In-store or online, restaurant or retail, five locations or 500 …chargebacks occur for most merchants at some point. While cardholder disputed transactions are an unavoidable aspect of accepting payment cards, there are some measures you can take to safeguard your business from chargebacks. Read on for three steps you can take to protect your business.

1. Make sure customers understand your return policies

You should take steps to ensure that each customer that shops at one of your locations (or online) understands your return policy (and where they vary across channels if applicable). Here are some ways that you can share this important information with your customers:

  • Post at all points of sale/checkout
  • Post in your online store – both on a general information page and on the order review confirmation page
  • Print on each sales receipt

Here are some details to make sure to include in your return policy:

  • Time frame(s)
  • Terms – Do you take back worn or used merchandise with which a customer is unsatisfied, or do you only accept items that still have the tags or original packaging?
  • Return process – especially in the case of online sales

Protect your customers and your business by making sure that all customers have a clear understanding of your return policies before they ever make a purchase. You can use their knowledge of your return policy – as well as being able to prove you share it with all customers – to defend your business against unnecessary chargebacks.

2. Upgrade to EMV technology and be PCI compliant

Making sure that your POS terminals and other business systems have been upgraded to accept EMV chip cards and continually comply with PCI guidelines is a critical step in protecting your business from fraud-related chargebacks. Fraud breaches can cost businesses thousands (or more) of dollars – not to mention serious damage to their reputation.

While you’re not required by the federal government to adhere to either EMV or PCI you should consider them best business practices to which you must adhere. And, if you don’t, you’re very likely to face financial consequences. Work with your payment processor to ensure that all of your systems have been upgraded to accept EMV chip cards – an important step in avoiding in-person card fraud. If you have not upgraded to EMV POS terminals, for example, and certain types of fraud crop up at one of your store locations, your company could be held financially liable for those transactions.

PCI compliance is an ongoing process that your business completes with the help of your merchant services provider. Compliance means making sure that the devices, servers and systems that process, store and transit sensitive payments data are all completely secured and up-to-date. Among other business benefits, being PCI compliant is a great step in protecting your business from chargebacks.

3. Give your customers the very best service

No matter how hectic a busy Saturday might get at your store, you should train each of your associates to provide the very best customer service he or she can. Whether a transaction is $5 or $500, giving each person the personalized attention and service they deserve will go a long way in providing a positive experience for your brand. Providing a great, memorable customer service experience will make sure the customer isn’t left questioning the line item for your business on his or her credit card bill at the end of the month – which can lead to a chargeback.

After the customer has completed the transaction and left your store (or checked out on your eCommerce website), make sure that you make it easy for him or her to contact someone at your company if anything comes up. Show each customer that you value their loyalty – even after you’ve already made the sale.

Facing chargebacks can be challenging for merchants – but rest assured that there are some measures you can take to reduce your risk. Making sure your customers understand your return policy, ensuring your systems are EMV and PCI compliant and giving a great customer experience are just some ways you can reduce your company’s risk of disputed transactions – and the associated hassle and lost funds.