often come at a high price and a handful of avoidable blunders can drive that cost up even more. Follow these five easy steps to save money when it comes to your online payment processing.
- Use Accurate Labels â€“ One of the quickest ways to rack up unnecessary chargebacks and dramatically increase customer service issues is using vague or inaccurate descriptors â€“ or the text that accompanies each charge on a customer's credit card statement. If a customer that purchased a product or service from you is unable to recognize the charge, they may think the transaction is fraud. Use the same company or product name on the statement that was used during the sale process so the customer will immediately recognize the charge.
- Know the Limits of your Merchant Account â€“ If you opt to acquire your own merchant account (as opposed to utilizing a third-party merchant), make sure you know and understand the limits pertaining to the amount of volume you can do. Trying to process big orders and large dollar amounts can result in your merchant account provider placing a hold on your account.
- Update Merchant Account Records â€“ The items that you sell should be listed specifically on your merchant account records and updated as soon as you start carrying a new product. A merchant account provider can withhold funds if you process any abnormal order; for example, if you list that you sell t-shirts but then try to sell a large ticket item, like a $2000 television, funds will likely be withheld.
- Find a Specialist â€“ Opt for an online payment processing provider that specializes in CNP (card not present) transactions. When it comes to online transactions, card authorization as well as chargebacks and refunds are handled quite differently than those with brick-and-mortar merchants. Such providers also typically offer a rich suite of fraud prevention resources and tools designed specifically for online transactions.
- Closely Monitor Chargebacks â€“ Keep a close eye on chargebacks filed. Chargebacks are usually the result of fraud, poor customer service, or dubious products (think wrinkle cream or hair growth treatments). Most reputable, well-established payment processors will offer suggestions or changes that can be made to refund policies and customer service processes that can reduce the number of chargebacks a merchant faces.