Particularly when you run an ecommerce alcohol sales operation, it is vital to take steps to shield your business from fraud and unnecessary tension with customers over their purchases. Selling high-ticket items can make this priority even more pressing.
The good news is that there are tangible actions that you can take to minimize chargebacks, the funds reversals that customers frequently request from their bank or card company after making a purchase.
Because maintaining robust security precautions is now more important than ever, innovators have developed an ever-evolving set of solutions that you can implement to protect your business.
Start with Address Verification Service (AVS), a system that matches the customer’s billing address to the one on file with the card issuer. Checking the card verification value (CVV) number for each transaction also helps to ensure that the buyer is in physical possession of the card.
Another effective measure is known as 3-D Secure or 3DS2. Once you have this protocol in place, you can review each transaction as it is occurring, requesting additional authentication if it detects grounds for suspicion.
Additionally, you can combine these precautions with advanced anti-fraud software that uses machine learning tools to flag potentially risky transactions in real-time.
Although these modern tools are excellent safeguards, you should never underestimate the power of manual reviews. This process can be triggered when an order amount surpasses a preset number. Then look for red flags that could be precursors to chargebacks.
These include mismatched billing and shipping addresses, requests to ship to a forwarding address or post office box, and unusual email addresses or phone numbers.
Although some chargebacks stem from fraud, many are the result of customer confusion or dissatisfaction. Making sure that all pieces of information that you provide are clear and understandable, and that you respond promptly to inquiries, can be a game-changer in reducing fund disagreements of this type.
To that end, reduce disputes stemming from unrecognized charges by providing a clear billing descriptor. In other words, the name that the customer sees on their credit card bill should be recognizable and clearly linked to your business.
Before buyers complete a high-ticket liquor purchase, require them to check a box acknowledging that they have read and agree to your refund, return, and cancellation policies.
Make this as easy as possible for them by prominently displaying all of these documents on your website, preferably on your checkout page.
Once the purchase has been made, immediately send out an order confirmation via email. It should contain a full breakdown of all costs, including price, taxes, fees, and shipping. Along with the summary of all items purchased, also include a link to your refund and return policies for easy reference.
Finally, be scrupulous about notifying buyers about expected delivery times, including tracking details and updates if there are delivery delays. Doing so helps to prevent many chargebacks.
In addition to partnering with a merchant account for online liquor retailers who are well-acquainted with the intricacies and challenges of the industry, it is crucial that you implement strategies to further insulate your company from the cost and stress of chargebacks. One of the most effective ways is to lock down your delivery procedures.
Start by requiring that all high-ticket liquor order deliveries must include a signature from an adult. Further protect your company by storing a complete set of sales transaction records, including invoices, order details, tracking information, and proof of delivery receipts.
Be sure to also retain any emails or chat logs that document conversations with the customer. Doing so will give you the hard evidence that you will need to produce in the event that a chargeback does occur.
One of the most effective ways to keep your chargeback ratio low is to optimize every interaction with your customers. This enhancement should occur at every juncture. For instance, it should be simple for customers to get in touch with you via various channels, including email, phone, or chat.
Once they contact you, their concerns and queries should be addressed promptly. Should a return or refund be initiated, be sure to process the transaction without delay – as long as it aligns with your stated policies.
Chargebacks can be time-consuming and costly for any company. When selling high-ticket alcohol products, a high volume of chargebacks can become a serious issue. These fund reversals may even jeopardize your relationship with your online liquor retailer merchant account provider.
Don’t wait until the customer has already contacted their bank before acting. Instead, implement proactive tips to minimize the effects of chargebacks to ensure that your business thrives and your customers are satisfied.