Ways to prevent chargebacks on your store

Simple Ways to Prevent Chargebacks on Your Store

Chargebacks are mostly caused by fraudulent purchases. There are a number of ways to prevent chargebacks and fraudulent purchases. Fraudulent purchases happen during the holiday season. A research has estimated that chargebacks are going to cost businesses more than $25 billion a year by 2020. There are methods you can use in order to prevent chargebacks on your e-commerce store. There are also ways to sniff out fake orders.

1. Prevent chargebacks by taking a look at previous transactions.

If the customer has a history of shopping on your site you need to take a look at previous purchases. You need to pay close attention to any previous communication that you have had with the customer previously. Some red flags that can alert you to a fraudulent purchase is if the credit card being used has been previously removed from the system. There are some cases when the customer’s orders do not have the same address and name. Other red flags are when the customer has had many previously failed attempts when purchasing on your site.

2. Check the IP address to see if its location matches the address on the order IP

I the customer is a first time buyer on your website the best advice is to check the location and the IP address of the customer from a third party services like base64. If there is no location or IP address that comes up the buyer might be using an anonymous proxy to place the order. There are some scenarios where the area code phone number doesn’t match the one associated with the IP address. This is a sign that the buyer might be a fraudulent buyer.

3. Prevent chargebacks Inspect the Domain Name and Email Address

Another important step to take in order to prevent chargebacks is to check the email address of the customer. You can do this by using sites such as whois.com.