Chargeback frauds are like bad news that no casino merchant wants to listen to. However, it is a bitter reality, too, that is unavoidable sometimes because it is part of the game. But several ways can be implemented to prevent them. Along with the online casino merchant account, a business can easily spot and avoid chargeback frauds. The merchant account providing acquiring banks have a proficient fraud detection system working 24x7 to protect merchant's rights against a false chargeback. This blog reveals interesting and practicable ways of handling them most smartly.
Chargeback fraud is a false claim of money back by a customer with the aim to keep a product for free or the consumer a service free of cost. However, some other reasons can also be there. Fraud is also known as friendly fraud. According to research, around 35 to 40% of chargeback demands are fake. Usually, customers raise false money-back requests for items with high resale value.
For several reasons, some customers commit chargeback fraud, and if not tackled on time, it can become a big problem for acasino merchant account holder.
Let us discuss how an online casino merchant account and the casino payment gateway can help prevent friendly fraud of chargeback.
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.
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.
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.
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.
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.