- Consumers with ill intentions want to consume a product or service for free. They buy things, pay for them, and they create a chargeback demand once it reaches them. Doing it several times gives them a chance to own a product without actually paying.
- Customers sometimes forget that they have made a payment to a merchant. Otherwise, sometimes a family member makes a payment from their credit card, but the cardholder does not agree.
- The product reached the customer but was not according to expectations. Here two points emerge one is the product didn't meet expectations, and second, the customer mentioned fake faults in the service.
- Maybe the chargeback demand is made by a fraudulent after making a purchase. The fraud detection tools of a merchant account provider can spot such transactions. After that, the customer is informed immediately.
Ways to prevent chargeback fraud
Let us discuss how an online casino merchant account and the casino payment gateway can help prevent friendly fraud of chargeback.
Transaction descriptors are one of the best solutions
Transaction descriptors are the payment slips with the company name, product name, and the amount paid. Sometimes, buyers forget that they have purchased something. In such a situation, when they look at their credit card statement and do not recognize a transaction, they raise a chargeback demand. In such a situation, even the issuing bank cannot deny the customer because the merchant has not mentioned the product and price, and it is natural to get confused.
High-risk online casinos should specifically use transaction descriptors to ensure they do not face any chargeback fraud issues. Another solution is, you should remind your customers about recurring payments. For example – 3 to 7 days before the due payment, send a notification to the consumers to keep them mentally ready. Also, it helps the consumers add the amount timely in their bank account and not miss the due date of payment.
Mention your refund and chargeback policy PRECISELY
Merchants should make their customers responsible for their transactions. Today, in the era of information technology, it is legally vital for merchants to display their policies clearly. If you have completed your merchant duties, it is time for the consumer to be responsible for his action. Always describe the chargeback and refund policies clearly and in big fonts on your websites.
Casino merchant accounts always have detailed records of the processed transactions. Besides this, the 3D secure technology-supported transactions are complete only when a customer enters the pin code sent by the merchant. In such a situation, if a buyer makes a false claim for a chargeback, the merchant can fight against it and win it. Today, when everything is transparent between the brands and the customers due to legal obligations, merchants can also protect their rights against unfair practices.
Mention the reward rules
In online casinos, the reward is the main perk for the investors, making them invest millions and billions. But at the same time, the commitments of prizes can be quite complicated if not explained clearly. If a casino merchant announces any reward for the casino players, he should describe every necessary condition. For example, a casino announces a special gift for new players, but he misses defining the term 'new.' A player who joined one week back is also unique, and the one who joined the casino two weeks back will also consider himself new. He will surely demand a chargeback if the latter does not get the reward.
As a merchant, you need to be clear about your reward policies. If any mistake happens in this case, even your online casino merchant account or payment gateway cannot prevent such claims. A business should always be clear about how it is going to implement a new reward plan and what are the terms and conditions for it. Precisely mention the reward terms; otherwise, nothing can prevent a chargeback. Clarifying the consumers about a service in advance is the best way to avoid chargeback issues.
Why should merchants fight against chargeback fraud?
For many precise reasons, the merchants should always stand against a false claim of money back. Usually, businesses do not react to it and silently refund the amount, but it is now time to take some measures.
- If merchants do not stand against false claims, it spoils their business goodwill. It can even harm a business if the chargeback ratio exceeds the idol limit of 1%.
- Fraud customers think it is easy to make a fool of this merchant because every time they raise a chargeback demand, it gets accepted.
- The card-issuing banks think the merchant is guilty, which is why it readily accepts the chargeback demands. In this situation, the merchant cannot fight strongly against any money-back claim in the future.
- Recurring chargebacks in an online casino attract the attention of fraudsters, and they may also try to do the same. The business can become an easy target for fraudulent activities, and the company may close.
- Silence against customers' unfair practices unnecessarily invites legal institutions' attention. Online casinos are already under the sharp eyes of the law, and due to false chargeback demand, honest merchants may also suffer.
The merchant accounts provide transparent transaction data for merchants. Their fraud detection tools work efficiently with the international payment gateways and prevent merchants from unnecessary chargeback chaos. Correctly understanding the reasons for chargeback fraud can help you prevent them efficiently. If you have not followed any wrong practices in business, you can fight against wrong or fake chargebacks. Are you also looking for a chargeback prevention strategy? Visit paycly.com and find suitable online casino merchant account solutions with payment gateway services. Advanced FinTech tools simplify business operations, and merchants can flourish confidently in a predictable atmosphere.