Mean chargebacks causing a headache for the online clothes shop? Visa has some help. It’s the Visa Rapid Dispute Resolution. The problem that the customer is trying to solve is done quickly, often in less than a minute. It functions to eliminate chargebacks before they happen. This automatically makes it so you are not losing any money and you are also saving time. What is the importance of your product? Let’s get into it.
What is Visa Rapid Dispute Resolution?
Visa Rapid Dispute Resolution is a technological tool created by the Visa payment processor to deal with the solvable problems immediately. It functions before the chargeback happens, that is, it stops a customer from making a chargeback.
How Does It Work?
Now, the method of Visa Rapid Dispute Resolution is unveiled:
- In the turmoil, the client contacts the bank.
- The bank informs Visa about the problem.
- Visa does a quick check if the issue can be resolved without a chargeback.
What are Chargebacks?
A chargeback refers to when a customer contacts their bank to refuse a transaction and thereby the bank reversing the payment claimed by a store. The following are the reasons that a chargeback can occur:
- The customer did not receive the ordered product
- Item was not as it was described in the order
- Someone cheated them by the use of their card
- The customer had forgotten that they had made the purchase
Why Chargebacks are Bad for Online Clothing Stores
1. Lost Money
Chargebacks come with the frustration of losing both money and the product fulfilled for the third time. In this way, the store has to bear the burden of double loss.
2. Extra Fees
So, we learn that banks impose per chargeback fee on business people when they become the victims of the fraud. These fees are not much but do add up.
3. Wasted Time
Without a doubt, chargebacks are certainly a time-consuming task. Selling businesses have to look for information in the data unit, and of course, they have to talk to banks. Instead of improving the work of their business, they will use this time to make it easier.
4. Damaged Reputation
Multiple chargebacks being noticed by financial institutions as a problem means a store may be blacklisted. They may even disallow the store from being able to accept credit card payments.
Benefits of Using Visa Rapid Dispute Resolution
1. Fewer Chargebacks
Through the practice of solving a problem before it turns into a chargeback, online shops can easily stay away from the whole issue; thus, they keep their money and also their time.
2. Faster Problem Solving
Shops will be happy when customers who have purchased goods have their complaints resolved faster by them. This will bring about the loyalty of customers.
3. Lower Costs
With fewer chargebacks, a store can limit the amount of money that it loses in the cases of lost funds and fees.
4. Happier Customers
If problems are fixed quickly, customers will be better satisfied, which, in turn, will lead them to re-shop at the store more.
5. More Time for Business
For ease in handling chargebacks, this will save you time to concentrate on growing your business.
How to Use Visa Rapid Dispute Resolution
In order to use Visa Rapid Dispute Resolution successfully, online clothing stores should go through the following steps:
1. Sign Up
Stores are requested to register with their payment processors or banks to acquire this service.
2. Set Up Rules
Stores develop a protocol by which they will use to handle a particular problem. A classic example is when they refund the customer who reports a defect item.
3. Respond Quickly
Reports of a problem should be answered quickly by the store for them to effectively retain their customer base. The fast response makes it so much more likely that the store might avoid getting chargebacks.
4. Keep Good Records
Stores should have an accurate time record of all their sales and shipments. This will help them to clearly and accurately address any issues.
Conclusion
Visa Rapid Dispute Resolution, a helpful tool implemented by most world fashion stores on their websites. In light of its rapidity and effectiveness, it can be a critical factor in helping stores save money and satisfying customers. Nevertheless, it’s not a lone solution, but it’s the best complement to good business practices.
The efforts to decrease the cases of chargebacks are continuous processes that need both attention and quick action. The ongoing vigilance of employees, immediate action after problem reports, and constant advancing of the store’s services all can be of great help in the process of chargeback reduction and business strengthening.
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