All merchant accounts are prone to chargeback claims by customers. Sometimes the claims are valid, while in most cases, clients raise illegitimate complaints. If you don’t take preventive measures, your business may run losses refunding invalid chargebacks. However, an econtract can help improve your security in the following ways.
- Should identify the Credit Card in use
An econtract should determine the payment method in use. Notably, it should state the type of card i.e. MasterCard, AmEx, Visa, Discover, plus its expiration date and the last four digits. Identifying the card without necessarily disclosing a cardholder’s sensitive data helps you to reduce the chances of losing chargeback claims by unauthorized card credits.
- Verifies that buyer received the econtract
In solving a chargeback dispute, proving that a customer received a copy of the econtract requires more than just your copy of the contract. Econtract provides a solution by listing the client’s IP address, email address and electronic signature (with precise date and time) during the transaction. This data is useful when dealing with a dissatisfied customer who claims to have received no copy of a receipt or econtract.
- Give complete details of the Refund Policy
Many companies prefer to mention their return policy on their business websites and forget to mention it in their contracts. Regrettably, this is never sufficient when fighting chargebacks as customers often complain of inadequate information concerning the business’ refund policy. Listing your refund policy data on the econtract will boost you merchant chargeback protection from buyers who often win disputes by circumventing the drawbacks of a company’s policy.
- Give specific details of the Purchase
Econtracts should list with details the exact price of service or product, taxes, recurring charges, and any other associated costs. If possible, visibly outline the facts so that consumers can easily understand what they are purchasing or paying for. Also, the credit card issuer should clearly comprehend the specifics of the purchase when going through the econtract in the event of a dispute. Giving details proves useful when customers misremember the price of a particular service or good and claim an overcharge.
The issuing bank often favors customers when solving chargeback disputes. If you are looking to protect your business from invalid claims by clients, econtracts is one way to ensure all the specifics of a transaction are listed.