A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report.
Charges can be disputed for many reasons. A cardholder may have been charged by a merchant for items they never received, a merchant could have duplicated a charge by mistake, a technical issue may have caused a mistaken charge, or a cardholder’s card information may have been compromised.
How can I avoid chargebacks?
Our best recommendations for preventing chargebacks are as follows:
- Subscribe to 3D Secure through your payment provider and ensure that it is enabled on the Buddi platform.
- When delivering or having a customer come in to pick up an order check their credit card and ensure it matches the one used to place the order.
- Ensure the name of your store and domain are what appear on your customer's statements so that they don’t mistake you for a fraudulent charge.
Will AVS protect me from chargebacks?
No, AVS is not a guaranteed way to avoid chargebacks. While the address verification will help reduce fraud it’s not a guaranteed solution.