Online businesses that process card-not-present transactions, especially in the dating and entertainment industries are considered more chargeback prompt. This is why they need to take the necessary steps to prevent suspicious activity of their users that can affect not only their business but also the whole industry they operate in.
Websites that engage millions of users, like dating, need to have the right tools in place, especially when they sell their products or services online. But, how to find a perfect match when it comes to payment processing? Is it even possible to fall in love with the payment provider?
Well, as we all know, love goes hand in hand with ups and downs and it takes time to find the perfect match. The same is in business — sometimes, you need to find out what works for your company and what needs to be changed. You also need to be prepared for breakups.
Online companies, not only ones that operate in the entertainment industry or dating, have to tackle the chargeback problem. Not to mention businesses considered high-risk, as, for them, it is especially a touchy one.
However, every industry can be hit with a chargeback, so the sooner merchants find a reliable payment solution, the bigger their chances are for preventing massive money loss.
Effective anti-fraud tools
Additional layers of anti-fraud tools delivered by a payment processor always help, as using them lead to tightening internal fraud controls. And, which is important, it doesn’t have to come with additional costs.
Dating website owners, as well as medium or high-risk businesses, that are on the market for a dozen or so years now need to remember that standard fraud controls like geo-targeting or AVS could not be enough any longer. Fraudsters are becoming more sophisticated with their attacks, so some of the companies need to tweak their fraud solutions that may be outdated, especially when they use these tools from the very beginning.
However, they should beware of overly strict fraud filters as they might cause labeling genuine transactions as suspicious, therefore, as a result, they can lose customers. The perfect scenario is when a merchant implements a flexible anti-fraud solution with filters that adjust automatically to a certain industry.
It’s not that easy to find a balance in fraud prevention, especially when businesses need to tackle a number of so-called friendly fraud, which hurt profits in the long run. They need to effectively eliminate suspicious users without turning away good sales and overstepping a chargeback threshold.
This is why it is recommended for dating and so-called high-risk industries to tighten fraud controls and add a non-invasive 3D Secure authentication that reduces the number of chargebacks right away. It’s good to note that this ‘non-invasive’ factor gives online companies the highest protection without causing any drop in conversion. We all know that decreasing conversion is one of the major reasons why merchants don’t want to implement a typical 3DS verification.
What also can help, especially for subscription-based companies, is the option such as retry logic so they can set up rules in their account settings for making multiple charge attempts. The same goes for automatic updates to cardholder account information which enables merchants to reduce the number of authorization declines.
Communication between businesses and customers
One of the major things that are usually overlooked is communication between merchants and their customers. Believe me or not, but if a merchant doesn’t respond or is unwilling to resolve the customer’s problem, they can end up with a chargeback.
Online merchants should also know that a lot depends on the chargeback reason code itself, as each of them might come with different evidence that needs to be provided. There are so many situations when people dispute credit card purchases without a legally valid reason.
This is why we, at SecurionPay, highly recommend keeping customer support information visible on the website, and adding clear information and details regarding recurring transactions, including fair instruction for the cardholder about the communication method.
The response time also makes a difference, so we suggest providing customer support that mirrors the industry standards and reduces the wait times. In an ideal world, customers’ inquiries are addressed in real-time. Slow response times for customers’ messages, especially among entertainment industries, leave a bad impression and affects their bottom line.
Overall, companies should follow a simple rule: Make customers love you and you’ll see how willing they will be to recommend your products and services. And if it can lead to a fewer number of chargebacks, why not give it a try?
The goal for each and every business is to not end up with rejecting legitimate orders. Still, many online businesses are like tightrope walkers. When they don’t have the right tools in place, the problem perpetuates and causes huge revenue losses.
Also, companies with too many chargebacks can negatively affect other merchants, which can cause labeling in the entire industry as high-risk. The thing is that, sometimes, companies just have to set their mindset to pave the way for better decisions. For love’s sake!
I’d be more than happy to discuss it further during the forthcoming TES Affiliate Conference. Let’s meet there and talk about all the possibilities the reliable payment platform can bring to your business!
Author: Lucas Jankowiak, CEO of SecurionPay, a payment platform that delivers Always Better Payments.
You can meet Lucas and SecurionPay Team at the upcoming TES Affiliate Conference in Prague 14-17 September 2018.